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And the problem with piracy flourishing is?...


I hope he's wrong too. The problem with not having any LEGAL streaming is that it opens the door for plenty of ILLEGAL streaming. That won't benefit anybody.

At the same time though, doesn't take much to perceive that the Spotify business model is kinda set up to fail.

Just for the record, though, I would neither support nor subscribe to an Apple/iTunes streaming system. Not after my account got hacked and I couldn't even get a live person on the phone.

I doubt I'm the only consumer who feels this way.

Band Member

The problem with piracy flourishing Pierre is that assholes like you don't want to pay for what they've got and that mentality is what's destroying this world.

If you didn't earn your paycheck you don't deserve it, if you didn't pay for your music collection with money that you earned you don't deserve it.

Get a job and pay the musicians what they deserve you greedy asshole.


Piracy exists because the record companies made us pay high prices for a disc with one hit and 11 crappy songs. People don't trust what the record companies are peddling anymore. BUT studies have shows that people who download for free and actually find a band that they like will become a fan and buy the CD, buy a ticket to the show, and buy their merch (not only at shows but in retail stores). The whole model is changing. Music isn't the product anymore. Music is the advertisement to get you to become a fan of the band and the band makes money in other areas. Hence why record companies are signing 360 deals as they know the end is near and want a share of every revenue stream. Bottom line is put out a good product and people will still buy it. Which is why Eminem and Taylor Swift (who I'm sure have had millions of stolen downloads) can still sell a ton of CDs as they are a proven product.

Lynn S.

You forgot to mention Napster, which also is in the streaming business. They offer an annual plan ($96) cheaper than its competitors, and they have the might of Best Buy (declining sales this xmas, notwithstanding) behind them. I like the service, and will see if it saves me money this year as I just upgraded to the mobile service for my iPod Touch.

Evan Read

Just being picky ... but there is a quote early in the piece about major labels "agnostic relationship with Steve Jobs". Agnostic relates to not quite believing in God ... Steve Jobs, while a talented businessman, is not God - whether you believe in him or not!!

I think the word was meant to be "antagonistic"?

Anyway, the major labels better pull their head out of the sands quick-smart and help these services rather than blocking them. They can't stop progress, so they best work out a way to make it all work without putting up all the barriers and old-school arguments that they seem to be persisting with.

Kyle Bylin

Pretty sure I'm on point.

define:  agnostic

Someone who is doubtful or noncommittal about something.


Would you consider the labels to be "doubtful or noncommittal" in regards to their relationship with Steve Jobs?

I do.

Thanks for the comment.


I woule like to know how the revenue scheme of an online streaming service works in the background.
First off, I don't think Spotify only generates money via advertising. Spotify retributes authors rights and neighboring rights back to the composers and the labels for every song streamed. Sure they're losing money that way too but in a not so distant future, when there will be dozen upon dozen of million subscribers on these services around the globe paying their 10 dollars a month, with the service itself paying the right holders their tiny (tiny) contribution for every song streamed, online streaming will make lots $$$ and the industry will get its share. And why do I think dozen if not hundred of million of peeps will sign up to spotify related services in a couple of years? Well because the streaming model is just awesome - the perfect music experience - there is absolutely no comparison. Havent tried thumbplay cause i live in France, but spotify represents EXACTLY what many people want in terms of music consumption.


I should've probably said that I'm a musician. In any case, I'm sorry that you will live in constant paranoia and fear that your music is being "illegally" transmitted over the web. I on the other hand, would very much appreciate it if my music were being torrented and streamed on YouTube. It means people actually want to listen to my music.

So are you in it for the money or the music? I make MUSIC, and anyways are you really going to charge money for virtual files? I have no problem with charging money for physical products like CDs (remember those?) and merchandise. In fact, my goal is to one day have my entire music collection on CD (which means I can import them in FLAC - ever heard of that?) so I really don't see what you're saying about mentality.

Finally... anywhere I could listen to your music? I always like discovering new bands and artists.

Cheers, Pierre.


Band Member, guys like you belong to the stone age-extinct races of animals. The words you uttered simply gives us an idea what kind of specie you are.And you don't speak like a band member you claim you are. More like Clay Aiken :P

Mojo Bone

I think that diction-wise, the jury's maybe still out on whether a relationship can be "agnostic"; could a relationship be characterized by "Catholic" rather than "catholic"? How 'bout fundie LDS? Ever have a Jewish relationship? I got what you meant, but I don't 'believe' your usage qualifies as Standard English. ;-)

Mojo Bone

I think it's more accurate to say that Spotify is being set up to fail in the US by the major labels.I believe there will be a streaming paradigm, legal or otherwise, because people who don't see a need for physical product ALSO don't see any for carrying a bunch of files around on a drive, no matter how small.


About two of these comments were pertinent and useful, thanks.

Catherine Hol

Surely the fact of massive piracy shows that people actually DO like downloading music rather than streaming?


Ever spent any time examining an established artist's royalty statement? The problem is that streaming and piracy pay about the same.

Until that is addressed and fixed, Spotify and their peers are going to have a very difficult time persuading content owners to hand over the keys to their catalogs.

If Spotify and Last FM can't turn a profit given the pittance they pay out for music, then there must be some critical flaws in their business models.

Don Schlonzo

So the labels got a choice:
either they try to make streaming offers attractive and earn money, though not the gazillions they used to - or they deny their content to streaming services and earn nothing at all.
I'm not situated in the heights of music company stardom, where the air is apparently unbreathably thin, but for me it sounds logical to choose earning at least a little, rather than nothing at all.
or maybe the guys at the top of the music industry skyscraper got a machine to alter reality - from what we've seen these last years, they tested it on themselves, seems to work perfectly fine as the continued denial of reality proves.

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