Post Pandora, can Australia turn its music streaming exodus around?
Eight audio streaming services have left the Australian market in less than four years. Mumbrella’s Zoe Samios examines the factors behind the exodus, and asks whether the end is nigh – or if it’s just a massive bump in the long road ahead.
In just over three years, eight audio streaming services have left the Australian market.
Deezer was the first to exit in 2014, arguing there were too many audio streamers. Telstra’s music service Mog was the next victim, quickly followed by Nova’s venture with Rdio in December 2015. In early 2016, JB Hi-FI’s service closed after four years, before SCA, Sony and Universal’s Songl and Guvera, which shut up shop later that year.
And in July last year, Pandora abruptly closed its operations, as did SoundCloud.
For clarification , Mog { Telstra’s service } did not partner with SCA.
SCA. were shareholders with Sony Music Entertainment and Universal Music in launching Songl
The biggest loser in the streaming market is the artist who everyone else profits off. The royalties paid to artists by all streaming services are appalling. No other entertainment sector pays royalties as low as music streaming. The sooner they die off the better.
Ryan, sure there are some consumers who get to consume more music and pay less than they used to by buying CD’s. Sure there are also plenty who’s 70% of $140 in yearly subscriptions is more than what they used to send to artists via CD purchases after allowing for deductions for record labels and CD retailers.
Ryan,
Two things.
1. You’d do well to look at what radio stations have paid for broadcast in the past fifty years while you’re delivering a sermon about royalties paid to artists.
2. Be reminded that for the last twenty years the global value of the music industry has been halved. Streaming didn’t do that, piracy did.
An entire generation of consumers raised on BitTorrent will not pay for music, like ever again, streaming is currently the only solution to this problem and the growth of the industry.
Sadly, you’re one voice in a chorus of ignorant people, bleeting about things they don’t understand.
Spot on Gary.
I was raised on Napster, Limewire, UTorrent, etc and have only recently taken up a Spotify paid sub, which I am very much enjoying and will continue with.
Convenience and low cost are the ways to the modern listener’s heart. Let’s be honest with ourselves – nobody gives a shit about the artist or their royalties.
Just to clarify, both Deezer and Soundcloud streaming services are still
operating in Australia as in most parts of the world, it’s only their physical offices that have moved with Deezer now operating out of Singapore and Paris while Soundcloud operates out of New York and Berlin. For some reason journalist like to conflate this issue.
The labels are gloating about how much money they are making from streaming. The last time they saw this much profit was when CD’s hit the market in the 90’s.
Meanwhile, the artists and song writers are wondering why they make so little.