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

Microsoft announces Xbox Music

Microsoft is the latest name to be added to the list of companies competing in the digital music arena – The company announced their new Xbox Music service earlier this week, featuring the usual perks digital music companies are offering, with a few twists:

– The free streaming service claims it is one of the largest digital music catalogs on the planet, going so far to boast that you can “listen for over 80 years and never hear the same song twice.” This may be of huge interests to current users of Pandora, sick of the same songs played over and over again on certain stations.
– Cloud connected, so users can sync their Xbox Music Pass collection and playlists across your tablet, PC, phone, and Xbox 360 (currently, you can sync iTunes to the cloud, but iTunes is not also a streaming service),

Xbox Music will ship free bundled on every new Windows 8 PC. The basic paid Xbox Music Pass service will cost $9.99/month (similar to most other streaming services) and $99.99/year. Xbox Music will replace Microsoft’s previous failed attempt at the digital music sector, its Zune music service. Speaking of Zune, I find it hard for consumers to become interested in trying Microsoft’s new service because of negative associations with Zune. I find it likely that only consumers that purchase a new Microsoft computer may ever try the service, and only consumers that already have Xboxs may actually use the paid service. Also, I find the video very unsettling in terms of brand image and target market. The video feels very bland, uninspiring, and on top of this all, the unoriginal logo for the service makes an overall unenticing package – At least for me, personally (a Mac user, nonetheless).

What do you think, does Xbox Music have a chance at the digital music market?