Music Industry Tries New Tactic to Boost Sales

As we reported a few days ago, streaming music is at an all-time high, and premium streaming fees are even outpacing CD sales.

However, there’s a movement in the music industry to “kill off” streaming, particularly free streaming. One suggestion is to make the free product less appealing, forcing people to upgrade to the paid service. However, as Fletcher Babb reports on

“At a 2013 conference unveiling Spotify’s newly unlimited mobile services, [Spotify] CEO Daniel Ek said ‘We’re giving people the best free music experience in the history of the smartphone. And the more you play, the more likely you are to pay.’”

The tactic seems controversial, and it’s one that Jim has warned against in the past. In his post, You Can’t Kill Demand for a Product By Giving it to More People, he said:

“At one time, musicians thought records would destroy the value of live performance. Record makers thought radio would destroy the value of records. Movie theaters thought VCRs would destroy movie sales. In all of these cases, and many others, greater and more freely available access to these products made people want these products more.”

Do you think the future of the music industry’s revenue lies in paid streaming?

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