/ musicbiz

Finding what's been lost in the transition to digital

I realized that it's not about whether Spotify and Pandora are paying a fair rate. It's that they're not paying enough to make up for what has been lost in the transition to digital.

– Erin Griffith, at Pando Daily on the record business and Spotify.

I believe a lot of the angst the recording business are experiencing is rooted in not fully understanding internet economics.

Spotify's 6 million paying and 20 million ad-supported subscribers aren't anywhere near enough to make a viable business, for either Spotify or the record industry.

I have no idea when this mythical fair materializes, but "what has been lost in the transition to digital' won't be found until paying subs top at least 100 million.

It's also worth noting terrestrial radio does have a royalty obligation to songwriters, so it's not as if Pandora et al are being victimized while terrestrial gets a pass. Maybe the Rome Convention is looking pretty good to U.S. recording artists about now?

RobC

RobC

Marketing. Tech. Tunes. Words. Don't believe everything you think.

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