The Music Industry's Latest Shortsighted Plan: Killing Freemium Services
An anonymous reader notes that there have been rumblings in the music industry of trying to shut down freemium services like Spotify's free tier and YouTube's swath of free music. The record labels have realized that music downloads are gradually giving way to streaming, and they're angling for as a big a slice of that revenue as they can manage. The article argues that they're making the same mistake they always make: that converting freemium site listeners (in the past, music pirates) to subscription services will be a 1:1 transfer, and no listeners will be lost in the process. Of course, that's no more true now than it was a decade ago. But in doing trying to do so, the labels will do harm to the artists they represent, and shoot themselves in the foot for acquiring future customers by getting rid of several major sources of music discovery.
You mean more than they already do ?
From what I have seen the sites pay next to nothing and most of what they do pay goes to the labels, because the artists are still in debt to them.
Also pirates support children terrorist's
Not to be against the "voice of the people" but hasn't it been long established that most artists lose money by being on Spotify?
Supporter of the +1 Over Dramatic mod option. In memory of apk.
The last two records I purchased I paid for and downloaded from the artist pretty directly. I assume they were paying the hosting service a fee.
This is the way of the future. I'm sure the artist in question got > 50% of the revenue direct into their pockets, compared to the tiny slice a record company would pay them, this is huge.
I should use this sig to advertise my book ISBN-13 : 978-1501515132.
Beer good!!!
... see if I care.
I haven't purchased any new music in a long time; and have no plans to do so any time soon. There hasn't been that much that captures my attention or interest.
That's a good phrase. I've purchased perhaps a third of the music I own because I heard a song (or snippet of a song) in a video or just tripped across something I liked while surfing youtube. "This video has been muted due to an audio copyright claim by FuckMeI'mAnIdiot Publishing" would seem to be quite as self-defeating as normal folks claim.
Artists pay the radio stations play their music and pay the labels to market their albums to convince me to buy your $10 collection of songs and selling the same songs two and three times over as live versions and in greatest hits collections
Yeah as I type this I'm listening to pirated music that I just started downloading due to Grooveshark getting shut down.
On the 30th they shut it down. By the 3rd of May I downloaded 250 gigabytes of pirated music and got back every song I had on my grooveshark playlist.
Now I will *never* use the internet to stream music. I keep losing my damn playlists which took hard work to properly set up. Then whatever site gets shut down or bought and I'm suddenly lost one morning unable to even get my playlists (lost many great obscure songs I loved and couldn't remember the names/bands to)
First I was an Imeem user, then that got shutdown and bought by Myspace. (Fool me once)
Then I went to grooveshark who also years later got shut down. (Fool me twice)
Now I'm just pirating like a mofo and working on streaming software (which I'll be keeping private and not sharing) to give to people close to me (friends, family, etc) which will just provide a front end to the massive collection of music I've pirated. Basically creating my own streaming service which can't be shut down if no one but my close circle knows about or has access to.
Here I thought by disabling adblock on streaming sites I was actually being a "good person". Now I regret that decision after they shut it down anyways. If they don't want me watching ads to listen to music I guess I'll just fucking pirate all of it then... They had their chance.
Now I'm using my prowess as a software developer to stream my pirated collection to everyone I know with a custom program that can't be stopped. Darknets will be built by people like me.
Anyone remember that one no-name company with source code control tools that tried suing the Linux Kernel Developers? I don't either, they prompted Linus to write Git which is all everyone uses these days..... That crappy product from that crappy company isn't at a single place I've worked. Are they out of business yet for their greed?
Soulseek forever
music sucks, anyway...at least on MY lawn.
Their model for distributing music has only been around a little over 1/2 a century. New technology invalidated their business model. Guess what? That's how it's always worked. They can either adapt, or they can die.
So a few bands will make less because they won't have the album sales. Most musicians have traditionally made their money by playing live, and that's what'll happen. The difference now is, streaming services will help introduce people to new music, and some of those will go to their live shows. Some of those will buy the $30 t-shirt to further support the band. You might not have as many multi-millionaire musicians, but the internet should benefit the ones who never sold enough to make a profit on an album anyway.
the music industry wants people to pirate music.
An internal system operation returned the error "The operation completed successfully.".
Apple is one the big pushers behind this move as well as they are about to launch their own PAID music series. They want the free tier killed off so they can be more competitive in music streaming market. Now cue Apple fanboyz to defend Apple for this crap.
The more stupid crap like this I read or hear, the more and more I'm glad I still listen to nice, free FM radio, and my own collection of CDs.
Are YOU using the TOOL, or is the TOOL using YOU? Think about it!
not sure I see a problem with this. If the users were going to stay on the unpaid model and the ad revenue isn't enough to pay for it why bother hoping they convert? It only works for Candy Crush because a few "whales" buy a tonne of stuff, but with music those folks are buying CDs and vinyl for their collection. Might as well cut off the guys who want freebies...
