The slow death of streaming music services? Part 2
Following on from yesterday’s post (HERE), I wasn’t expecting an update so quickly but…
It seems that tracks from over 200 record labels are be removed from Spotify, Napster, Simfy, and Rdio. Labels include: Hyperdub, Hessle Audio, Skull Disco and Mordant Music.
STHoldings which distributes for 238 labels and specialises in techno, grime, dubstep, and bass music, say that only four labels did not want their content removed from the streaming services.
STHoldings said in a statement: ‘As a distributor we have to do what is best for our labels. The majority of which do not want their music on such services because of the poor revenues and the detrimental affect on sales. Add to that the feeling that their music loses its specialness by its exploitation as a low value/free commodity. Quoting one of our labels “Let’s keep the music special, fuck Spotify.”‘
This action has been prompted by a study conducted by NPD Group and NARM (see a report HERE ) which found that Spotify and similar streaming services were detrimental to music sales. For a visual analysis of how much artists earn from sales of CDs and royalties from streams, see the raw data HERE.
Yes, the major labels will continue with the streaming services, I expect. The divide between the old major labels and the current/future music industry grows ever wider and the streaming services are showing that they really a part of the old dying industry rather than a part of the emerging future digital culture.