Andrew Roberts, Managing Partner
It is an unarguable point that music streaming is the future, according to the BPI, Britons streamed 14.8bn tracks last year up 100% on 2013, driven mostly by improved internet connectivity and pervasive use of mobile. The flip side to this was that the majority was no paid for, indeed out of 60m subscribers to Spotify only 15m paid for it.
As Jay Z rightly pointed out at the launch of Tidal “People are not respecting the music, …(they) feel like music is free, but will pay $6 for water,” so sorry Taylor your supposed trailblazing won’t change this attitude, the industry needs to think differently.
The fundamental problem is that the cap on spend on streaming services is £10-20 per month as opposed to the unlimited nature of the CD / download market and the industry model isn’t currently predicated on this constantly declining income. This is where the next evolution will lie.
The future is value added services, or as marketers would call it, a ‘product’ based offering. This means artists offering packaged content such as video(s), images, lyrics, user reviews, interviews, acoustic sets etc. indeed as most of this stuff is already created by labels to launch an album/artist this is not ‘new’ it is just taking a different perspective.
Oh…wait a minute isn’t that You Tube ? and that is free isn't it ? for now!