Wednesday, 12 August 2009

Do Spotify need to Diversify?

As we prepare for the eagerly awaited Spotify iphone application which will no doubt be fun, I’m not sure with Spotify as a business model.

One of the great things about the popular iTunes model is that it's about choice, ease of use, and has done great things for an industry sadly in decline.

With Spotify providing a limitied choice of music, adverts that will no doubt further increase the more we tolerate them, is sure to turn off the fanbase that’s currently using it.

From a personal point of view and a big muso, advertising between tracks is infuriating and the fact that many major artists tracks won’t be there (but the BBC orchestra versions will be) will be a struggle for this business model. It almost makes sponsorship deals like Avril Lavigne and Burger King, Pink and Coke look a more likely way to provide funds for artists outside of merch and touring.

It may be of interest that Spotify streams on its free service at 160kb/s and you have to pay for 320kb/s through the Spotify premium package at £9.99 per month. Surely then Napster is the best model, as you can own the music using its monthly service for £9.95.

Artists which have got behind Spotify appear to have lost the plot, surely by taking customers to iTunes or Napster encourages much more revenue, choice and the music is easily available for adding straight to your mp3 player, machine or iPhone?