‘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.
..… and identi.ca
First they ignore you, then they laugh at you, then they fight you, then you win ~ Mahatma Gandhi
Telegraph – Spotify now makes record labels money, January 21, 2010
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