Sony Rethinking Value Of Free Music Streaming
Taylor Swift's decision to pull all of her music off Spotify is causing ripples across the music industry and unsurprisingly become the topic of executive suite discussions at major music companies. The result, according to a top Sony Music executive is a re-evaluation of how much value that free steaming music services like Spotify have in converting free users to paid.
“Actually, a lot of conversation has taken place over the last week in the light of that,” Kevin Kelleher, the chief financial officer of Sony Music told the Wall Street Journal during a briefing for financial analysts. “What it all really comes down to is how much value are the music company and the artist getting from the different consumption methods.”
“The key question is, are the free, ad-supported services taking away from how quickly and to what extent we can grow those paid services?” said Mr. Kelleher. “That’s something we’re paying attention to as content owners who license our content to the different platforms. It’s an area that’s gotten everyone’s attention.”