Spotify ‘could be dead within a year’; Napster drops prices

Britain’s most popular music-streaming service could be out of business within a year unless it can make more of its users pay for music, industry experts claimed today. Senior executives said that Spotify could soon be “dead” if it continued to be available free and relied on advertising to fund the service.They were responding to claims made by Spotify’s founder Daniel Ek, who in Daniel Ek, who in a letter to The Times and published online today said that the industry had fundamentally to change the way firms charged for songs. The service allows users free access to millions of tracks — from Lily Allen to Shostakovich — if they are put up with regular adverts. Premium subscribers who pay £9.99 a month can listen to tracks ad-free, as well as synchronise playlists with their mobile phone and listen to songs when their computer is not connected to the internet. But less than 10 per cent of the service’s two million UK users are believed to have chosen the subscription option.
http://technology.timesonline.co.uk/tol/news/tech_and_web/article6866734.eceAlso see:Napster offers cut-price service
Napster has relaunched its service, offering unlimited music streaming plus five MP3 downloads for a £5 monthly fee.A similar deal sprung up in the United States in May for $5 a month.The move comes hot on the heels of the growing popularity of rival websites like Spotify and We7 which have recently built up a huge following.
http://news.bbc.co.uk/newsbeat/hi/technology/newsid_10000000/newsid_10002200/10002252.stmSpotify earns more than £1m a month from subscribers
Music streaming pioneer Spotify earns more than £1 million a month from its premium subscribers, OUT-LAW.COM can reveal. Earnings could be as high as £72m a year. The figure is derived from statements made by Spotify executives.Spotify has been reluctant to reveal how many of its users have upgraded to its premium version. Costing £9.99 a month this allows users to hear music without adverts being played every few songs, and allows them to use other applications such as the Spotify iPhone application.
http://out-law.com/page-10434Spotify’s freemium approach leaves Napster gasping
Only when you put the numbers in perspective does the remarkable nature of Spotify’s offering becomes clear. If you’re a premium user – paying £10 a month – you can store more than 3,000 tracks offline, to listen to as and when you want (and they’re portable if you have an iPhone, iPod Touch or Android phone).
http://www.guardian.co.uk/technology/2009/oct/07/spotify-napster-freemium-online-music

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