Spotiwhy? : Are Subscription Music Services a Sustainable Business Model? Subscription music services have been dominating the news recently with the U.S. launch of Spotify and the new IHeartRadio, plus free offerings from MOG and RDIO, and the recent purchase of Napster by Rhapsody.
There is a sea change occurring in all content industries moving towards streaming and subscription rather than ownership, and this transition has been causing a lot of debate and disagreement about the potential and the fairness of this new model of consumption. Spotify has been both the most visible and the most vilified of the new companies. First there was the public removal of certain labels’ catalogs from the service. Spotify Royalties. I have published a series of articles on payments by Spotify to artists in my blog.
You probably don’t have the time to read all these individuals posts so let me give you a roundup here. Ever since the story about Lady Gaga receiving $162 for 1 million streams, the Spotify payments have become a hot issue. The Gaga payment turned in to a kind of urban legend that keeps popping up in about every article on the subject of Spotify payments.
But how reliable is this story? To find out the truth I contacted labels, artists, collecting societies and Spotify. The current payment per stream is $ 0.005 (€ 0.004) Need proof? That clears up a lot don’t you think? Note the different rates for plays of the same song? Spotify: Are music owners happy with the economics of Spotify so far. Why Spotify can never be profitable: The secret demands of record labels. Imagine a new hot-dog selling venture.
Let’s also say there’s only one supplier to purchase hot dogs from. Instead of simply charging a fixed price for hot dogs, that supplier demands the HIGHER of the following: $1 per hot dog sold OR $2 for every customer served OR 50 percent of all revenues for anything sold in the store.In addition, the supplier requires a two-year minimum order of 300 hot dogs per day, payable all in advance. If fewer hot dogs are sold, there is no refund. If more than 300 hot dogs are sold each day, payments to the supplier are generated by calculating $2 per customer or 50 percent of total revenues, so an additional payment is due to the supplier. After the first two years, the supplier can unilaterally adjust any of the pricing terms and the shop can never switch suppliers. Fidel.ru — всё / Блог компании Tracks Flow. Пришло время закрывать проект.
Он проработал без малого 6 лет. Шесть лет — это невероятный срок для рынка цифровой дистрибуции, тем более в России. За это время удалось сделать очень многое. Кроме, пожалуй, главного. Fidel.ru первый в СНГ подписал контракт с Universal Music, а в дальнейшем и со всеми остальнымимейджорами, и с огромным количеством инди лейблов. Spotify Is Having A Good 2012: Revenues Could Reach $500M As It Expands The Digital Music Market. Spotify, the streaming music startup, was having serious trouble paying its bills, if you believed reports from earlier this year.
Its 2011 financials showed a loss of nearly $60 million on revenues of $244 million. But this information is out of date, because the company has had a relatively strong 2012. It made $200 million in total revenue over the first six months of 2012, and is on an annual run-rate that could put it around $500 million by January, according to confidential financial information leaked to me by industry sources. Alert (PrivCo Exclusive): SPOTIFY's Just-Closed Full-Year Financials Obtained By PrivCo Reveal Rapid Revenue Growth, But "Unsustainable" Business Model: Revenues Up 151% to $244M, Yet Cost Of Sales Up 98%, Net Losses Ballooned 60% to -$59M: "Something Mus.
Aerialsounds. Says Worldwide Online Music Revenue from End-User Spending Is on Pace to Total $6.3 Billion in 2011. STAMFORD, Conn., November 8, 2011 View All Press Releases Online Music Subscription Services Will be Main Growth Sector in Evolving Market Worldwide online music revenue from end-user spending is on pace to total $6.3 billion in 2011, up from $5.9 billion in 2010, according to Gartner, Inc.
Online music revenue is forecast to reach $6.8 billion in 2012, and grow to $7.7 billion in 2015. By comparison, consumer spending on physical music (CDs and LPs) is expected to slide from approximately $15 billion in 2010 to about $10 billion in 2015. "As consumers opt for connected devices — media tablets, smartphones and connected media players — across world regions, their desire for access to and consumption of music and content is growing as well," said Mike McGuire, research vice president at Gartner. "The music industry was the first media sector to feel the full impact of two major forces — the Internet and technology-empowered consumers.
Apple can pick its moment to re-invent music again. Apple did not announce a subscription iTunes access model – which has been mooted by the Wall Street Journal and New York Times – along with iPhones and iPods on Wednesday.
And that’s just fine. Such a move, when it happens, will redefine the industry forever – but Apple, and music, can afford to wait. Pay TV-like subscription access to unlimited content is the hot new consumer furrow being ploughed by the likes of Netflix, Spotify, Rhapsody and more. Ethan Kaplan, a Warner Music Group technology SVP until 2011, says: “When Apple goes subscription streaming, it won’t be a surprise. Before it goes live, however, two things will likely need to happen: Streaming rivals must prove that there is a meaningful enough business opportunity in subscription to draw Apple out.iTunes Store’s track download business must plateau or begin shrinking, pushing it to discover new pastures. Music streaming industry development. Royalties. Spotify: Why is Spotify so exciting.