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More controversy surrounds Spotify and streaming payouts


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Spotify has reacted angrily to an article on industry site Digital Music News with the headline ‘Study: Spotify is Detrimental to Music Purchasing’. The story was based on the recent report from NARM and NPD Group on digital music, and embeds a couple of slides focused on whether access to music makes people less likely to buy it.

Music Ally

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3 responses
  • Blu Mar Ten says:

    I’d just like to clarify that the comments “revenue being “negligible and these services cannibalise revenue from the likes of iTunes” were made by the distributor (ST Holdings) and not us.

    A number of the 238 labels from ST Holding’s roster have posted & tweeted the news, we just happened to be the ones who got picked up on. Not really sure why our name’s plastered all over these articles to be honest. We’re one of STH’s smaller acts!

    You can read the statement from ST Holdings here: http://www.stholdings.co.uk/2011/11/16/removal-of-content-from-spotify-simfy-rdio-napster/

  • Joel Kalsi says:

    It’s good to have your name there, “all publicity is good publicity” and I don’t think this publicity even is bad. I feel the same way about Spotify and the likes. People don’t neccessarily, or rather I’d say most likely ever, listen to every single track 250 times from Spotify to make the owners have their 0,99 euro share which would come from selling a single track for a single listener. Spotify clamps the value of music, and I don’t mean the monetary value, but the real value of the music itself.

  • Andrew says:

    Joel, your analysis “People don’t neccessarily, or rather I’d say most likely ever, listen to every single track 250 times from Spotify to make the owners have their 0,99 euro share which would come from selling a single track for a single listener” misses the point that many people might listen to a track several times that would never have bought it. I know I certainly do! In fact, according to my last.fm stats, two of my top 5 most listened to tracks are ones I never would have discovered, and therefore never would have bought without Spotify and Last.fm.

    Also missing from this point is that there are artists whose CDs I have bought, that I also listen to on Spotify, so not only have they had royalties from their original sale to me, they have also had royalties (however minor) through Spotify.Admittedly, I barely buy music anymore, I simply can’t afford it, and when I do it’s inevitably second hand sales, which does not benefit the artist anyway!

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