After receiving some bad press in recent days, Spotify thought it might be a good idea to shift the conversation around digital sales and music streaming. With that, they did a bit of research on how holding out releases from streaming services affect digital sales and piracy. Titled Adventures In The Netherlands, the report examines the Netherlands and its recent success with halting piracy.
From the report, Spotify concluded that, “Artists who delayed their release on Spotify suffered higher levels of piracy than those who did not.” They also went on to touch on the impact that festival appearances make on a band’s sales. “What is surprising is that our analysis uncovered some examples of torrents spiking immediately after festival performances. Explanations for these spikes merits further study, but one intuitive driver is instant gratification. Academics and policy makers who are researching this topic may want to consider other events such as awards and talent shows to see if similar spikes occur.”
Along with a spike from festivals, Spotify also concludes that holdout strategies lead to an increase in piracy. In other words, if your music isn’t readily streamable online, chances are consumers would rather illegally download it than have to purchase it digitally. Which seems to be something that we already knew in 2013. With that, though, Spotify continues to make an effort to take down any negative commentary surrounding its service and its lack of an ability to properly pay its artists for their streaming content.
Let us know what you think about the controversy surrounding Spotify and music streaming in the comments section below.
you never beat innovation by boycotting it…you have to out innovate..