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Get Ready For The Streaming-Music Die-Off; ReadWrite
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8th December 2013
Old 8th December 2013
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Get Ready For The Streaming-Music Die-Off; ReadWrite

Get Ready For The Streaming-Music Die-Off; ReadWrite

The streaming era is the next music industry ice age.

Beyond their broken business model, these companies share a lot of dubious promises to investors, shareholders and artists. Rdio hopes to get in the black by luring in more ad-supported subscribers. Spotify promises that when it scales up to 40 million paid users—it’s currently at 6 million—that artists will get paid five times what they make from the service today (the math works out, but that 40 million figure is a big “if"). Pandora, unprofitable and crippled by royalty fees as its user base grows, promises that mobile ad revenue can offset the revenue it’s hemorrhaging.
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