Universal Music Group’s digital boss Rob Wells has mounted a strong defence of streaming music services like Spotify, claiming that UMG’s internal research shows claims they are cannibalising CD and download sales are “absolutely bogus”. Wells says UMG has analysed data from four specific artists’ streaming and download revenues in the last six months. “Every single one of those bands has earned more money from its album being on Spotify than it has from being on any other services within a period of time”. The label hasn’t named the artists in the study. “What we are seeing is that all these new services and new subscription packages are exploding without compromising or cannibalising other revenue streams.” UMG is holding an event tomorrow night in London at which we expect to hear more about its views – and possibly more on the research Wells is referring to.
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