Do Major Labels Want Streaming to Kill Off Sales?

In a very thought provoking article, Moses Avalon discusses why he thinks the major labels won’t mind if digital sales die in favor of payments from streaming services such as Rdio, Spotify Last.fm etc…

Tortured album sales (which inched ahead since 2010 with the death of the two biggest illegal P2P services: Limewire and Kazaa) has inspired cost-cutting in the supply chain, thus reducing royalties and fees paid to music creators. Net result: the industry has hovered at $10 Billion a year and thus-far survived the Internet transition many other industries have failed to do.  Score one (a big one) for the majors.

But will it matter?

The latest music Armageddon theory is that subscription based streaming services like, Spotify, MOG, Last.fm and Rdio  (“Streaming”) will cannibalize recording artist’s main revenue: ownership, both of physical CDs and downloads from stores like iTunes and Amazon.

Why buy and maintain files if you can stream them on demand any time, anywhere, through any device for nine bucks a month?

 

The industry jargon for this is called going from an

“ownership model to an access model.”

 

A great read. Check it out at Moses Supposes

Author: Mike Stahl

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