Streaming Rates: Get the Facts, Get My Opinion

I don't even understand how you don't already

I don’t even understand how you don’t already…

Let’s face it, in today’s music industry going digital and with the existence of genius and authorized sources of information (Like this blog… right??) I see a lot of people arguing over important topics but none of them seem to have their facts right.  More importantly, it seems like people are just missing the point.  So, I’ll address both in this post.

I found a neat article off Digital Music News that took the sales of individual artists and did the math themselves based on the royalties the artist received.  The averages rounded out to the numbers in this post.  Please tell me you already knew most of these don’t make more than a third of a cent, or you’ve got Jackie Chan up at the top of this post to give you my response to that…

SPOTIFY:  $0.005 Per Play

RHAPSODY:  $0.013 Per Play

NAPSTER (It still exists… Sorry Lars Ulrich):  $0.016 Per Play

ZUNE (Microsoft):  $0.028 Per Play

So, if you were to use some common math there, you’d find out that Spotify is actually one of the digital streaming service providers that provides the least.  And, if you weren’t surprised that Napster even still existed despite the Rhapsody buyout, it’s actually making more money than Rhapsody.  To drive that one deeper, Zune, the online service you totally knew existed, makes an artist the most revenue per play.

 But wait! This means we all have GOT to hop on the Zune now right?  If we all hop onto the streaming service that pays out the most, then we’ll provide better support to the artist and then we can fix the industry, right?!  Well… my facial expression would be:

You had to irritate me enough to pull out CARTOON Jackie on your ass.

You had to irritate me enough bring CARTOON Jackie into this.

It’s not a question of what is the “better” streaming service.  For too long I’ve scoured these online blogs and sites and seen people jabbing back and forth about which streaming service is going to save the music industry, or that streaming altogether is the cure to the industry situation.  It’s really not.  It’s the industry’s last stand.  If shelling out tons of cash on a vinyl didn’t work, we advanced with technology to make $10 CD’s to appease the solution.  When $10 CDs were too much, we hopped onto iTunes for digital downloads.  When music going on digital meant we wanted it all free, we gave them streaming.  Streaming is a compromise, NOT a solution.  The music industry has only been piggy backing on the innovations and evolutions of technology.

You can disagree with me as much as we want, but the numbers don’t lie.  The future of the industry lie in VIP packages and live shows, not streaming.  And even then, we have to play the live music game very carefully; something I’ll cover later on.

Take it from Lady Gaga, integrating her fans into one website online, combining the online social instant gratitude into a unified fan base that share interest into her.  Of course I’m not the biggest Lady Gaga fan around, but I know a damn good idea when I see one and she’s laughing herself to the bank

Only an obscene amount of cocaine could front an idea like that.

Only an obscene amount of cocaine could front an idea like that.

Again I’ll say it again, you don’t have to agree with me, but let’s face the facts.  Instead of arguing over what streaming service works better, or what are the current flaws in the streaming model, we gotta get on thinking on alternatives.  For too long the music industry has been riding on technology’s progress.

– @NishadGeorge

Windows and Other Transparent Ideas

What could these two albums possibly have in common?

Ever heard of “Windowing”? Yeah it’s this cool new thing some signed artists are doing that lets them feel like they have some control over the business aspect of their music.

Basically these artists figure that delaying the release of their music on streaming services like Spotify and what’s that other one again? Oh yeah; Rhapsody, will lead to increased downloads on online stores like iTunes. There is not any evidence that this is true really, and if anything an artist that isn’t already a filthy rich millionaire probably just wants their music as available as possible, but anyways in my humble opinion I think the whole idea is another crap way to play around with the industry cause we’re bored with it.

All I mean is that the general population will not substitute a streaming service for an iTunes download. They will substitute it for a listen on YouTube, or Grooveshark, or a download from a BitTorrent site. It has been like 13 years since Napster and people still have not seemed to figure this out.

Another good point brought up by Ken Parks CCO of Spotify out of New York is that the people that are paying for Spotify are kind of getting ripped off with a late release and the last thing you want to do is rip off your fans. I’m not a fan of the bastard after hearing him speak at Rethink in Boston, MA. last August but he does make a good point here.

On the other hand the Track Record for artists doing this is pretty impressive so who knows, it might be valid. I’d like to think the general public isn’t so easily pushed into a market but who knows. People like Paul McCartney, Adele, Coldplay, Deadmau5, and The Black Keys are all taking part in this idea. And Adele and Coldplay had 2 of the top 5 selling albums this year.

I say get the music to your fans in every way you can. If it brings in any income then it’s only a bonus. The real money is in live music and merch anyways.

Phillip Richard

————–

I want to know what you people think of Windowing. Do you think that delaying the release of music on streaming services can help significantly increase the total number of downloads? Take into consideration the different levels of fame an artist has because that definitely plays a factor. But yeah comment and share your thoughts.

Sources and Additional Links:

<http://www.fastcompany.com/1818163/rhapsody-spotify-netflix-and-28-day-waiting-game>

<http://www.prefixmag.com/news/spotify-lashes-out-at-artists-windowing-their-musi/62552/>

<http://www.fastcompany.com/1821063/spotify-exec-ken-parks-windowing-mind-boggling-very-bad-hostile>

<http://www.digitalmusicnews.com/permalink/2012/120925deadmau5>