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Suddenly, I own a focking paid for library of signature party mix.
Best con of all? I'm not even sure how they got me, so I think they can do it again.
Happiness in intelligent people is the rarest thing I know.
Ernest Hemingway
Offer tiers of service ranging from free (ad-supported) to dirt cheap (fewer/no ads) to cheap (mobile/offline support) to still reasonable (higher quality, international content, user uploads).
Allow artists to choose whether to make their content available at the 'free' tier.
Write the contracts such that paying users will always be able to access music they've added to their library, even if the artist/label throws a fit and leaves.
How can I believe you when you tell me what I don't want to hear?
Good. The music industry is like a puss filled infection on the ass of humanity that needs to be lanced and drained so something better can take its place.
My ism, it's full of beliefs.
The more you tighten your grip, Tarkin, the more star systems will slip through your fingers.
It's too bad Lucas wasn't a better filmmaker/storyteller.
"If a nation expects to be ignorant and free in a state of civilization, it expects what never was and never will be."
What really happened is the music industry allowed Apple to run their show. Of course Apple's solution to all the illegal downloads was DRM and selling individual songs. This was suppose to appease those who simply want a couple songs and not pay for a whole album. Of course that steamrolled into nobody buying anything they just pay a subscription to listen. Even that has not gone over so well with so much non DRM finding ways onto devices with or without a subscription.
Personally a lot of young people seem to still like music. But they don't seem to find much value in paying for it? The solution for artists may be to distribute on their own terms or simply pull content from free services.
The music industry is always behind, back when they could sell us an album at 15$ a pop its all you could buy, each labl had a monopoly on each artist, and you had to but it their way. Now that we have the internet it is virtually free for distribution, the cost of sharing music is zero. So if you have to compete with somebody that is selling stuff for free, you either have to give your product away or sweeten the deal. The music industry instead of innovating its business model, wants to keep the status quo. They will lose sales this way and someone will figure out a better way.
...make the best foie gras.
Any insufficiently advanced magic is indistinguishable from technology.
Yep, real smart. "Oh no, people are discovering new music for free, let's stop them."
Users: "Oh, my free streaming service went away. You suck! How do I get music now?" Googles for 'free music download', or asks friends, eventually ends up at the Pirate Bay or something. "Cool, all this stuff is free and I can even keep it without some service disappearing from underneath me!"
When will these people realise that they cannot support their old business model because technology has made it redundant. The longer they try and abuse their customer base, the more of their customer base they are going to lose. Eventually technology will steamroll them into obsolescence, but it's mainly because they never thought to give people want they want soon enough (if, back in the Napster days, they had provided an easy way to purchase any MP3 online, DRM-free, for a low price, everyone would have done that instead of finding more and more ways to avoid paying at all. Now, it's too late and the market has left them behind).
It's the horse-feed sellers complaining that everyone is using jet aircraft - and then trying to force them not to by suing? I have for quite some time been saying that they need to wake up and adapt to the technology, but I honestly think it's too late for that. The recording agencies have dug their own grave by being so backward. P2P tech and other options have left them irrelevant, and their trying to beat people up with legislation changes just makes the rational people who don't mind paying a fair price angry.
Sorry, but if I'm looking for new music, I'm still going to look at places like YouTube. If the big businesses are too stupid to put their stuff there, then it won't be their content I'm seeing - it'll be indy artists, and I'm more than happy to pay an artist directly if I think their stuff is good enough, and if I can get it without DRM (or other vendor lock-in like iTunes).
Of course, most of the big-label stuff is rubbish anyway, so I guess I'm not losing much. Perhaps YouTube will stop suggesting crap pop songs now - yay!
The article you link to is completely un-sourced. It's basically yelling fire in a movie theater. When they can point to some actual industry reports saying what they claim, hit us back up...
anymore, I find a lot of the music I like is self published by the band. It is getting to where you don't need the labels and that is a good thing.
In my case, I no longer buy stuff from itunes / any other online stores - put it on the devices to listen, I listen to the radio, it keeps me upto date and no fuss... I have a good audio system at home for which is no longer used because of mp3s - the way we listen to music has changed - and it will change more in future...
Seriously, there are plenty of ways a band can publish their music now with no need for a distribution contract. Here's a few off the top of my head:
Bandcamp :)
ReverbNation
cdbaby
Magnatune (Haven't checked if they still exist - they made a big deal about not being "evil")
Google Play
iTunes
Hell there's YouTube if you're desperate
"Nine times out of ten, starting a fire is not the best way to solve the problem." - my wife
I'm pretty sure the labels only worry about the artists when their own interests aren't involved. You're right about the music discovery, but from a label's perspective discovery is only worthwhile if it leads to a sale. If people just listen to youtube whenever they have the itch to hear a song without ever buying the track, that looks a lot like parasitism to the people who produced it.
