Why Music Streaming Still Doesn’t Make Enough Money
The world of music has turned into the land of the free. But the cost of "free" has caused the music industry to heavily reconsider survival strategies. Check out today's article, where we explore how we can change the way we consume music.
Why buy something when we can get it for free. It is a simple concept, and since the beginning of the piracy era we have gone from seeing free music as taboo to having free music be a regular part of our normal routines. Record Labels have been hemorrhaging with this idea. Is there a way to rectify this issue? Yves Riesel seems to think so, and the solutions may be simpler than you think.
According to Riesel, people would be more inclined to pay for music subscription options if the option to pay outweighs the need to purchase. For example, if a music subscription service had tiered plans that would accommodate different budgets, it would incline people to buy more. What do you think Do you think that you would pay for a music subscription plan like the one Riesel is suggesting? Read her article on MusicThinkTank.com and let us know what you think.
"If Evernote doubles its number of users, that will not result in a doubling of their production costs. When it comes to music (or video), however, paying for periods of free use (“freemium”) or totally free use involves the purchase of expensive rights for the distribution platforms. This is perfectly normal: a baker who decides to sweeten the deal for his customers by handing out free bread will indeed have to pay for the extra flour, as well as his staff’s wages. "