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‘Sustainable’ corporate music bidniz plan

p2pnet view Music:- Pssssst. Want to know how to distribute corporate ‘product’ online and not be closed down by Vivendi Universal, EMI, Warner Music and Sony Music?

Big Music has finally come up with a bidniz plan it say will work.

Well, actually, it wasn’t Big Music as in the Big 4, ie, Vivendi Universal (France), Sony (Japan), EMI (Britain), and Warner Music (US).

But it was the biggest of the Big 4, Vivendi.

And the plan isn’t actually Vivendi’s.

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“Revealing for the first time today how the commercial relationship works between the streaming service and the record labels, Rob Wells, the senior vice-president Digital for Universal Music Group International, declared Spotify a very sustainable financial model which was paying out well to the record labels which it has entered into licensing deals with,” says the Telegraph, going on:

“Mr Wells disclosed that Spotify is paying Universal Music Group a royalty per user in only two of its territories: the UK and Spain.”

In Sweden, Norway, Finland and France, “Spotify pays the record labels from the money generated by subscriptions and advertising and not on a per user basis,” says the story, quoting Wells as stating:

“That to me equates to a sustainable business model.”

Spotify “only needs to convert approximately 10 to 12 per cent of its user base in any one territory into having subscriptions in order to make enough money to pay the record labels in this way,” he states.

Now you know.

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Telegraph – Spotify now makes record labels money, January 21, 2010


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3 Responses to “‘Sustainable’ corporate music bidniz plan”

  1. Rabbit80 Says:

    I used to use Spotify and thought it was a great service – but I would not subscribe simply because it is basically streaming service with very limited offline capacity (So I can’t use it in my car for example!) – also, the adverts got a little frustrating at times.

    Much preferred for me is the last.fm app on my mobile phone. I can type an artist name, and last.fm will play a personalised radio station for me all day.. with a mix of familiar tracks and stuff I have never heard before – WITHOUT a single advert! I already have a serious list of new artists to listen to as a result – if only I had reasonable access to their albums…. Give me last.fm for £10-£15 per month WITH unlimited MP3 downloads and I’m in! (and the recording industry earns £120+ per year that they wouldn’t otherwise!)

  2. General Mc Artur Says:

    “Pssssst. Want to know how to distribute corporate ‘product’ online and not be closed down by Vivendi Universal, EMI, Warner Music and Sony Music?”

    Yes!

    Boom! Boom! Boom! Boom! Boom! Boom!,
    TacataTacataTacataTacataTacataTacataTacataTacataTacataTacata!
    Boom! Boom!
    TacataTacataTacata!
    Boom!

    Then we sell the pieces on Ebay if anything left.

    This is our business plan and this is the only way to go when dealing with corporate terrorists.

    This is our war on terror.

    General Mc Artur.

  3. Reader's Write Says:

    Court slashes award against Jammie Thomas-Rasset to $2,250 per song
    http://www.scribd.com/doc/25590909/Order-on-Jammie-Thomas-Rasset-s-motion-for-new-trial

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