Spotify and other online streaming music download services have risen in popularity among consumers in recent times, however, it looks like at least one company doesn't care for this kind of business model. VentureBeat reports that UK-based STHoldings -- a music distributor -- has pulled music tracks that belong to the over 200 labels they own from Spotify, as well as other similar streaming services like Rdio, Napster, and Simfy.
The reason? STHoldings believes that while Spotify and other companies do allow its music to be offered to millions of consumers, it adds, "[...] we have concerns that these services cannibalize the revenues of more traditional digital services." It added, "They provide poor revenue and have a detrimental affect on sales." The statement also includes a quote from one of STHoldings' unnamed music labels which bluntly said, "Let’s keep the music special, f*** Spotify."
In its own statement, Spotify refuted STHoldings' claims, saying, "Artists can — and do — receive very substantial revenues from Spotify, and as Spotify grows, these revenue streams will naturally continue to grow." It added that it hoped that STHoldings would change its mind on this matter, saying, "Right now we have already convinced millions of consumers to pay for music again, to move away from downloading illegally and therefore generate real revenue for the music business."
Streaming music services are certainly an easy way to listen to music you like as well as discover new music artists. However, such subscription services are subject to the music labels' support. If they decide to no longer provide their properties to Spotify that could leave such businesses in the dust in the long run.
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