Is this the Spotify smoking gun?

SXSW 2012 logo

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.

Advertisements

2 thoughts on “Is this the Spotify smoking gun?

  1. Actually, my view was that we should support the Spotify model. The only thing I’m defeatist about is major label accounting. – Nick

    • That’s your prerogative Nick, i’m merely quoting you. I doubt if many artists would support the Spotify business model. Spotify is owned by the major labels, they could easily change the way the accounts are organised to give the service some integrity.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s