Showing posts with label streaming music. Show all posts
Showing posts with label streaming music. Show all posts

Friday, May 15, 2015

The risks of banning free streaming tiers

The music majors are negotiating with streaming music providers (Spotify) about curtailing free services. The free service could be capped:
  • Max 3 months, or 6 for existing users.
  • Possibly shorter or longer for selected artists.
Before banning free music altogether, one must bear in mind:
  • Free users do convert to paying users.
  • Free users do generate revenues: from advertising. This could possibly be extended.
  • Banning free will only lead to more piracy.
YouTube is the sector's biggest player. The above goes for YouTube as well: it tries to convert users to YouTube Music Key (or Google Play Music) and it has sophisticated ad models.