Spotify plans to extend its free service, musicians starve
Calling musicians everywhere - put another guitar on the fire, because Spotify is planning to negotiate royalty reductions with major labels so that they can extend their free service to phones.
At the moment, this is a rumour, but apparently Spotify ‘dudes’ are talking to Warner music about reducing fees and rights, and will be holding no doubt wanky talks with other labels soon.
It’s all intended to increase Spotify’s currently non-existent profitability and improve their free service – but the music industry might not be completely on board. After all, Spotify already deliver miniscule royalty cheques to musicians compared to iTunes or Amazon.
But with downloads stalling and CDs about as popular as frozen lasagne, the labels see subscription streaming services like Spotify - which has 20 million users worldwide - as the future model for the industry, so it’s in a good position to get its wish.
Whether the artists will play along is another matter - Adele, Taylor Swift and Coldplay have already bailed out because it’s not keeping them in gold plated Bentleys, wheatgrass juice and trips to the ‘Special Doctor.’
Should Spotify triumph by shafting the very people who justify its existence? Or should the artists and labels just suck it up and accept that the times are ‘a changin’?