Shoplifter? I don't think so. Why should i go to a store to buy a CD, then hunt all over the web for a simple mp3 for my mp3 player (and pay for that too), then of course because the industry 'wants' me to, pay yet again for another mp3 for my car, and so on and so forth? This business model of making the user pay and pay and pay and pay yet again for the same stuff gets annoying. People are getting tired of being abused in this fashion. And the industry wonders why we stop buying their crap? Geez......
Honestly, who even listens to music anymore?
Nearly 100% of the music I listen to is tracked by scrobbler (aka last.fm). I recently printed out a database of my listening history from the service and discovered that in the last twelve years, I have not even listened to an average of *one* song per day.
One just needs to look at Bandcamp's figures to see that if the music is good then people will pay for it even when it can be streamed (from the same site) for free. With the 'pay what you want' system , most people who pay actually pay more than the minimum price quoted. At one time Spotify used to have the facility to purchase albums/tracks which you had discovered, which provided a simple way for the listener to reward the artists they like, but this was stopped.
So they sold us stuff manufactured by person A, but showing person B (people got bent out of shape over Milli Vanilli, but the wrecking crew did the same thing with over 10,000 songs in the 1960s and 1970's, likewise the Nashville Cats and Motown Funk Brothers), lately you don't need talent, just a lot of time, and autotune, and a crapload of software on your computer. And the demographics listening to their crap has shifted (gotten smaller), and that demographic is poorer and can't afford to overpay for something that isn't necessary for life. There are about 20 pop songs I find I really like that have been made in the last 10 years. I haven't felt the urge to pay for any one of them. The radio provides a lot of music. If its not what I like, I shut it off or put on something I have at hand. I have elderly relatives who have downloaded music from the internet with no intention of ever paying big music a nickel. The ass holes who created the DMCA deserve to die broke and shunned. If there is a local artist I like selling copies of their music for a few dollars, I pay them directly. Big media gets nothing.
the executives, managers, agents, and lawyers realize that a technology shift is happening (or has happened) and that THEY, as people who've never actually created anything but who have lived very comfortably on the backs of the actual creative people, are about to be left high-and-dry. Such people rarely admit it, but there is a severe form of insecurity that comes from being wealthy and successful based not on your own abilities but rather based entirely on riding on the back of some other person who is actually the productive/creative one.... it's a dependency every bit as much as the poor single mom depending on a welfare check but masked with a veneer of success.
Unlike the actual creative people, these white-collar leeches lack the skills to start something new, so they madly claw for ways to keep the old paradigm working just a little longer. The dumber ones think they can keep it going forever. Te smarter ones know they just need to the buy time to find some other group of creative or productive people to latch onto. They're like horsemen who've ridden a horse to its limits and are looking to ditch it and hop onto a fresh horse, but they have not yet spotted that next fresh horse so they'll whip the current horse a bit more without regard to the harm they are doing since they just need it to go on a little bit longer so they can find that next horse.
If artists aren't happy with the money they are making, stop making music and get a real job.
People that do it for fun will replace you, and barely anyone will miss you.
Do the music execs even know that libraries exist, and have a plethora of music CDs from which patrons can *freely* choose? Hope they never find out!
From 1999 to 2014. That's according to IFPI statistics. The recording industry is just a dead industry, a corpse which is releasing empty threats that nobody is buying. In 20 years they won't exist anymore. They completely lost the war with piracy, they had to offer all of the music for free to make it "legal", and now they are desperately trying to switch to paid services because most majors are close to bankruptcy.
It's just a pathetic illusion. They lost the war with piracy once, they'll lose it again now that they are ridiculously weaker than 10 years ago.
Pirates OOOooo
Look. Listen. If a pirate wanted to pay for it he wouldn't steal it in the first place. Don't fall for this mouthy group's agenda. It's like try to say I should let shoplifters get away with it since they are my best customers. Yeah, right. It keeps me buying ammo is what it does.
Get it through your fucking skull that copying is not the same as stealing. If it was then telling you you're an idiot is the same as shooting you in the face. Especially as that seems to be your preferred method.
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The people in the packing department sweated their balls off FOR 70 YEARS whilst Elton sat around and got paid for the result of their work.
5 years is plenty enough time to payback. If your song can't make it back in 5 years, then either you're going to fail anyway (90% of new ventures fail, and each song is a new venture), or you've already made your money back and have to do it again to get paid again.
Just like everyone else.
Or do you think Elton works as hard as a unranium miner, fireman or serviceman at war? We don't pay ANY of them if they stop working for 70 years. Hell, we whine giving them two WEEKS off work.
