Tag Archives: spotify

audio, mobile, music industry

Spotify everywhere: now on Logitech Squeezebox as well as Sonos, Smartphones

Spotify, the music streaming service, has announced a partnership with Logitech to enable subscribers to play music via Squeezebox. Logitech already has a partnership with Napster for a similar service, but Spotify is winning in terms of usability, ubiquity and mind share.

It follows a similar agreement last September between Spotify and Sonos, a Squeezbox rival. The company has also announced support for Windows Phone 7, which joins Apple iPhone/iPad, Google Android, and Nokia Symbian among supported smartphones.

Spotify is available for free on a PC or Mac, but supported by advertising, making it like a commercial radio station where you choose the music. However only paying subscribers get the benefit of using the service from these other platforms.

In my view streaming is the future of mainstream music distribution, so I see this as significant. Why pay for downloads, when you can choose from a vast catalogue and play what you want when you want?

The main snag with Spotify is that some artists are not available on the service, and some countries (including the USA) cannot get Spotify. Still, if it builds a big enough customer base, the music industry may find it cannot do without the service.

apple, music industry

2010 a bad year for UK music sales as CDs decline and paid-for downloads fail to compensate

The BPI has reported figures for 2010 music sales in the UK. In brief, digital (download) album sales increased from 16.1m to 21m (+4.9m); but CD sales declined from 112.5m to 98.5m (-14m).

To be fair, the “singles” market – that is, individual tracks downloaded – rose from 152.7m to 161.8m (+9.1m). If an album contains on average 12 tracks, that would be roughly equivalent to another 0.75m albums. CD single sales are tiny at 1.9m.

Overall it is still a significant decline. What is most worrying for the industry is that CD sales still dominate – there were 4.5 times as many CD albums sold as digital. Anyone can see that the CD market is in severe decline. Shops that stock back-catalogue in depth have disappeared from many high streets, leaving this market to online retailers like Amazon.

The BPI says piracy is the core problem:

Despite unprecedented demand for music, and strong innovation offering consumers new ways to access music online, legal downloads are unable to offset the decline in CD sales because they are dwarfed by illegal competition.

While this may be true up to a point, another way of looking at it is that technology is making the old purchase model for music obsolete. Digital music is so easy to acquire and share that it is hard to persuade people to pay per-track or per-album. It is also a rather poor deal for the purchaser, in that they get no resale rights or tangible goods.

The BPI does not mention it; but another thing I see frequently is where someone buys a CD, rips it to their hard drive, and then sells the CD on. This also costs the industry a sale.

Old-style piracy is a problem too. The market for Beatles Remasters box sets was badly damaged by far east copies, available in bulk for a fraction of the price. There is no easy way for a customer buying online to know whether or not they are getting the real thing.

Instead, the business model that makes sense is a subscription like that offered by Spotify. There is no pretence that users own the music they listen to: rather, they play what they like where they like, choosing from a vast online catalogue.

Apple seems resistant to the idea though, which is understandable since it does so well with its existing iTunes store. And even if subscriptions do catch on, there is no guarantee that the revenue will equal that of the old days of the CD.

Those days will never return though; and the industry should get behind the streaming model as it is so good for their customers. It also has the advantage that they keep paying, whereas people tend to stop buying music once they feel they have enough.

See also: Mark Mulligan’s post about the death of physical media products.

internet, multimedia, spotify

Spotify goes social with Facebook, supports local music library

Spotify has announced a set of new features with the aim of “evolving into a total music management platform”, according to today’s blog post. There are two key features, available to both free and paying users.

The first is a link to Facebook, enabling you to see and share the playlists of your Facebook friends and to send them links to tracks.

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Second, you can now Spotify to manage your local music library as well as what is available online. One reason to do this would be to fill gaps in Spotify’s database, formed by artists and labels who have not signed up – The Beatles, King Crimson, Metallica, Pink Floyd, Led Zeppelin and many more. This music can also be copied to mobile devices. It is not stated what format local music has to be in, but

Clearly the local music option may break shared playlists. Spotify will link to the same track in its own library where possible, or else come up with a replacement – maybe the same track performed by a tribute band, or who knows what?

Spotify is a game changer, partly because  thanks to the high quality of its software, and partly because it comes close to an ideal concept for listeners: play anything you like, wherever you like, and for free. Whether this is a viable business model for the music industry is open to question, though the combination of advertising and premium subscribers does provide some income.

The most interesting aspect is the Facebook link. It is another example of how Facebook is worming its way into other online services and helps its goal of being your key online identity, at least for social matters.

A YouTube video has a demo of the new features.