One of the newest additions to the musical distribution landscape is the online music service, Spotify, a European-basd company co-founded by Daniel Ek. Though not yet available in the US, the service, which offers both free and subscription-based versions, includes a vast library of thousands of songs available as streaming music.
However, the burning questions remain - how does one get consumers to pay for something that they can currently get for free (albeit illegally), can one sustain a business model based on the idealized view that the mindset will change, and, most importantly, is Spotify the model that will do it?
What are the drawbacks?
Several problems have come up with regards to the service. For one, if a subscriber cancels their subscription, they lose any songs they've accumulated in their library. Also, if a subscriber opts for the free service, they have to put up with advertising, which those who opt for the paid subscription-based service avoid. Also, though the library available includes thousands of song titles, there are still thousands more unavailable to consumers.
What’s available and what isn’t?
Though Ek states that the labels have thus far been very receptive to Spotify some tracks are not available in every country, and many big name bands have opted out of inclusion, including The Beatles, Metallica, and Led Zeppelin. While there are plenty of artists still available, the service also ostracizes a rather large pool of talent by not including independent artists (yet), which means no Radiohead, Nine Inch Nails, and Ani DiFranco, all of whom handle their own deals and aren’t affiliated with a major label.
However, “right now, due to our huge scope and the level of work that lies purely in adding our labels’ entire catalogues (we’re only a third of the way through even now), we haven’t struck any independent artist deals, although we’re definitely open to it,” Ek says in an interview with the UK's Daily Telegraph.
What does the future hold?
Currently, Spotify is working out some kinks, including making music easier to purchase, cleaning up the library handling, and improving portability. However, Ek is still very optimistic that the business model will be a success, and firmly believes he will be able to convert those who utilize illegal file-sharing into those who purchase their music legally (preferably by using Spotify, of course!). It seems only time will tell, though recent studies have shown that illegal file-sharing is going down. Maybe Ek is onto something.
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