Comments on: The Problem With Music Streaming and Why It’s Only the Beginning http://www.creativedeconstruction.com/2009/11/the-problem-with-music-streaming-and-why-its-only-the-beginning/ save the music - not the industry. Mon, 08 Nov 2010 23:35:30 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: invisiblepilot http://www.creativedeconstruction.com/2009/11/the-problem-with-music-streaming-and-why-its-only-the-beginning/comment-page-1/#comment-2877 invisiblepilot Sat, 14 Nov 2009 05:49:21 +0000 http://www.creativedeconstruction.com/?p=2659#comment-2877 [...] Deconstruction posted a great article on the problem with music streaming and why it’s only the beginning – got some interesting comments [...] [...] Deconstruction posted a great article on the problem with music streaming and why it’s only the beginning – got some interesting comments [...]

]]> By: Brian http://www.creativedeconstruction.com/2009/11/the-problem-with-music-streaming-and-why-its-only-the-beginning/comment-page-1/#comment-2866 Brian Fri, 13 Nov 2009 20:01:11 +0000 http://www.creativedeconstruction.com/?p=2659#comment-2866 Great article and summary of where things sit in the freemium and streaming side of things Refe. Amidst all of this, one thing is certain...new creative technology is the answer. I just don't think anyone has come up with it yet. It's funny that we're thinking along parallel lines at the exact same time...I just posted a blog this morning that touches on this topic as well. You can read it here: My Solution To Save The Music Industry http://bit.ly/3h2Trk Great article and summary of where things sit in the freemium and streaming side of things Refe.

Amidst all of this, one thing is certain…new creative technology is the answer. I just don’t think anyone has come up with it yet.

It’s funny that we’re thinking along parallel lines at the exact same time…I just posted a blog this morning that touches on this topic as well.

You can read it here:

My Solution To Save The Music Industry
http://bit.ly/3h2Trk

]]> By: refe http://www.creativedeconstruction.com/2009/11/the-problem-with-music-streaming-and-why-its-only-the-beginning/comment-page-1/#comment-2861 refe Fri, 13 Nov 2009 17:27:34 +0000 http://www.creativedeconstruction.com/?p=2659#comment-2861 They may own a chunk of the company, but they certainly are not acting as though they care one way or another if Spotify lives or dies. They are all but blocking Spotify's entrance into the US market. They may own a chunk of the company, but they certainly are not acting as though they care one way or another if Spotify lives or dies. They are all but blocking Spotify’s entrance into the US market.

]]> By: refe http://www.creativedeconstruction.com/2009/11/the-problem-with-music-streaming-and-why-its-only-the-beginning/comment-page-1/#comment-2860 refe Fri, 13 Nov 2009 17:25:47 +0000 http://www.creativedeconstruction.com/?p=2659#comment-2860 Yet they are delaying their US launch yet again because they can't work out a deal with the majors that would allow them to operate without losing lots of money. To give you an idea of where Spotify stands regarding profitablity, they may be scrapping freemium entirely in the US and requiring users to pay from the get-go. Yet they are delaying their US launch yet again because they can’t work out a deal with the majors that would allow them to operate without losing lots of money. To give you an idea of where Spotify stands regarding profitablity, they may be scrapping freemium entirely in the US and requiring users to pay from the get-go.

]]> By: refe http://www.creativedeconstruction.com/2009/11/the-problem-with-music-streaming-and-why-its-only-the-beginning/comment-page-1/#comment-2859 refe Fri, 13 Nov 2009 17:23:33 +0000 http://www.creativedeconstruction.com/?p=2659#comment-2859 I don't think anyone is asking you to apologize for valuing ownership (except maybe Lefsetz.) As I indicated in the post, I feel the same way. I also agree about the 'future of music' hyperbole. Will streaming replace downloading? Almost certainly no. But I do think that this concept of on-demand music with stick in some form or another and inform new models as they're dreamed up in the years to come. I don’t think anyone is asking you to apologize for valuing ownership (except maybe Lefsetz.) As I indicated in the post, I feel the same way. I also agree about the ‘future of music’ hyperbole. Will streaming replace downloading? Almost certainly no. But I do think that this concept of on-demand music with stick in some form or another and inform new models as they’re dreamed up in the years to come.

]]> By: koningwoning http://www.creativedeconstruction.com/2009/11/the-problem-with-music-streaming-and-why-its-only-the-beginning/comment-page-1/#comment-2828 koningwoning Thu, 12 Nov 2009 09:48:19 +0000 http://www.creativedeconstruction.com/?p=2659#comment-2828 just for your calculation 116.000 * € 10 = 1.160.000 per month so with that they could stream 116.000.000 songs at € 0,01 per song. Take into account the amount of long tail songs for which nowhere near € 0,01 per song is being paid... and as mentioned above: the record companies have a stake in Spotify - so they in all probability will not have to pay a standard rate but just a jiffy.... add onto that that you now can also buy songs - for which they will also get enough money and the amount of advertisers that is growing that are doing cool things with letting people make lists etc. (like Fiat did) and you can start to imagine that Spotify if not making money (they probably are burning quite a bit of money because of their US launch) is at least not making too much of a loss.... nothing like YouTube or anything! just for your calculation 116.000 * € 10 = 1.160.000 per month
so with that they could stream 116.000.000 songs at € 0,01 per song.

