Sunday, November 27, 2011

Spotify wins and loses users of electronic music

A lime and sand to Spotify. Amid rumors begin soon on whether to offer video streaming, has announced a press conference on November 30 in which a contract notice unveil 'important' - the music service this week has exceeded 2 5 million users to pay .

Spotify is one of the major music services 'streaming' and one of the hopes of the industry, although not all industry players agree. Recently, the company ST Holdings announced that more than 200 electronic music labels representing the left Spotify and other similar services such as Simy , Rdio and Napster .

The distributor of independent labels issued a statement accusing the services of "cannibalizing the profits of traditional digital downloads." The determination of  STHoldings Ltd. may be a reaction to a  study by NPD Group and NARM  published a few weeks ago. Among other findings, this report concluded that  Spotify and similar models of access "harmful" for musicians, since it discourages the purchase of records. Proponents of these models, however, believe that encourage the consumption of music and, therefore, induce the purchase of music.

Spotify speaks of a misinterpretation of the data

The official position of Spotify NAMR, and also in charge of the study, is that such research has been misinterpreted by STHoldings Ltd.  In fact, the statement released by the distributor of electronic music in announcing his resignation from Spotify and other services has been removed from the site. In its place (although the URL has not changed), there is a message  announcing that the company is " working with companies to find solutions satisfactory streaming for artists and consumers . "

Spotify bet at first to offer a system with some free-advertising-to later opt for the payment model. For 7 euros for the first six months (exclusive offer for Spain) and 10 euros per month thereafter, users can access the entire Spotify catalog from any device, mobile computers, streaming and offline.

This system, announced in May, seems to have convinced the public. On 22 September, the company confirmed that they had managed to surpass the figure of 2 million paying users. Now, just two months later, another half a million customers have signed up for the paid service of music service streaming. Moreover, this figure comes shortly after the integration of Spotify on Facebook , which led to four million people-created non-payment or account within six weeks.


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