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by parbo
5243 days ago
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Why do people keep repeating information that is several years old? In Sweden, Spotify is the second largest source of revenue for the labels. Of course, I can't promise that the labels actually pay their artists. Read here: http://www.thelocal.se/38684/20120124/ |
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Spotify may well be providing significant revenue to the labels, but as Derek Webb pointed out, it's a raw deal that devalues music in general with little upside to anyone in the industry (http://derekwebb.tumblr.com/post/13503899950/giving-it-away-...).
Now sure, maybe labels have been overpricing music with $20 CDs and they're ripe for disruption. But at the same time, why should artists be keen on trading in their overpaid RIAA-type management for a handful of small tech startups with no credible upside (how viral would you have to go to earn a million dollars?). The fact that Spotify is consumer-friendly means very little to a starving artist. If I were a musician I certainly wouldn't be buying into that system. Instead I'd be tolerating piracy and doing what I could to differentiate myself in the high-value channels (ie. people buying music).