Label executives and many distributors including most indies have been out there trying to sell artists and small labels on $5 a month streaming! Because at $5 a month many more people will subscribe to these streaming services!
1) No they won’t. Why would they pay for what they already get for free? It’s totally irrational you morons.
But Let’s ignore several hundred years of economic theory and proceed to #2.
2)Let’s say streaming gets as many subscribers as cable. Even round it up a bit to 100 million subscribers. Let’s do the math. Everyone get out your calculators and follow along. YOU WILL BE TESTED!
$5 x 12 months is $60 x 100 million subscribers. Spotify keeps 30%. that’s a $4.2 billion dollar music industry. About half what the industry is now. And it’s highly doubtful they will reach 100 million subscribers. What does Netflix have now? 40 million? and Netflix isn’t stupid enough to compete with itself with an identical free version of it’s service.
Either way at least half the money. And with half the money you can only employee half as many executives.
Let’s hope that the first batch out on the street are the ones that sold everyone on these deals. If it were up to me I’d start with the head of digital and anyone who has ever uttered the phrase “data is the future.”
You DO know there’s not room for all of you executives to work at YouTube and Spotify right?
And here’s some career advice for all you future former record executives: sell t-shrits.