Am I wrong or is Spotify going to have to charge all its users at some point?
December 23, 2012 10 Comments
Spotify has basically ruined the economics of music-buying for me (in a ‘good’ way, short-term, but read on). I don’t even think I would consider ‘buying’ a music album anymore. That’d be a ‘waste’ of my money, because whatever it is (with some negligible exceptions), ‘I could just listen to it on Spotify anytime I want’.
Now, that’s great for me. I’m literally saving hundreds of dollars a year. But how is anyone making money, musicians or greedy music execs? I have to imagine the existence of Spotify is having the same effect on other former-music-buyers. And the current generation of tweens/teens growing up to be music fans, aren’t even forming the habit of buying music in the first place. ‘It’s on Spotify.’
So, that can’t continue, right? What’s going to have to happen, at some point in the near future when Spotify/The Powers That Be have determined that Spotify’s market (for lack of a better term) penetration is big enough, is that Spotify is going to slap a fee even onto all of its ‘free’ users.
Yes, X% will revolt and cry foul and curse Spotify and vow to never use it again, but (1-X)%, having gotten the Spotify habit, will acquiesce and pay, and that tradeoff will be worth it to The Music Industry, so they’ll do it.
Because if they don’t, isn’t the music industry going to just shrivel and die? What am I missing?