• Sweden edition
 
The comments below have not been moderated in advance and are not produced by The Local unless clearly stated.
Readers are responsible for the content of their own comments. Comments that breach our terms and conditions will be removed.
  Reply to this topic

In a tight Spot (ify) ?

Unhappy artists speak out against firm?

byke
post 11.Nov.2012, 06:29 PM
Post #1
Location: Europe
Joined: 28.Oct.2008

Interesting article that looks at the brand : Spotify.
And questions the model which claims to take advantage of the artists behind a smoke screen of secrecy.

http://www.iol.co.za/scitech/technology/bu...26#.UJ_dWqXy9lI

Could we see a backlash or even boycott by artists against Spotify ?
Go to the top of the page
+
AW1
post 11.Nov.2012, 07:03 PM
Post #2
Location: Södermanland
Joined: 20.Mar.2012

http://www.techdirt.com/articles/20120622/...y-is-bunk.shtml
Go to the top of the page
+
wondering
post 11.Nov.2012, 07:21 PM
Post #3
Joined: 3.Oct.2011

Well there are pros and cons.. Spotify is actually paying out a lot to the record companies.

At least 200 million and the record companies (all big 4) have shares in Spotify around 16%.

http://techcrunch.com/2012/11/10/spotify-i...l-music-market/

http://www.businessinsider.com/spotifys-an...g-money-2012-11

They have made losses and will continue doing so next year.

The problem for spotify is when Apple comes in to the play and Microsoft is already there with their Xbox live.

http://www.allaccess.com/net-news/archive/...by-mid-november
Go to the top of the page
+
byke
post 11.Nov.2012, 07:23 PM
Post #4
Location: Europe
Joined: 28.Oct.2008

QUOTE (AW1 @ 11.Nov.2012, 07:03 PM) *

That article is dated Jun(e?) 26th 2012
Whereas this latest article from the independent, published 2 days ago (9th November 2012) . Would appear to refute that.

http://www.independent.co.uk/arts-entertai...ay-8294714.html
Go to the top of the page
+
byke
post 11.Nov.2012, 07:26 PM
Post #5
Location: Europe
Joined: 28.Oct.2008

According to articles I have read, some music companies have taken stock as part of the royalties deal. And this stock doesn't make its way down to the artists which has lead to grievances.

It would be interesting to see how the nordic music model works, compared to other areas.
Especially given things like "iTunes match" still isn't available in the nordics due to speculation of a continuing disagreement over terms.
Go to the top of the page
+
wondering
post 11.Nov.2012, 07:42 PM
Post #6
Joined: 3.Oct.2011

From personal experience I got headhunted by Spotify to join their team but I turned them down.

I am taking the wait and see approach with them as I think that with all the losses they are making they have to come out and show they can really make a profit.

because right now they are just raising money using these private rounds but from what I can see they will definitely have an IPO. Possibly 2014/2015 and they need to show profits if they want to be successful .

if you look at groupon (totally different sector I know !) their IPO started off at $20 and now they are worth $4 . So ... Spotify have to start looking at making profits or at least turning break even
Go to the top of the page
+
Bender B Rodriquez
post 11.Nov.2012, 07:42 PM
Post #7
Joined: 25.Mar.2006

QUOTE (byke @ 11.Nov.2012, 08:23 PM) *
That article is dated Jun(e?) 26th 2012Whereas this latest article from the independent, published 2 days ago (9th November 2012) . Would appear to refute that.http://www.inde ... (show full quote)

The two articles does not seem to refute each other. It clearly states in both articles that Spotify primarily compensates labels, not artists.

After all, I doubt any of the major labels would use Spotify if they did not see it as a possible revenue stream (either now or in the near future).
Go to the top of the page
+

Reply to this topic
1 User(s) are reading this topic (1 Guests and 0 Anonymous Users)
0 Members:

 

Swedish Down Town Consulting & Productions
Swedish Down Town Consulting & Productions is an innovative business company which provides valuable assistance with the Swedish Authorities, Swedish language practice and general communications. Call 073-100 47 81 or visit:
www.swedishdowntown.com
PSD Media
PSD Media is marketing company that offers innovative solutions for online retailers. We provide modern solutions that help increase traffic and raise conversion. Visit our site at:
http://psdmedia.se