Another Day At The Office: Streaming Music
Streaming Music: “Bad Deal” or is it the Next Big Thing?
Radiohead’s front man Thom Yorke was repeatedly the focal point of the media after stating that streaming services are ‘a bad deal for new artists’. A couple of weeks ago, Yorke announced that his non-Radiohead albums ‘The Eraser’ and ‘Amok’ will be pulled down from Spotify’s library.
A well-known argument, that’s been used by many bands and artists, is that services like Spotify, Pandora and Deezer don’t pay enough royalties. Revenue, for bands, is crucial when it comes to investing in careers and making new music. For this reason, the streaming services would be deemed as an unsustainable business model.
Besides this, upcoming bands face the hardship of only getting a smaller piece of the pie when it comes to catalogues. Big record labels, with over 40 years of repertoire, would take the bigger piece of the pie of all royalties that are being paid, as opposed to upcoming talent who struggle harder to generate the attention that they need.
Spotify’s response to this was an insight in how much money would be paid to rights holders in 2013 (USD 1 billion*). Not only will Spotify pay this amount, furthermore the company is growing rapidly and concurring the world as more countries are being served day by day. Streaming music appears to be a great alternative to illegal downloads, as well as being a means of reaching people that do not have the financial means of purchasing CD’s (Deezer is especially strong in Africa, Latin America).
Black Hole Recordings chooses to make their catalogue available on streaming services. Of course, we respect bands and artists that do not want to be part of it; each artist must decide for himself if streaming is right for their music.
We support streaming for several reasons, one of them being that it’s a great alternative for illegal downloading. We would recommend to put content up for streaming, because we believe that Not giving your audience access to your music on their preferred (legal) marketplace has too many negative effects. If you make music and you want people to enjoy it, we say try out streaming and you'll see that the Next Big Thing has arrived. Over the past years streaming has proven itself as a means of consumption that can be very profitable. By not granting streaming rights, you don't 'win' extra download sales or CD sales, but you loose a little bit of the 'likeable' artist you want to be. People want to enjoy music, not receive sort of a lecture on where to buy or where not to buy. In our opinion, not making your music available for streaming hurts your image more then it does profit to your short term download, CD or vinyl sales. We embrace it as the Next Big Thing; for us streaming is yet another step in making people worldwide enjoy music in a digital, social environment.
Go check out our Youtube Videos here
Bas Kruijssen, New Media & Marketing Manager Black Hole Recordings
Follow Bas on twitter