Page 81 - Computer Power User - February 2017

with folks like Tim Westergren [Pandora the “value gap.” There’s a huge explosion clear. Some of it’s up there and it’s getting
founder and CEO], who was a musician. with streaming overall, and a lot of it monetized or someone else is monetizing
Whether that works out for them we’ll is paid subscriptions, which is great it. They’re figuring out various ways to
see, but that’s definitely a motivation from their vantage point, but there’s still improve that, but, again, the end result is
for them. Spotify last year hired Troy quite a lot of it that is YouTube, that is a certain amount of content on YouTube
Carter [as global head of creator services] Spotify’s free tier, that is SoundCloud. is not generating revenue for the artists
and is putting a heightened level of If you’re a consumer, it’s great. You can and songwriters and the labels. There is an
focus on serving artists and the creative find just about everything in the world enormous part of it that is, but even on a
community. And this is a crucial thing between those services. But if you’re the large scale, those ad rates either generated
of course. There are those looming music industry, you’re getting a little bit by YouTube or Spotify’s ad-supported tier
questions about how artists fare in the frustrated with the fact that one just pays just don’t add up to being the same as if
streaming world, and of course, Apple out a lot more than the other. you have someone’s credit card, they’ve
and Tidal are both known for doling out committed to subscribing, they’re going
presumably very large sums of money for : Can you expand on the difference in to renew every month, it’s $10, and you
exclusive deals with artists. With Tidal Q revenue that paid subscription services know it’s just going to be there. So far, the
specifically—even though it’s smaller than generate compared to what is generated ad side hasn’t come close to catching up.
Spotify and Apple—a chief focus of theirs by ad-supported music streaming options
is trying to be more artist-friendly. such as Spotify’s free tier? : Some insiders believe that music
Q downloads may go away in coming
: The terms “music streaming” and : Really, it almost comes down years, essentially because people are
Q “subscription music services” often get JT to simple math. With paid willingly shifting from wanting to own
used interchangeably. Can you touch on subscription services, it’s a much more music to being OK with renting it. Do
the differences that actually exist between clear-cut formula. If you get people to you see such a fate for downloads?
the two and why the music industry is pay—at this point, it’s typically $10 per
particularly excited about the latter? month—for access to music as opposed to : I think people still do want to
bringing in ad revenue from that music— JT own music, but I think digital
: From the consumer standpoint, with rates that are simply lower, those are ownership becomes sort of an odd
JT they might not seem that much per-stream rates—I’m not sure what the concept when you’re almost renting
different, but you’re either paying for latest numbers are, but they just don’t add digital access. What I think you do see
one or not. If I’m a listener and I say, “I up to the same amount. When you get are some upward numbers in the physical
subscribe to Spotify,” I might also jump into stuff like YouTube, I think the labels album market. They’re not enormous,
over to SoundCloud or YouTube for other are especially frustrated because YouTube and I don’t think they’re going to catch
things. From the industry standpoint, is user-generated, unlike Spotify’s free up with streaming, but vinyl tends to
there’s a big difference there, of course. tier, for example. There’s just a lot on have an uptick. Last year, even cassettes
Because getting people to pay $10 a YouTube that either isn’t being monetized had an uptick around the holidays. So I
month for access to music just generates or isn’t being monetized the right way. think people who really love music still
more revenue than advertising-supported YouTube has worked very hard to try have an interest in owning, especially
free streaming of the sort you see with and build tools to help with that. The physical albums. Albums they really love.
YouTube and Spotify. content idea is all about trying to help I do think we are moving to a world
Probably some of the confusion rightsholders monetize or take down or where something like 90% of the music
you see comes from Spotify, which is whatever they want to do with content listening that most people do will be from
a paid service that also has a free [ad- uploaded to YouTube. streaming. You’re going to see fewer and
supported] tier. The industry likes where You almost forget because YouTube fewer downloads.
things are going with the paid version. is primarily a video service, but it’s an It really comes down to Apple.
They’re not so happy about the free tier. enormous source of music, as well. And There’s a rumor it’s going to stop selling
That’s been a big sticking point for a you’ve seen YouTube try and formulize downloads at some point, which it denies.
few years. That’s why folks like Taylor that a bit last year with YouTube Red and But at a certain point, if it’s making a
Swift are critical of Spotify. But from the even its music app, which are promising certain amount of money from Apple
industry standpoint, it’s quite a different steps, but YouTube is still pretty much Music, it might not even make sense to
thing because one generates more money synonymous with free content, and run the iTunes store. Or maybe iTunes
than the other, and I think there’s a a lot of that content is music. And it’s becomes, I don’t know, a place to
growing restlessness on the part of the being supported with ads, but again, the get albums outside of the scope of the
music industry to close what they call ownership of the content is not always streaming library.

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