Take into account the amount of long tail songs for which nowhere near € 0,01 per song is being paid… and as mentioned above: the record companies have a stake in Spotify – so they in all probability will not have to pay a standard rate but just a jiffy….

add onto that that you now can also buy songs – for which they will also get enough money and the amount of advertisers that is growing that are doing cool things with letting people make lists etc. (like Fiat did) and you can start to imagine that Spotify if not making money (they probably are burning quite a bit of money because of their US launch) is at least not making too much of a loss…. nothing like YouTube or anything!

]]> By: koningwoning http://www.creativedeconstruction.com/2009/11/the-problem-with-music-streaming-and-why-its-only-the-beginning/comment-page-1/#comment-2827 koningwoning Thu, 12 Nov 2009 09:40:17 +0000 http://www.creativedeconstruction.com/?p=2659#comment-2827 Uhm... don't know where you get your figures from.... but as far as I know Spotify is already making a profit thanks to the paying customers.... will try to find the link though Uhm… don’t know where you get your figures from…. but as far as I know Spotify is already making a profit thanks to the paying customers…. will try to find the link though

]]> By: Jeremy http://www.creativedeconstruction.com/2009/11/the-problem-with-music-streaming-and-why-its-only-the-beginning/comment-page-1/#comment-2797 Jeremy Thu, 12 Nov 2009 02:18:29 +0000 http://www.creativedeconstruction.com/?p=2659#comment-2797 Eugenia and Paul together have hit the nail(s) on the head as to why streaming has a place but is *not* a replacement for ownership. Be wary of industry wizards selling streaming as the be-all and end-all "future of music." Most of them have vested interests. (Or they're just plain silly, like Lefsetz.) But none of them can guarantee the streaming service you hand yourself over to will stay in business, and none of them can guarantee that your internet service will be 100 percent reliable everywhere you need it. Is that really what music listeners want-- to hand over their favorite music to a capricious third party? And Refe, I don't think we have to apologize for still feeling like ownership is important. The zealots overselling technology are the ones who will have something to apologize for in the long run. Eugenia and Paul together have hit the nail(s) on the head as to why streaming has a place but is *not* a replacement for ownership. Be wary of industry wizards selling streaming as the be-all and end-all “future of music.” Most of them have vested interests. (Or they’re just plain silly, like Lefsetz.) But none of them can guarantee the streaming service you hand yourself over to will stay in business, and none of them can guarantee that your internet service will be 100 percent reliable everywhere you need it. Is that really what music listeners want– to hand over their favorite music to a capricious third party?

And Refe, I don’t think we have to apologize for still feeling like ownership is important. The zealots overselling technology are the ones who will have something to apologize for in the long run.

]]> By: Si http://www.creativedeconstruction.com/2009/11/the-problem-with-music-streaming-and-why-its-only-the-beginning/comment-page-1/#comment-2772 Si Wed, 11 Nov 2009 08:28:23 +0000 http://www.creativedeconstruction.com/?p=2659#comment-2772 Why is it so rarely mentioned that the major labels actually own a large chunk of spotify? This was given to them as an incentive to sign up and show spotify wasn't going to sell up as soon as it got buzz to the highest bidder Why is it so rarely mentioned that the major labels actually own a large chunk of spotify? This was given to them as an incentive to sign up and show spotify wasn’t going to sell up as soon as it got buzz to the highest bidder

]]> By: Paul http://www.creativedeconstruction.com/2009/11/the-problem-with-music-streaming-and-why-its-only-the-beginning/comment-page-1/#comment-2762 Paul Tue, 10 Nov 2009 16:03:39 +0000 http://www.creativedeconstruction.com/?p=2659#comment-2762 Your point about market dominance is spot on. If these services don't turn a profit they will go under, maybe not tomorrow or next month but it will happen. And then what? At least all the "pussies" as Lefsetz calls them will still be ok. One service that might live on however is WE7 which does free streams with attached ads at the beginning of each stream. People who find the ads annoying can pay for a premium account that is ad-free. Competing now against ad-free services like Spotify etc. is probably difficult for the company and its market share probably shows it but that could change if the others don't figure out a way to become profitable, and fast. I have used Deezer and Grooveshark and find these services great for checking out new bands that I have heard about or listening to a particular song from a band that I never really "got into". For the bands and artists that I have developed a true connection with, the only route for me is ownership, mostly CDs and then different mixes from them on my MP3 player. This music means a lot to me and I wouldn't risk having my access to it cut off because of "technical difficulties". Your point about market dominance is spot on. If these services don’t turn a profit they will go under, maybe not tomorrow or next month but it will happen. And then what? At least all the “pussies” as Lefsetz calls them will still be ok.

One service that might live on however is WE7 which does free streams with attached ads at the beginning of each stream. People who find the ads annoying can pay for a premium account that is ad-free. Competing now against ad-free services like Spotify etc. is probably difficult for the company and its market share probably shows it but that could change if the others don’t figure out a way to become profitable, and fast.

I have used Deezer and Grooveshark and find these services great for checking out new bands that I have heard about or listening to a particular song from a band that I never really “got into”. For the bands and artists that I have developed a true connection with, the only route for me is ownership, mostly CDs and then different mixes from them on my MP3 player. This music means a lot to me and I wouldn’t risk having my access to it cut off because of “technical difficulties”.

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