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.
“Along with NARM, we’re confused by the way this research has been interpreted, since Spotify was not referenced anywhere in the research questionnaire and had only been live in the US for a matter of days when the study was carried out. The deck also makes absolutely no reference to Spotify and certainly does not draw any conclusions about Spotify, such as those made in the article,” a spokesperson tells Music Ally, citing data from Europe where in 2010, markets with Spotify saw an average digital growth rate of 43%, compared to 9.3% for Spotify-less markets.
However, back in Europe not every artist is on message. Drum’n'bass act Blu Mar Ten‘s distributor is pulling music from all streaming services due to revenue being “negligible and these services cannibalise revenue from the likes of iTunes”.
The statement claims that Q3 was its first full quarter supplying content to the streaming services, and that 1.) its iTunes revenue fell by 24%, 2.) streaming accounted for 82% of tracks consumed but only 2.6% of revenue, and 3.) that Spotify specifically paid £2,500 for 750,000 streams during the quarter.