The New Streaming Era
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Whether it’s in your car, or at home relaxing, almost everybody listens to music sometime during the day. While listening to music is extremely common, the source of the music greatly varies.
Since its debut in 2003, the iTunes store has accumulated 800 million credit card numbers, resulting in 800 million accounts on iTunes. Although Spotify only went live in 2006, it already has 50 million users. Of those 50 million, 12.5 million subscribe and pay $120 a year. While iTunes is clearly taking in more money than Spotify, the purchase of physical CDs and digital downloads is dwindling and streaming music is taking over.
Although Spotify is an extremely popular way to stream music, some top artists are not as crazy about it. Taylor Swift, hot pop artist, recently removed her music from this site due to earning less than $500,000 this past year. However, Spotify CEO Daniel Ek claims that if the singer had not pulled her music she could have made at least $6 million in the coming year. “The facts show that the music industry was much better off before Spotify hit these shores,” says Scott Borchetta, the CEO of Swift’s record label in an interview to CNET.
Swift is not the only one pulling her music from Spotify. Many country artists including Jason Aldean, Justin Moore, and Brantley Gilbert have removed their music as well. After taking his latest album off Spotify, Aldean told the Boot in an interview that he did so because he feels that his producers, songwriters, and other contributors should also be paid fairly.
As Spotify continues to grasp the attention of users with its cheap price for many songs, many artists are beginning to feel that the users might be the only ones benefiting from this new streaming era. If this trend continues, and more artists begin to remove their music, the future of streaming might not be as successful as users have hoped.
*Sources include Digital Music News, Bilboard Biz, CNET,and the Boot*