Tag Archives: Freemium

Free Spotify and YouTube Users Are Now a Bigger Challenge Than Music Pirates

Nearly 90% of Italian music consumers use YouTube to stream music, which is a problem for the industry. While these people are enjoying music legally, record labels would like to see these people converted into paying customers. – Ernesto, TorrentFreak » https://ift.tt/2xVHNv1

Ad-based music streaming far from dead, research shows

photo: Lexy Savvides, CNET

Revenue generated from ad-based music streaming is expected to hit $782 million worldwide this year, and jump to more than $1 billion in 2016, the research firm said Tuesday. Still, these services — sometimes called “freemium” because they are free to use but make money on advertising — could ultimately boost the number of users who eventually opt for subscription-based services. – Don Reisinger, CNET

Spotify may kill its free service due to industry pressure

Spotify has already refuted the rumors, claiming its free tier isn’t going anywhere. “It’s totally false,” the company told The Next Web. “The model is working.” According to anonymous sources, however, the company may soon simply offer a three-month trial instead of its ad-supported service. After that, you’d be forced to pay for your music or get cut off entirely. One source adds that anyone with a free account at the time of the switch would get a 6-month grace period before needing to upgrade. – Jacob Kleinman, TechnoBuffalo

Netflix Plans ‘Free Tier’ After Absorbing Popcorn Time

Netflix has struck a surprise deal with the people behind PopcornTime.io, one of the leading Popcorn Time forks. It marks the end of litigation threats and a move towards cooperative development. While the price tag is relatively modest at just $11.5m, Netflix has big plans for Popcorn Time that have already been tried and tested in the music industry. – Andy, TorrentFreak

Jay Z’s streaming service isn’t for everybody (i.e. the poors)

“This service is not for everybody,” company CEO Andy Chen told The Verge in October. “Spotify is for everybody. You don’t even have to pay! But for quality, you have to pay.” While Spotify freeloaders belly up to the streaming trough, shoving garbage, 320kpbs-quality audio into headphones so crusted with cannery grime and gizzard grease, they can’t tell the difference anyway, TIDAL users are pouring fizzy aural champagne into the flutes of their ear canals. They also enjoy high-definition music videos, “expertly curated” editorial content from Talkhouse Music, and its own Shazam-like service (which presumably not only identifies the song you’re looking for, but compliments you on your taste). – Sean O’Neal, The A.V. Club

The music industry wants to fight the internet again—and it’s probably going to lose

A generation of consumers who grew up with illicit file-sharing services like Napster have been conditioned to expect access to music for nothing. Spotify thinks that turning them back into paying customers is a delicate process. Erecting pay barriers too soon could turn them back to piracy. As CEO Daniel Ek explained in a blog post earlier this year, “If we want to drive people to pay for music, we have to compete with free to get their attention in the first place.” So the growth of Spotify’s paid service depends heavily on its free option. […] But Spotify isn’t the only one feeling the heat. The industry has been trying to crush Pandora, the free online radio service that music labels think pays them too little in royalties. And there are even hints that they are beginning to turn against YouTube. Up until now, no-one has really been brave enough to take on the Google-owned video upload site, which attracts more than 1 billion sets of eyeballs each month and is very popular for music videos. “YouTube gets a free ride,” bemoans Merlin’s Caldas. – John McDuling, Quartz
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Music labels are reportedly pressuring Spotify to limit free streaming

The labels may seek to limit the amount of music users can listen to without paying up. Or they might hope to limit all free streaming to Pandora-like radio stations instead of on-demand music. Spotify and Rdio both allow for unlimited free on-demand streaming on computers, but limit mobile streaming to shuffled, radio-like services. Paid subscribers get full mobile streaming, offline access, higher quality, and no ads. – Dante D’Orazio, The Verge
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Free streaming is smallest slice of music revenue pie

The major record labels reaped a combined $295 million in revenue from free ad-supported streaming services in 2014, up 34 percent from the previous year, new figures show. Despite the double-digit growth, the freemium model remains the smallest slice of the nearly $2 billion streaming pie, according to a report from the Recording Industry Association of America. […] The number of US paid subscriptions rose to 7.7 million in 2014, up from 6.2 million, and still a fraction of the 115 million households in the US. – Claire Atkinson, New York Post
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