Separate sources from major music content groups are reporting that the “free streaming” available on Spotify and YouTube may come to an end one day in the future. The sources say the big three major labels may make moves to kill free music streaming if a pre-determined paid streaming threshold is reached. That level of paid accounts may be achieved in 2-3 years, source say.
The idea of terminating free streaming has likely been “on the table” for a couple of years. Free streaming brings in a relatively minor amount of revenue into the industry compared to paid accounts. But there are those that think that free streaming is what leads to paid subscriptions and is behind the recent decline in online piracy.
What’s been dubbed as “Streaming: Stage Two” is a hard move away from free accounts and making everyone pay once existing paid accounts bring in enough revenue overall. The idea of killing free accounts has been around since Spotify had 25 Million paid users. Now that the number has more than doubled, the move could come sooner than later.
According to Digital Music News:
All of which is shifting the momentum towards streaming stage two, which involves a ‘hard transition’ away from free tiers. And the logic behind the move is this: more and more people are paying for premium streaming accounts. At a certain point, those subscribers will be contributing enough money to keep the industry healthy. Read More