Free Digital Music Mikaylla Brown

Economics of the Music Industry An average user of free, ad- supported streaming services generates revenue of around $4 a year to record companies. A user generated $50 and $75 a year in the record-buying age. Spotify subscribers currently pay $120 a year, of which about 70% goes to record labels and music publishers.

Digitizing the Music Industry Analog vinyl records and magnetic cassette tapes to plastic compact disks Compact Disks to MP3s — Downloading Music Portable MP3 players Napster and file sharing emerge in 1998 Spotify and Pandora replace digital downloading

Is the Free Digital Music Party Waning? Spotify and Pandora allow free streaming accompanied with ads in hopes to lure users to become subscribers million people use various free versions of the service, compared with 12.5 million who pay a monthly fee. Currently free-trails are available without using a credit card number. Major record labels now want music’s subscription services to shorten free-trial periods, increase ads, get customers’ credit card information quicker and invest more in reducing subscriber churn rates.

Taylor Swift is Withholding Music from Spotify Early in November, Taylor Swift took her music off of Spotify. 25% of listeners on Spotify were listening to her songs. She was upset with the amount of money she was receiving — $0.006 and $ per song play. Her new album “1989” is now on the top of the charts. “Music is art, and art is important and rare. Important, rare things are valuable. Valuable things should be paid for. It’s my opinion that music should not be free, and my prediction is that individual artists and their labels will someday decide what an album’s price point is. I hope they don’t underestimate themselves or undervalue their art.”

Youtube Music Key Google’s “biggest music fans” get a free six month subscription $9.99 a month for ad-free music and offline viewing Includes a subscription to Google Play Music

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