Music streaming business model is set for ‘massive change’ warns Vevo boss
The international boss of music video streaming service Vevo has told a forum that the global music streaming market is about to face a major shake up in the next two years.
Citing singer Taylor Swift’s decision to pull out of music service Spotify, Nic Jones, executive vice president international at Vevo, told a panel discussion hosted by Authentic Entertainment that many services were not paying artists/licensees enough and that many of the existing deals would not be renewed.
“There will be a massive change in the next two years, I promise you, you will see a massive, massive change,” said Jones. “There are a whole bunch of (licence) deals that are coming up for renewal and they will not be renewed.
“It will be very interesting to see what will happen.”
Taylor Swift didn’t move her music from Spotify because she wasn’t getting paid enough, it was because Google’s identical service paid her more. It was a PR stunt.
http://www.smh.com.au/entertai.....1phki.html
Isn’t not being paid enough and somebody paying you more pretty much the same thing?
Hey Anonymous, you are clearly a Spotify troll. It is not just Taylor Swift who has exited Spotify or employed windowing strategies – numerous global artists have including; Tom Yorke, Adelle, and numerous others…Look there are streaming businesses that pay more per stream them Spotify (a lot more we are talking 8-10 x what Spotify pays). However even that is not viable for artists. Going further streaming is not viable for the streaming businesses themselves look at there costs – upfront advances paid through to labels to license there catalogue (which are not then paid through to the artists who’s catalogue the labels trade on), equity that Spotify had to give labels on top of those aforementioned advances (which totaled over $50 million USD just for Spotify to launch in the US) and then they have to paid rights holders labels again for each stream (then the labels pay peanuts form those already peanuts per stream rates through to artists). Google laughed when Spotify was trying to sell itself at a $10 billion valuation – for a business that has not yet turned a profit. For streaming to survive as a viable model over the long-term labels need to stop there triple dipping – no other industry in the world gets away with it (advances, equity and royalties per stream) so why should the music business?…Just a thought