Why Spotify is not Netflix (But Maybe It Should Be)

/ Pulsar redactor's note : this is a resume of the offical article to highlight important fact we have to face in nowadays music industry. Artists have rights that they are able to defend. See full article on link below /

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Readers will note the film business has not bought into the faulty logic that the only way to combat internet piracy is to make every film ever made, available instantly, on an all you can eat service for $9.99 a month. Some might argue that is what Netflix is, but people making that argument are obviously not current subscribers!

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Generally speaking films arrive at Netflix last in the distribution chain, if at all. This is a problem for Netflix in a lot of ways so they have responded to this by

1) offering competitive advances to film producers to get films earlier (generally in the cable window)

2) they have begun investing in producing original content to differentiate themselves from the competition (this strategy worked particularly well for HBO).

... Likewise, perhaps Spotify should provide funding for the financing and development of new artists.

So here is the question, is the record business really utilizing the new digital platforms correctly to address the current market place?

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FILM RELEASE WINDOWING

The movie business releases films in what is known as “windows”. A typical feature length film is generally released in a pattern that looks something like this:

1 Film Released in Theaters 2 Film Released later on Video on Demand (Rental) 3 Film Released later on Cable and/or Broadcast 3 Film Released Later on Home Video (Rental and Purchase) 4 Film Released Later on Netflix (Subscription)

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RECORD RELEASE WINDOWING

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Generally speaking, a historical record release “window” looks like this:

1 Radio Airplay prior to a commercial release of the single 2 Commercial Single Release 3 Album Release at Full List Price, but “Discounted” at Retailers

Today, these traditional old physical model windows built around pricing incentives don’t really make sense on digital platforms.

... So if record release windowing is not based in pricing incentives, perhaps it should be based inaccessibility incentives.

DIGITAL PLATFORM MUSIC RELEASE WINDOWING

What comes next is the starting point for a discussion to break free from much of the current controversy over whether or not Spotify is fair and sustainable. It is an attempt to rethink the digital music distribution landscape in the same way the film business has with varied consumer offerings and options.

We’d love to see some new players in the marketplace for music that function much in the same way that Vudu or Cinemanow do for films. These would be transactional streaming rentals.

1 Single Release Digital Transactional Download 99 cents 2 Single/Song Release Digital Transactional Streaming Rental 10 cents for 24 hours 3 Album Release Digital Transactional Download 9.99 4 Album Release Digital Transactional Streaming Rental $1 for 24 hours 5 Select Songs Released to Subscription Streaming Services, not whole albums. 6 Album Release Subscription Streaming Services

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If every decision we make is based upon the extortion of illegally operating and infringing businesses, surely we will pay the price in a race to the bottom where eventually everyone loses except the companies getting our labor for next to nothing.

Read full post on Thetrichordist

#Market #Streaming #Sales #Spotify #App