The music industry still has a stranglehold on digital music.
Pandora and Spotify Rake in the Money and Then Send It Off in Royalties
At least 33 million people have tried Spotify, more than 150 million have registered for Pandora…Both are losing money, and for largely the same reason: the cost of music royalties. Pandora…in its most recently reported quarter lost $20 million on $81 million in revenue. Spotify’s accounts…show that it lost $57 million in 2011, despite a big increase in revenue, to $236 million.
It just seems silly. The music labels are pulling millions from these companies. So, why don’t they negotiate a rate that allows these companies to say in business?
With the announcement of Amazon’s new Cloud Player iPhone app, the Universal Music Catalog is one step closer. For years I have dreamed of this Star Trek-like device, where I can find any song I want and listen to it, from anywhere. Preferably this will be an app on a device I already own (smartphone), rather than a new iPod or something.
Though, I would buy an iPod that had the Universal Music Catalog on it.
You may be skeptical but let’s work through this.
First, all three major online music retailers, Apple/Amazon/Google, give you the ability to upload thousands of songs to their cloud for free or at nominal costs. Which means that each of them has the most massive music catalog you can possibly imagine. They also highly promote the “matching” ability of these mega-drives, which means that they probably already have the song you’re uploading so don’t worry, you can just use their copy.
But, if they don’t have your song then they will store a copy on their drive, a brilliant way to continue growing their catalog.
Second, the details here are awesome. Amazon just announced that if you pay $20/year you have unlimited storage space for music. Google offers space for 20,000 songs for free and Apple is charging $25/year for storage of 25,000 songs. This even includes those mixtapes you’ve been carrying around, rare CD’s, and even live recordings.
Yeah, the piracy debate is dead in the water here. Theoretically, one person could pirate 20,000 songs and then upload them to Google for free, with forever storage.
Ok, I’m not promising anything here but I am 2 for 2.
Both times I received a Spotify invite in my email pretty fast.
The backstory is that Ashton Kutcher is a big fan of Spotify and he tweeted his fanboy-ism. Then his millions of twitter followers were like, “we want to try!”
The company replied by creating an invite page just for him. The perks of being a superstar.
So, if you visit this site and put in your email an invite could be coming your way (may takes a few hours):
An exclusive invitation to join Spotify from @aplusk