Well I didn’t really expect confirmation from SXSW but it now looks as though Spotify have been found out. A ‘Pennies from the Celestial Jukebox’ panel at SXSW found that they don’t really consider artists in their business model.
Attorney Edward Pierson outlined the desperate reality of the new streaming economic model. “We’re not talking about pennies, but pieces of those pennies,” he said .
Artist manager Nick Stern somewhat sidestepped the problem saying “Its not a problem with the economics of Spotify, it’s a problem with the economics of the music business.”
So the fact that the major labels are in bed with Spotify does tend to produce strong rodent odours.
Stern’s defeatist view that it would be stupid to fight the Spotify model is naive in the extreme.
This excellent article on the tragic situation by Greg Kot can be found here.