UPDATE: The Awkward, Unanswered Questions That Led to Coldplay’s Spotify Embargo

Posted by | Oct. 30, 2011 | 4,009 views

Coldplay have opted to not have their latest album Mylo Xyloto made available on streaming services…all of them, though of course Spotify is the core motive for this move.

It is yet another thrust of the wedge which is inserting itself between the streaming service and artists.

The download / streaming revenue disparity
Coldplay – with apparently begrudging support of their label EMI – have made a business decision that they would prefer to have a smaller number of people listening to Mylo Xyloto to ensure that a larger number of them are buying it.

The problem with Spotify is that it generates so little income per activity to artists compared to downloads, but this is not just a Spotify issue. In my earlier post showing PledgeMusic’s Benji Rogers’ digital income I showed how the average pay out per activity for streaming services (premium ones included) is over 300 times smaller than the average pay out per activity on iTunes.

Now, to be clear, we are not comparing apples with apples here (no pun intended). An activity on iTunes is a one-off paid download, whilst an activity on a streaming service is one stream and that play could occur multiple times for the same song. Yet it still leaves a rather large number of plays required before you start catching up with an iTunes pay out.

The three possible reasons why artists get so little from streaming services…read the full story at Paidcontent.co.uk

Spotify provided TMV with this statement in relation to Coldplay’s Spotify Embargo.

“We have strong support from the music industry, and of course respect the decision of any artist who chooses not to have their music on Spotify for whatever reason. We do however hope that they will change their minds as we believe that the Spotify model is adding, and will continue to add, huge value to the music industry. Right now we have already convinced millions of consumers to pay for music again, and they are generating real revenue for the music business. As we increase in scale, we will continue to re-educate millions of additional consumers as to the value of music, and we will thereby revitalize artists’ ability to make music and make money from it.

Artists can – and do – receive very substantial revenues from Spotify, and as Spotify grows, these revenue streams will naturally continue to grow. Spotify is now the second single largest source of digital music revenue for labels in Europe (IFPI, April 2011) and we’ve driven more than $150 million of revenue to rights holders (ie whoever owns the music, be it artists, publishers or labels) since our launch three years ago.”

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Posted by on Oct 30 2011. Filed under Digital, featured. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

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