Wednesday, October 16, 2013

Spotify And Pandora Pros And Cons

Streaming music is taking off and predictions are that its 29 million worldwide paying subscribers will grow to at least 191 million in 5 years (I think it will be more). In the meantime, Spotify and Pandora are the big dogs on the block for the moment (expect iTunes Radio to take that mantle soon). Here's a pretty good set of pros and cons between them, courtesy of The Music Bed.

Keep in mind that the above is from the consumer's point of view. There's a whole different set of pros and cons when it comes to the artist and songwriter, but it mostly stems around the fact that the royalty rate is so low. Keep in mind that if the number of paying subscribers raises by the factor of 6 as predicted, so will the revenue streams to artists.

It's probably not possible to get a higher royalty rate from streaming services in that few of them make money as is due to the already high cost of the content. That said, the tiny royalties won't be so small with a lot more subscribers on board.

Follow me on Forbes for some insights on the new music business.

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Check out my Big Picture blog for discussion on common music, engineering and production tips and tricks.


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