It’s amazing how long it takes the industry to catch up to us. We strongly suggested windows and pay-gates at ad supported streaming services (Spotify) to drive conversion rates to subscription revenues back in 2014 and again in 2015, twice!
Well guess what is being reported in Digital Music News this week…
“According to details tipped, the Swedish streamer would restrict the biggest album releases to only paid subscribers for a period of time.”
Wow, windowing works! Who knew?!
But here’s the real kicker, the labels are LOWERING royalty rates in exchange for the ability to window hit records! It’s unbelievable that the industry must always take two steps back for every one step forward. Does it really need to be this hard?
Read the full story at Digital Music News below:
Spotify Finally Finds a Way to Lower Licensing Deals and Go Public
One thought on “Labels / Spotify Admit Windowing is Streaming Solution (while cutting royalty rates)”
I think their reluctance to adopt tiers came from an ideological stance, rather than one of practical business. It is not a stretch to speculate that streaming models were hamstrung by the outdated Napster/Torrent mindset among management. Perhaps investors forced them to reconsider.
I hope and believe that streaming can eventually become an equitable, profitable, realistic enterprise, even if the so-called “founders” need to be dragged into it kicking and screaming.
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