The Great Spotify Mystery

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The music business has set up a lemonade stand outside its house and it’s giving away lemonade for free. Not surprisingly, people love the free lemonade, and the stall has drawn a large and enthusiastic crowd. The stand is called Spotify.

The business justifies this because it’s so easy for us to get their music for free elsewhere. With very little effort, you can obtain it simply by appending a magic word (‘torrent’ or ‘rapidshare’ usually do the trick) to the artist you’re looking for in Google.

Acquiring it may not be pleasant: doing so may help support a neo-Nazi with a grudge. But many people are prepared to hold their breath, because you can fill up your iPod or phone with music without paying any more than your monthly internet fee. That fee is a bit of a bummer – why can’t it all be free? – but a modest outgoing on a computer and an internet connection saves a lot of money.

The business looks down on this free and easy access to its assets quite understandably. Because if it’s all free, then investment in making sound recordings will evaporate. Only fools invest in businesses which aren’t going to make any money.

You’re following, I hope.

So to compete with businesses which don’t make any money and give away free music, they’re backing a business which doesn’t make any money, and gives away music for free. It’s genius.

But it gets better.

Read more at The Register

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