Spotify is currently involved in some tough negotiations over licensing, which couldn’t come at a worse time for Spotify, as the front-runner in the music streaming industry is being chased by rivals such as Apple Music and Amazon.
The Financial Times has reported that new high-profile releases may be subject to what is being called a “windowing period, where only paying premium users will have instant access to these albums.
This new deal is over licencing is important for Spotify as they are trying to cut the parentage of royalties that they are paying to the music rights holders.
These payments have already struck controversy with artist and labels, as some have complained about the amount Spotify plays generate. Streams are reported to be worth around $0.006 each.
Currently Spotify pays 70% of its streaming revenue to labels – which is already below what Apple Music pays at 73%.
With Spotify and music executives believing there is not a large enough difference between the free and paid services, this “windowing” period which will prevent free users from streaming the latest albums and releases may be enough to force users into paying for their subscriptions.
Although we don’t agree with exclusives or this windowing period to entice (or force) users into paying for their subscriptions, an unnamed label executive told the financial Times that ‘windowing’ “could be perceived as a concession, but in a sense, [Spotify] really doesn’t have a choice” but is in the industries best interests for Spotify to succeeded to stop Apple Music from being the “only player in town.”
Find What You Like allows you to link your Spotify, Deezer, Soundcloud, and YouTube accounts. So come and join the FWYL community, to search, create, and listen to free music playlists.