As independent music company Cooking Vinyl embarks on its 30th anniversary celebrations, chairman Martin Goldschmidt has been sharing his views on music-streaming, and particularly the impact it may have in emerging markets.
“I think that there are some issues with it, but they are getting a 25% up sale rate at Spotify which is pretty good. They are bringing masses of people into paying for music who used to never pay for music,” said Goldschmidt, in an interview with Celebrity Access, published on Hypebot.
“You go outside of the 10 rich countries in the world and look at China, Russia, and India, it’s obvious that freemium is the only way to monetise those markets on a mass market proposition. You get .001 percent of the market paying what we say they should pay, £10 a month, or you can get 90% of the market paying for music legitimately, and earning a lot more money. But it has to be a different business model.”
Goldschmidt also suggested that Amazon can ensure that the music-streaming market is not just a two-horse race between Spotify and Apple Music.
“If you look a bit, deeper you will see that Amazon is making a big play. In the US market, even though they haven’t launched a proper streaming service yet, Amazon actually has more streams than Apple,” he said. “When they launch their new service they have this incredible customer base that they can market to in the same way that Apple does. That could be a very big play.”
Goldschmidt went on to suggest that streaming could see music “becoming a mass market product again… if you have a small amount earned from 90% of the market then a very large amount from 4% that is substantial”, and predicted that Russia may be the industry’s next huge growth market. “You are going to have 60 million unique users paying for music a day in Russia which is a game changer…”