What's the point of ammo if you're not killing people with it?
And murder for petty theft is a criminal offence, and can see you up for death by the numbers.
So quite why that internet hard man thought he needed to brag about his .32 caliber penis loads is anyone's guess.
Maybe they're just a psycho nutbar.
... the foot-shooting, that is, for what? Ten years? For as long as i can remember on /. , that's what we always say. Yet they are still here...
Anyone got any hard data to determine whether they are gaining or losing from all the foot-shooting?
Looking for people to chat about multicopters, coding, music. skype: gtsiros
What artists and labels should do is to learn to work with people's inclination to share things. Let them share the songs. Create the torrent yourself in fact. Include maybe your latest tour schedule as a side file, maybe a link to your site that sells t-shirts, mugs, signed pictures, etc. Use youtube and its advertizing model. Your real money is made off of touring. Ride your popularity if you put out good stuff and rather than try to sell copies of each song, sell the concert experience and the other merchandise that can't be pirated.
However this also means that artists have to plan for their retirement just like any other person. You won't get paid forever. When you have to put up that guitar or microphone or drumsticks, you have to either find another source of income, or you retire and run off of your retirement money like anyone else. Labels could include this type of planning (like a 401K, etc) as part of their benefits package for an artist using them as a platform to record songs and plan their concerts. Where does an artist get the money to start up? Gofund me, kickstarter, etc. "Hey we are doing a new album! Fans. go to our kickstarter to donate if you want to help us get it out there, this money will go towards using our labels recording studio and equipment, and buying, fixing or updating our instruments and such." Talent will do well and make a fun career and retire happy. The not talents? They fail and fans walk away and they find out that the music biz just isn't for them.
Owner: He said he had a gun and threatened me.
Cop: Well done, Mr. Owner.
DA: Justifiable homicide.
Owner: I need more ammo. My "best customer" used up my last shots.
This is a good thing for independents. These days you really don't need a label. If you've got something and worth hearing good record it at home. You can build a computer studio for around $3000 that will turn out studio quality work. So you get to record on your time table. As many takes as you want without having to worry about burning up hours. Mix it til your heart is content. And as an added bonus no indentured servitude to the label. I love it. When you're all done release a single to youtube, get your grassroots fans to spread the word on facebook and then there are multiple ways to distribute online. The music industry has changed and the majors have totally missed the boat. They are as irrelevant as buggy-whip manufactures now.
Get it through your fucking skull that copying is not the same as stealing.
Methinks the lady doth protest too much.
I'm looking forward to a rejuvenation of piracy.
I've not been so concerned since my Napster account got shut down and that was the end of getting any free music... Oh wait.. Radio...TV.... Whatever music industry.. no one even cares anymore.
I stopped buying music, and mostly stopped listening to any sort of prerecorded music in about 2000 when the RIAA starting suing the bejesus out of all sorts of people for minor file-sharing incidents that essentially was legal terrorism by the RIAA- no one they sued had the ability to defend themselves against such a well-funded plaintiff. When I realized I was paying a tax on blank CD's to the music industry that I never used for recording music I was so outraged I decided to boycott the music industry. So far I am pretty happy listening to the birds sing instead. I still have a huge collection of vinyl records that I listen to occasionally, and still listen to the radio, but I never bother paying for music. They can shut down all the music services they want, but they will never get another dime of my money.
This article is bad and the author should feel bad.
1) The conversion rate doesn't need to be even close to 1:1. Spotify makes 87-91% of its revenue from the customers that subscribe (depending on what report you read). This is despite the percentage of people paying is around or less than 25%. I've read that Spotify would be profitable if it could just get freemium users to pay $1/3 months.
2) Psy was rich before he was available in North America. The article makes it sound like exposure to the west MADE him. That's exceptional cultural egocentrism.
3) Consumers don't DESERVE free music.
A lot of people on here (rightly) say that nobody DESERVES to make a living being a musician, and that's fair enough. But nobody DESERVES free music, either. But it DOES take work and money and time to make music, so if you're going to listen to it, you should pay for it, one way or another. The thing I can't stand is people listening to music with no intention of giving back. If an artist makes music and nobody listens to it because the music isn't good, or they didn't do a good job spreading the word, well, fair enough. They don't deserve money for that. But I'd be pissed if my company decided to use my work without paying me, and it's understandable that artists (and to a more limited extent, labels) want to be paid for what you're consuming.
If you don't listen, you don't pay for it. Fine. But if you're streaming someone's music, *you should pay for it*. It's not free to make. If you don't want to pay, YOU DON'T GET TO LISTEN. That's the way it works for everything else in your life. Don't want to pay for an Apple Watch? You don't get an Apple Watch. Don't want to pay for a car? Walk. You're not entitled to music just because it's easy to obtain.