Over 200 record labels withdrawn from Napster and Spotify
More than 200 record labels are set to remove their content from Napster and Spotify, blaming the music services for harming digital revenues.
The move comes after STHoldings, a distributor of 238 record labels, announced it would be pulling its content from the services.
STHoldings said in a statement today that it has "concerns that these services cannibalise the revenues of more traditional digital services".
The company handles distribution for some of the most influential labels in dance music such as Prolific, Boka and Hessle Audio.
The statement from STHoldings said it had the full support of the vast majority of its labels: "As a distributor we have to do what is best for our labels. The majority of which do not want their music on such services because of the poor revenues and the detrimental affect on sales." Only four of the 238 labels represented have asked to remain on the streaming services.
A recently released study by NPD Group and NARM, shared with Digital Music News, which suggested services such as Spotify "increase access but decrease spending".
Coldplay recently decided against putting its latest album on Spotify and subsequently enjoyed record sales.
Whether this marks a slow shift away from streaming services, especially by smaller labels, remains to be seen.
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Comments
I have been amazed how little of a new album I actually listen to since getting Spotify Premium as most new albums, like somebody else said, have 2-3 good songs then the rest is dross.
This is a last ditch attempt by a struggling label to to try to increase revenue when in fact they are better off with the Spotify/Napster model as they don't actualy have to make anything physical.
Coldplay annoyed me because all their old albums are on there! Why don't they take them off too maybe do us all a favour at the same time!
Adele did to but I had already bought the album, I would have just borrowed it!
Its a last ditch attempt to avoid the inevitable.
I don't use Spotify because the way the record labels work with Spotify is detrimental to the revenue the artists receive.
Spotify pays the labels for whatever Spotify streams, but the labels don't always pass any of this payment on to the artists. When they do pass it on, then it is a much smaller percentage than regular contracts between labels and artists.
I would like to see Spotify stand up to the labels and demand that a bigger percentage of royalties goes to the artist.
In fact, it is time payments went direct to artists, who then give a small percentage to the labels. Then priorities would be correct.
Otherwise, I agree with many here, saying how services such as Spotify, Napster and even Pirate Bay actually expose people to more music and people go out and buy just that more music they just got exposed to. Maybe not as CDs, as they are generally compromised by the loudness war and may have duff 'filler' tracks people don't want. Sales of CDs are going down, not because of piracy, but because of rubbish quality of CDs, but sales of tracks are going up.
Where some quality is still around and being reintroduced, as in vinyl releases, then we see sales growing year on year, not just of vinyl but also the gear needed to play vinyl, like turntables etc..
I'm dreading something happening to Spotify - it may not be a lot of money to buy a few albums or a few tracks. But people don't listen to just a small amount of music a lot - or at least I don't. I listen to a portfolio of things depending on my mood so a collection of thousands of tracks from different genres.
Although I have built up a collection of CDs in my time and do purchase my favourite music, Spotify has been such a profound impact on experimenting with new artists and then make the decision to actually go and see them play. I can also introduce others to those bands and they gain popularity.
But I listen to them once per week/month, etc. To purchase these tracks would cost THOUSANDS of pounds! It's NOT a case of Spotify is stopping me from spending that money; that money would not be spent because I do not have that money available to spend on music. The benefit to artists is their music spreading and indirectly making more money through tours or further music sales.
It's also massively convenient - be able to listen to music on different computers. Spotify is a fair service at a fair price - music labels seem very greedy to me because the number of people that can now potentially buy and listen to these songs is greater than ever before. If songs were cheaper, it would become feasible to purchase them...
STHOldings cannot hold off what is inevitable. Itunes distribution model may look alive and well now but is dead in the long run or, at least, forced to bleed market share to alternative forms of distribution. Spotify has had issues with the percentage transferred to artists (in Denmark, for instance) but its overall concept is superior. Conceptually, there is no difference between an LP a CD an a MP3 but there is a world of difference between these on one side and streaming on the other.
These record company guys are stuck in a rut and seems to want to cling onto the 'good old days'. CD sales are declining rapidly and streaming services such as spotify are gather pace rapidly. Delivery of music is changing and unfortuantely these guys can't really stop that.
I too have been using premium Spotify to listen to new music. Since I've had this it's really opened up my mind to new tallent. But the point is that I will go out and buy the songs I like. I got fed up with buying CD's where the artist/record label thought they could get away with making 2 decent songs on an album and the rest dross.
I don't buy from itunes because the quality is rubbish. So at the moment I'm not buying anything. So, that is a dillema for the record companies surely?
I have not been buying too many records in the past few years (2 or 3 per year) until recently when I joined Spotify’s premium service: exploring new artists encouraged me to buying those records I really wanted to keep for my collection. Now I am buying around 1 or 2 albums per month normally after listening to them in Spotify. I do not know these distributor guys’ big numbers, but their equation will not add up from my end.
So this month we have Apple launching Match and Google Music. With these two heavyweights in bed with the music labels, is it suddenly no wonder that Spotify is being squeezed? Looking into my crystal ball, I can see the value of Spotify falling until facebook come in to buy it. Then, surprise surprise, the music labels will suddenly make piece.
You heard it here first!
what they think they are going to earn more million $$$$$. Some artists snuff too much, nothing anymore and then they would be better to attack records mafia, and even those rights organizations, they will see more money and create there own label. spotify also would give more than the artists. but they look too much through their rose-colored glasses, they must understand that economic model is bankrupt. There client are not stupid anymore or they find a solution by using spotify or they getting no dollars anymore byebye villa, castles, private attraction park.
I agree it is disappointing news. I have been introduced to more new artists and have bought more music as a result of the Spotify service than at anytime before. I won't buy an album on spec without listening to it first so I won't be buying Coldplay's new album. Though I'm sure they're not going to lose any sleep over that
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Well, I won't miss the dance music but I am always disappointed when albums disappear from Spotify
as a recent subscriber to the premium service, i would say that my spending on music (hardcopy not dl) will increase as i discover new music from artists i've never considered or even heard of. spotify is great for background listening but, i believe it still can't compete with cd (or lossless rips) for quality when serious listening is involved. how many labels in genres other than dance are affected i wonder?