Skip to content

March 19, 2017

Spotify may restrict major album releases to its paid subscribers

by John_A

No word on which record companies would be a part of the deal.

And so it begins: The Financial Times reports that Spotify is looking to restrict major album releases from some of the major record labels as an incentive to lower its royalty fees.

spotify-music-hero.jpg?itok=1GGk1FpM

The ploy is apparently in response to the company’s IPO ambitions—Spotify can’t make money off free listeners, and it needs to be making money to legitimize its place on the stock market. Spotify currently serves 50 million paying subscribers around the world — a 40 percent increase from the year prior.

Of course, Spotify isn’t the only music streaming service to offer this sort of exclusivity to its paying customers. Tidal, for instance, employs a “pay for access” business model, while Soundcloud keeps its bigger artist’s music libraries exclusive to subscribers. There’s no word on whether this deal has gone through yet, but when it does, there should be more information about which of our favorite artists will be affected.

Advertisements
Read more from News

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Note: HTML is allowed. Your email address will never be published.

Subscribe to comments

%d bloggers like this: