Streaming under scrutiny

Published on Dec 4th, 2009 by  

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The legal streaming music library Spotify had no problem finding its way into the hands of music-hungry consumers this year. Its intuitive interface and huge catalogue of music made it an instant leader in digital music services.

So it’s inevitable that with success comes scrutiny as commentators attempt to analyse and figure out exactly how Spotify is able to stream such a huge range of music and still afford to operate. It was no surprise really when it was reported in August that major labels owned a combined 18% share in the company.

In Spotify’s native Sweden, the newspaper Expressen claimed that Lady Gaga only earned €113 from one million streams of her ‘Poker Face’ single on Spotify. That has since been refuted by the company who said that figure only refers to a fraction of what Gaga would have received from Sweden’s performing rights society in that country for one period before they actually launched. “Specific payments are of course confidential, but this is certainly wide of the mark,” said the statement.

Staying in the land of Swedes, it seems that the population is serving as a case study for the music industry in general. A report from the record labels association IFPI Sweden says that music sales are on the rise again in Sweden with revenues up 18% in the first nine months of this year after seven consecutive years of decline. Spotify and the tightening of anti-piracy laws are being hailed as the main reasons for this sudden rise.

Which may be good news for proponents of the three strikes rule here in Ireland and the Digital Economy Bill in the UK though they have been dealt a blow thanks to the European Parliament. Eircom’s agreed plan with IRMA to ban internet users found to be downloading copyright-infringing content may have some opposition in the form of a newly approved telecoms package which gives greater protection to consumers.

Eircom and IRMA’s private “three strikes” deal to disconnect users does not currently guarantee a fair and impartial judicial review before a user’s connection is revoked. This would conflict with the “rights and freedoms which have become part of Europe’s values since the French Revolution,” according to Vivane Reding, the European Commissioner for Information Society and Media.

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