Warner to quit free music streaming
Published: 10th Feb 2010 13:03:50
Record label Warner Music is to stop licensing its songs to free online music streaming services.
Companies like Spotify, We7 and Last.fm offer free, legal and virtually instant access to millions of songs.
Warner, one of the four major labels, whose artists include REM and Michael Buble, said such services were "clearly not positive for the industry".
That raises questions over the future of free streaming, which is popular with fans but not lucrative for labels.
Spotify has seven million users in six European countries and is in negotiations to launch in the US.
Ninety-five per cent of those fans use its free service, hearing adverts between songs, while 250,000 pay a monthly fee to get it on a mobile and with no ads.
Two-and-a-half million people in the UK use We7's free offering, while Last.fm is also free in the US and UK.
Other popular audio services include Deezer, Pandora and Grooveshark, while YouTube, Vevo and Muzu offer music videos for free.
Warner chief executive Edgar Bronfman Jr said: "Free streaming services are clearly not net positive for the industry and as far as Warner Music is concerned will not be licensed.
"The get all your music you want for free, and then maybe with a few bells and whistles we can move you to a premium price strategy, is not the kind of approach to business that we will be supporting in the future."
It is not clear whether Warner will remove its music from existing services or decline to do deals with new outlets.
He said the focus would be on promoting streaming services that require payment, which could appeal far beyond those who currently pay for downloads in stores such as Apple's iTunes.
"The number of potential subscribers dwarfs the number of people who are actually purchasing music on iTunes," Mr Bronfman said.
Fans could pay a monthly fee direct to a streaming service, as with Spotify, or get access to the music as part of a deal to get a new a mobile phone, broadband connection or another gadget.
Such subscriptions could be taken up by "hundreds of millions if not billions of people, most of whom are not today either buyers or certainly heavy buyers of music", Mr Bronfman said.
And they would be much more profitable than per-track downloads in the long term, he added.
The main legal streaming services have deals with most major and independent record labels and pay royalties for each song played.
But the amount is far less than a label would earn if that song was downloaded or if they got a slice of a listener's monthly subscription fee.
At 12:58:39 in EnglandA poem about the killing of PC Keith Blakelock during riots in north London was written by the man accused of his murder, a court has heard.
At 12:58:21 in SportKent have announced a pre-interest and pre-tax profit of £156,778 for the financial year to November 2013.
At 12:56:04 in ScotlandA hamster has been found abandoned inside a plastic play tube in Edinburgh.
At 12:55:09 in BusinessThe sometimes fraught relationship between leaseholders and their freeholders is going to be investigated by the Office of Fair Trading (OFT).
At 12:54:04 in HeadlinesIndia's Supreme Court has ordered the continuing detention of businessman Subrata Roy and asked his firm to come up with a plan to repay its investors.
At 12:53:21 in SportCrystal Palace winger Jason Puncheon has been fined £15,000 by the Football Association and warned about his future conduct for Twitter comments he made in relation to former boss Neil Warnock.
At 12:52:43 in HeadlinesA second witness at the murder trial of South African athlete Oscar Pistorius has told a court in the capital Pretoria she was awoken by the sounds of a fight early on 14 February 2013.
At 12:42:01 in PoliticsThere is a risk that "deliberate provocation" could give rise to a dangerous incident in Ukraine, Foreign Secretary William Hague has warned.
At 12:41:48 in EnglandA residential treatment programme for addicts which closed in Yeovil is to reopen after the charity running it merged with another organisation.
At 12:40:03 in ScotlandPolice Scotland has exceeded its target to recruit 1,000 additional officers.
Harvard CitationBBC News, 2010. Warner to quit free music streaming [Online] (Updated 10th Feb 2010)
Available at: http://www.ukwirednews.com/news/36156/Warner-to-quit-free-music-streaming [Accessed 9th Mar 2014]
News In Other Categories
Two hospitals missed opportunities to take action against a consultant breast surgeon who was performing unnecessary or incomplete operations, a review has found.
With the doors to its brand new £1million training centre officially open, one of the UK's leading apprentice training providers, Bristol based S&B Automotive Academy, is showcasing its world-class facilities by launching a series of foreign student exchanges for the first time in its 41-year history. To get a flavour of what life is like as an apprentice in the UK, the Academy hosted 16 apprentice engineers and bus drivers from the G9 Automotive College in Hamburg, Germany, as part of a Europe-wide vocational training initiative called the ‘Leonardo Programme’ with support from the European Social Fund. In a reciprocal arrangement, S&B will be sending nine apprentices to Germany during February 2012 so that they can get an appreciation of life in the automotive industry on the Continent. A further three German exchange groups are being planned for next year. Designed to assist the development of vocational skills and training across Europe, including work placements for trainees, the Leonardo Programme has a budget of €1.75bn, which is helping to encourage UK organisations to work with their counterparts abroad. In what is expected to be another challenging year for employers in the UK automotive sector, S&B’s Chief Executive, Jon Winter, claims that the exchange initiative will bring many benefits to the Academy and its apprentices: “In a world of global automotive brands, it’s important for our learners to understand the international context of the industry they have chosen to make their career. This new exchange programme will enable apprentices and Academy staff alike to achieve a better understanding of the challenges and opportunities within the automotive arena in Europe. With the Academy’s influence also extending to the USA and Asia, there’s every possibility that this initiative could move further afield in the future.” Continued Winter: “The need for skilled technicians across the world is on the increase and we actively encourage our apprentices to look at broader horizons during their training. Many of them have already learned the phrase ‘Vorsprung durch Gelehrtheit’, quite simply, ‘Advancement through learning.” In the 2010/11 academic year, S&B doubled the number of successful Apprenticeships over the previous year with some 350 apprentices graduating from the Academy. At the same time, achievement levels reached an all-time high with an overall success rate of 85%. For those learners on the Advanced Apprenticeship three-year programme, success rates were even higher, at over 98%. PHOTO CAPTION: As part of their exchange visit, S&B Automotive Academy arranged for the German apprentices to visit Hampshire bus operator, Bluestar, at its Barton Park depot. The students are pictured with S&B’s Andy West (3rd right) and Steve Prewett, Bluestar’s Area Engineering Manager (2nd right). Ends http://www.sandbaa.com
A man in his 40s has been injured during what is believed to have been an attempted armed robbery in County Down.
Fawlty Towers star Prunella Scales has "a sort of mild Alzheimer's", her husband Tim West has revealed in the Radio Times.
A hamster has been found abandoned inside a plastic play tube in Edinburgh.
The law needs to be changed to stop ticket touts overcharging fans ahead of the Rugby World Cup, an MP has said.