Music News: Artists punishing fans who pay $111 a year for music

Dust2

There are several famous Spotify holdouts (Adele, Coldplay, Black Keys, Beatles, The Eagles, Led Zeppelin, Metalica, Pink Floyd, AC/DC etc...) but does it make any sense to deny your music to people who are paying the most for recorded music?

http://paidcontent.org/article/419-s...lay-illogical/

Quote:

“Withholding a record from Spotify doesn’t mean that it’s not available for streaming,” he argued. “All of this stuff is available on YouTube (NSDQ: GOOG). You’re just pushing them to somewhere it’s not monetisable.

“There’s illogic behind withholding a record.What you really want to do is reward the people who are spending $120 a year, rather than punish them by not making the records available on the platform.”

Look at this stats:

Average American pays about $23 a year for recorded music
Average Itunes/Amazon MP3 downloader pays about $60 a year for recorded music
Average Spotify paid subscribers pay $111 (euros/pounds) a year for recorded music

Quote:

“The vast majority of customers are paying 120 dollars, pounds or euros every year, which is around twice the amount the average user purchases on a download service every year.”

The music industry is a funny business sometimes.

MEGA

iTunes >>

Dust2

Quote:

Originally posted by ShAv

iTunes >>

http://www.theverge.com/2012/1/26/27...music-industry

Quote:

"The average iTunes consumer spends $40 a year," says MOG CEO David Hyman, "of which the labels are getting about 60-70%." In comparison, labels get 65% or so of MOG's income, which is $10 a month for a premium subscription (though $5 subscriptions and a free service are also available).

"I have my own black hole in knowledge when it comes to individual deals between artists and labels," admits David, "but I do know that the content owners, the labels and the publishers, are getting a lot more money out of these subscription services than they're getting from iTunes."

Things look even better for streaming services when you consider that the average American spends only $17 a year on music, a number cited to me by an indie label executive who wished to remain anonymous.

Dust2

Spotify growth:

January, 2010:------------ 250,000 paid subscribers
March 17, 2010:----------- 320,000
July 20, 2010: ---------------- 500,000
December 8, 2010: ------ 750,000

January 26,, 2011-----------around 800,000

March 8, 2011:--------------- 1,000,000
July 14, 2011: -----------------1,600,000
Sept 21, 2011: ---------------- 2,000,000
Nov 23, 2011: ------------------2,500,000
Jan 26, 2012: -----------------3,000,000 paid subscribers

Which means that in the last 12 months, Spotify gained 2,200,000 paid subscribers. -----who paid on average

-111 USD each year
-111 pounds each year
- 111 euros each year

But hey, let's deny the customers that pay the most money. We don't want $111 a year, we want Itunes $40 a year. Doesn't make much sense!!!