According to the New York Post, “two music-industry sources” report that Spotify
is very close to signing a deal with Sony Music and has also linked up with another label, which the Post does not name.
Spotify is not a straight-up subscription service. Users are privy to all-you-can-eat music for free, if they don’t mind dealing with ads (you can pay to nix the advertisements) — and, let’s face it, most of us would deal with ads to get unlimited free music.
According to several sources, the rub is this: U.S. labels just don’t feel comfortable with the freemium model, therefore, they want high cash advances. Consequently, Spotify reportedly balked at fronting the money. Also, Spotify isn’t exactly raking in the dollars; it lost $26.7 million in 2009.
Spotify.com seems like another Pandora Radio which since its inception has failed to discover how to make money. Royalties, and licensing will continue to kill these companies financially.
It’s time for a revolution, music needs to be put in the hands of the artists! With technology these days record labels are no longer needed, all artist should be independent and use the net as their distribution vehicle. Immitter.com is a website that is preparing for exactly that.
Check it out, they’re still in early development so reserve your username/password and prepare for the Revolution!
Thoughts?
