More than 200 record labels have ejected from Spotify and other music streaming sites. The labels have yanked their catalogue from Spotify, Simfy, Rdio and Napster in protest at negligible royalties, a loss of sales elsewhere, and the devaluing of music, saying goodbye with a defiant "F*** Spotify".
The 200+ indie dubstep, grime and electro labels represented by distribution network ST Holdings believe streaming services cut into other outlets for their music, as listeners choose to stream music instead of buy CDs or full-priced downloads. And although streaming is a promotional tool and earns the labels some cash, it's nowhere near enough to justify the loss of money from not selling a CD to each listener.
On a more ideological note, the labels believe that streaming presents music as a low-value commodity, a disposable thing with little or no value. One of the labels added, "Let's keep the music special, f*** Spotify."
Although the major labels -- and therefore, most major acts -- aren't going anywhere, this does mark something of a backlash against streaming services. Recently, Coldplay, one of the biggest bands in the world, decided not to release their album Xylo Myloto through Spotify, with a similar move by Adele, the artist with the biggest-selling digital album of all time.
Proponents of streaming music argue digital music is a tool for discovering new artists, after which the newly converted fans will supposedly rush to buy an album, go to a gig or buy merchandise. But it seems many listeners now stream music as an alternative to buying, rather than as a precursor. And a band cannot live on merch alone -- even successful gigs won't keep a band in guitar strings and hookers unless they reach a level of relatively sizeable venues.
Unfortunately, Spotify's revenue deals are shrouded in mystery, with four major labels having a reportedly significant stake in the service. Ultimately, as music-lovers and technology fans we want to listen in the fastest, easiest way possible and pay for our music safe in the knowledge that it will go to the people who made the music -- but with the music industry in a transitional stage, it's hard to say if that's truly happening.
The music industry needs to work out how to make money from online service, because it's not going away: just this week, Google Music, BlackBerry Music and Apple's iTunes Match all launched in the US.
How have your listening habits changed in the digital age? If you listen to music online, how do you support the artists you love? Tell us your thoughts in the comments, on our Facebook page, or at Google+.
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Comments 7
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Rory Reid 18 November, 2011 10:07
Their music can't be that 'special'. I've never heard of any of the record labels on the ST Holdings roster. F them.
anonymous 18 November, 2011 14:14
Spotify is happening!
Artists and labels have fought against the internet for so long now and seen little success.
Perhaps they need a better position within Spotify to generate money.
Either way....
The new model for music distribution will be online, its going to be a tough battle to convert customers to buying CD's once they've spent some time getting "all the music" for $5 a month.
I know that music might become "less special" for some people, but the internet has done this to all of the entertainment industries. Films became less special when you could watch them on computers and nobody went to the cinemas.... and so on.
So my point is, rather than shun the new service that is already proving itself to the fans. Think of a way to use Spotify and similar services to help you (if your an artist). I don't know how yet, but most industries find a way to make the most of new technological trends.....the music industry is usually the slowest though.
anonymous 18 November, 2011 16:20
I say, ****** Spotify. And that's "forget." MOG is the gold standard for me after having used both of them for the last several months. Better catalog, better interface. I'd waited for years for Spotify to show up, even going so far as to try the proxy angle from here in the U.S., but MOG (and, before it, LaLa) came along and ate Spotify's lunch. Right now, the only edge Spotify has is the playlists ginned up by users.
anonymous 18 November, 2011 16:25
The record companies are too used to private planes earned by the sweat and tears of badly treated fans. Now the fans are biting back. I say **** the record companies. And if ANYONE has got into music in the hope of making money, wake up and smell the coffee.
Also, why should anyone continue to make money for some work they did 20 years ago? I don't still get paid by my employer from 20 years ago, I don't see why musicians seem to think they are somehow different.
anonymous 18 November, 2011 19:49
I do agree that there could very well be lots of problems with spotify, it shouldn't be too hard to divide each persons payment to the artists proportional to which ones they listen to (minus the service maintenance costs of course). I'm all about fair compensation.
Still, I don't quite understand that "let's keep music special" -sentiment. Do you think Spotify has made Beethoven's music disposable commodity? Bah, if you want your music stop being disposable commodity and something special you better make it such! That's by making good, memorable music, not making it more expensive and harder to get.
anonymous 18 November, 2011 21:31
@Rory Ried, and perhaps you should listen to more music and not criticize labels and music that you haven't heard of. I recognise quite a few of those labels and they put out decent music and if they don't want to be on spotify then it tells you a bit about the service. Music isn't all about what's popular and every label had its early beginnings, so **** you and your shallow view on music.
anonymous 19 December, 2011 04:50
According to lots of ‘studies’ and ‘research’ people who pirate music also BUY more music.