Spotify: Label Execs May Not Love It, But Indie Bands Do

Posted Feb 5, 2011

Spotify is a free music streaming service that is very popular in Europe, but has not made it far in the U.S. scanned the Internet to find some reviews. It appears that record label executives have mixed feelings, but indie bands favor it. Below are some of the reviews that MetronomeReview found:


Exec 1: “Our income from iTunes, Beatport, emusic, Amazon etc is pretty good.
The income from Spotify is MICROSCOPIC – LAUGHABLE – PATHETIC.
The fact that haven’t been sufficiently called out on this is a SCANDAL.
Spotify are old school monopoly capitalists masquerading as painfully hip young “edgy” entrepreneurs. Their game plan is to devalue music 10 – 20 fold and then swallow it up like Pacman.”

Exec 2: “I’d like to add: that as someone who deals regularly with royalty reporting from Spotify and several other digital partners that Spotify goes to GREAT lengths to simplify and make this process as transparent as possible to their right-holders. The business model can be, as Mr. Ek points out, ?slightly complex? and they have seemingly no interest in adding complexity.
They are a great partner and a real asset to the entire space.”

Exec 3: “Far as I can tell, this is another scheme for for technology entrepreneurs to stuff their 401K’s and well paid salary for many years until the business falls apart. Then, based on their ability to raise money in the past, they will start up another company, raise millions and waste our time again. Cookie Marenco Blue Coast Records”


Band 1: “Spotify *do* feature unsigned artists – my own band, The National Pep, are on there, and our label is a CD burner and my mate’s printer. All you have to do is sign up with a distributor like , who then act as the ‘label’. And 50% pro rata of ad revenue seems reasonable enough to me – if it’s not a sustainable business model, it won’t be made more so by paying more than 50% of the ad money, will it?”

Band 2: “I am an artist, i have my album on Spotify through Ditto Music
I am aware i may not see much of a return from it but on the other hand i have had several people contact me through myspace saying they first heard my music on Spotify. It does come down to ownership but being an artist has never been so excited and major labels no longer decide what gets released and what doesnt!”