Pandora has now clocked an impressive 10 billion thumb ratings
From the music industry’s perspective, however, there’s a big difference: Amazon started its service without getting approval from the big music labels. But Apple is actively seeking licenses for its service, and will pay the labels for the privilege.
“Free needs fighting with free. That doesn’t necessarily mean it has to be free, but it certainly needs to feel like free. Long time readers will know that I’ve been banging the ‘subsidized services’ drum for years now.
But that really is how the circle must be squared, by finding third parties who will shoulder some or all of the cost to the consumer in return for bundling the service with their products. Imagine how tiny a fraction of a 3 year Spotify premium subscription would be as part of a new car sale?
Of course Spotify have already started down this path with deals with 3 in the UK and Telia Sonera in Sweden. My view is that it is this ‘third way’ (i.e. not free, not paid) which will be Spotify’s route to long term success and financial security. It is also the bandwagon the entire market needs to get on, and fast.”
As Kyle Bylin says; “We do know that the next music business is not album-centric, and that it is a much leaner industry, one that is rife with creative opportunities for artists to pursue new revenue streams. Above all, it is about acquiring fans and the creation of a middle class of artists who are going to have higher margins and smaller profits, but longer, more sustainable careers.