Spotify, the most popular music streaming service in many countries plays its part by providing its users musical content of various artists in one domain. However there have been discussions regarding whether Spotify shrinks the music business by persuading people not to buy music anymore or by helping the music business by telling people not to steal music anymore.

Usually when you buy music from Spotify, you don’t have to buy it from iTunes. Spotify displaces music piracy and the two balance each other. Interactive streaming appears to be revenue neutral for the recorded music industry. Usually the argument that Spotify has is that, if they are not allowed to distribute music properly and money is not got for it, it will definitely lead to piracy of that music. They cannot sell enough subscriptions by replacing albums and single-track sales. A study was conducted which was published by the National Bureau of Economic Research.

Various record labels and Spotify are in disputes regarding new contract distribution. The streaming services require the content of the music label to exist in order to provide it to the users and the labels also require the streaming services. So, there is no way that they can convince people to buy downloads anymore. However this will not affect content owners or individual musicians. If Spotify grows to greater heights, then it will start growing the overall music pie for everyone in the music business.

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