Universal using licensing renewal negotiations to get Spotify to cut back on free streaming

Universal using licensing renewal negotiations to get Spotify to cut back on free streaming
According to a report in the Financial Times, Universal is using license negotiations with music streamer Spotify in an attempt to get the latter to reduce the amount of free music that it streams to subscribers each month. The global entertainment conglomerate, which owns the largest music company in the world, is blaming free ad-based music streaming for the decline in sales of recorded music from online stores like iTunes.

Spotify is also facing competition from Apple, whose new streaming music service is expected to launch later this year with the release of iOS 8.4. Apple is seeking to renegotiate lower fees with the music providers, including Universal Music Group, in an attempt to undercut Spotify's $10 a month paid service.


Universal is trying to use its leverage with Spotify to force the latter to develop a plan that would migrate free listeners into the paid subscribers' category. Those streaming via Spotify for free cannot choose the titles that they hear using the mobile app, and cannot use the app offline. But Spotify fears that by making its free streaming tier more restrictive, users would leave for YouTube which offers practically no limits on music. And the streamer also says that it is wrong to blame it for the declining music downloads on iTunes, saying that the subscribers it is monetizing are those who never paid for music before.

source: FinancialTimes (registration req'd) via Telegraph.co.uk, Engadget

FEATURED VIDEO

8 Comments

1. DirtyDan23

Posts: 280; Member since: Aug 12, 2014

Nifty

2. JaneChenLong

Posts: 374; Member since: Mar 18, 2015

Maybe universal is the one that charging too much and need to understand that people don't want to spend too much money on them anymore.

3. ruckus757

Posts: 7; Member since: May 24, 2014

Maybe if CDs and other music wasn't $10-$18 plus for an albulm or if artists put out music that people like and not half added albulms just to make money. I'm sorry but musicians are entertainers I get that buy do you really need those "10 bedroom houses with 5 cars " and all that no. People stream on Spotify because albulms now a days only really have 5 or 6 songs out of maybe 13 or 14 that are good. If they put as much work into each song as they are with this case with Spotify then they would have more sales. But people don't trust the music industry anymore

4. DeusExCellula

Posts: 1390; Member since: Oct 05, 2014

Lol? who buys music anymore.

5. bucky

Posts: 3774; Member since: Sep 30, 2009

I highly recommend spotify to anyone. If anything, spotify is taking away from the need to pirate. I stream pretty much everything now off of spotify.

6. AppleIsGod

Posts: 56; Member since: Aug 27, 2012

Spotify can do anything with they want with their business model but I will take my business else where...

7. steodoreben

Posts: 379; Member since: Sep 26, 2013

SPOTIFY is like a PIZZA. PIZZA = LIFE. :3

8. xperian

Posts: 417; Member since: Apr 10, 2014

I'd just go back to downloading mp3

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.