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Spotify is gaining leverage over record labels

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Re: Spotify is gaining leverage over record labels

#121
post #66

Can't justify Spotify as I'm paying for YouTube Red/Google Play Music as I can stand YouTube ads less than the difference between Spotify and Google Play Music. I bet that'll come up more and more. One important differentiator might be to get the Japanese record labels a bit more aligned, all streaming providers have been faring terribly on that front.

What does YouTube Red do better than uBlock Origin?

Re: Spotify is gaining leverage over record labels

#122
I wonder what Apple, Google, and Amazon Music can do to compete. They have advantages that Spotify cannot duplicate (large war chests, existing device/platform control, etc.) and one of them (Apple) is really strong when it comes to playlists. Apple is also doing a fair number of exclusive deals with music publishers and artists, although Billboard says the industry is moving away from this trend (1) although that could be wishful thinking on Spotify's part.

Another issue that's worth bringing up: Artists are getting screwed by these models as well as YouTube (2, 3). Only the largest stars can hope to make a lot of money on scale or exclusives. Everyone else gets scraps. While platforms struggle for dominance, we as consumers benefit from low-cost subscriptions or "free" music but I feel the bands and musicians who make the music we love are getting seriously short-changed. It's not right.

1. http://www.billboard.com/articles/business/7625650/are-album...

2. http://www.billboard.com/articles/news/7408970/taylor-swift-...

3. http://www.digitalmusicnews.com/2015/01/28/songs-got-151781-...

Re: Spotify is gaining leverage over record labels

#123

This is nothing more than PR fluff. Spotify is in big trouble, as waging war with Apple is proving to be far more costly than they expected. I want to know how much Techcrunch got paid for this advertisement.

Agreed, I came here to say the same thing, namely this is a PR fluff piece, not serious journalism. I don't believe there is a records executive at any of the major 3 labels that is legitimately concerned about Spotify gaining "leverage" over them. And like you mentioned Apple seems to be quietly growing its subscribers in leaps in bounds:

https://9to5mac.com/2017/02/13/apple-music-subscribers-past-...

Re: Spotify is gaining leverage over record labels

#124
post #10

Earlier quoted context omitted.

My instincts feel that way, but Apple Music announced they crossed 20 million paid users in 12/2016, 40% of Spotify's 50+ million. Anecdotally, discover weekly is a tremendous hit. Makes you wish for functional public capital markets so we knew the real story.

Spotify has partnered with telecoms, newspapers, and others to provide bundled subscriptions -- inflating their "paid" subscriber amount. A good chunk of those 50m aren't paying $10/mo; they've expanded their partnerships (in part) to inflate that number.

And students at accredited universities in the US get half price($5.00) a month subscriptions.

Re: Spotify is gaining leverage over record labels

#125
post #99

I would rather pay slightly more per month (let's say $12 USD rather than the current $10) than pay the artists less, even if the effect is relatively small due to the labels taking so much cut out of the payout. But in any case, I do believe that the way Spotify will be able to have real leverage is for it to start being their own label, not just getting exclusive content. I feel like it would be cheaper to just bri…

I'm not a Spotify user, so I will assume they don't already have what I'm going to propose. But I think it would be in Spotify's interest if it started focusing more in indie artists, and maybe even offer a special plan for "indie music", which would promote indie music, and may even give those artists more money because there would be much less indie music to listen to, and because there would be no corporate labels to take their large cuts.

The more indies Spotify gets, the more it can tell labels to go screw themselves if they don't want to take a deal, in the future.

Alternatively, Spotify could also try to do what Netflix is doing with shows and movies and start funding indies through their own label.

Re: Spotify is gaining leverage over record labels

#126
post #10

Earlier quoted context omitted.

Spotify has partnered with telecoms, newspapers, and others to provide bundled subscriptions -- inflating their "paid" subscriber amount. A good chunk of those 50m aren't paying $10/mo; they've expanded their partnerships (in part) to inflate that number.

Very interesting. Can you give me some pointers on what kind of partnerships they have?

The most recent one I heard was a partnership with the New York Times, which seems like an odd partnership to me:

https://www.forbes.com/sites/cheriehu/2017/02/13/spotify-new...

Re: Spotify is gaining leverage over record labels

#127
post #74

Earlier quoted context omitted.

Where can you pay a low one-time fee for such a vast amount of mainstream / popular music that you get to keep forever? Nowhere.

But what you pay for, you can't keep. So you are back to square one. And who said you are supposed to pay scraps for good music?

This is a non-issue to most people though. I don't care if I keep it. I'm renting it and that's fine for me because it's a lot cheaper to rent music than to buy it one album or song at a time. If Spotify kicks the bucket, oh well I'll switch to Google, Apple, Amazon, etc. Music.

Re: Spotify is gaining leverage over record labels

#128
post #79

As a paying Spotify member, practices like these only make me want to switch to DRM-free music more. Blackmailing artists with "we won't promote you if you don't lower your prices" and wasting half a million on 2 weeks of exclusivity. That's not what I'm paying them for; I pay them because I want to compensate artists.

If you want to compensate artists, buy their albums on Bandcamp. If they're not on Bandcamp, tell them to get on :)

People don't buy albums anymore, worldwide, they never have (most of it were pirated albums in the rest of the world).

Re: Spotify is gaining leverage over record labels

#129
post #11

I prefer DRM-free stores and musicians who release there.

I prefer the convenience of having access to an effectively unlimited music library, on demand, for a flat cost per month. I can see how it would be a fun hobby to curate your own collection, but for me it's really hard to beat services like Spotify, Steam, Netflix - DRM or not.

That's would be great and all if Spotify had decent coverage of underground music scenes... but they don't. Still better to collect oneself.

There's still a lot of stuff you can find on Beatport that you can't find on Spotify, for example, and most of the hipsters wouldn't even call Beatport "underground"

Re: Spotify is gaining leverage over record labels

#130

I wonder what Apple, Google, and Amazon Music can do to compete. They have advantages that Spotify cannot duplicate (large war chests, existing device/platform control, etc.) and one of them (Apple) is really strong when it comes to playlists. Apple is also doing a fair number of exclusive deals with music publishers and artists, although Billboard says the industry is moving away from this trend (1) although that co…

As a user of Apple Music and Spotify, I tell you, Apple is absolutely not strong when it comes to playlists. Just the fact that in Spotify you can have user created and shared playlists makes Spotify much stronger, for all the playlists their users have. Also, in Apple Music most of the playlists for genres other than Hip-hop and Pop are yearly "Hits" compilations.

I think that Apple is much worse than Spotify in this particular point.

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