Spotify may well be the application that changes the face of music most dramatically since the launch of the iPod in 2001.
The program enables you to listen to songs from a database of millions without spending a penny. There are no issues with download times, the sound quality is good and no laws are being broken. With the launch of Spotify on Android phones and the iPhone it will be mobile as well. Which is all pretty perfect right? Well, maybe not quite perfect.
My worry with Spotify is whether it will have a negative effect on new music, and in particular new music by the smaller independent artists. I also fear that it may be a bad thing for the independent artists trying to make a living from their back catalogue.
Whilst looking into a playlist for our Best of The Year So Far article I was struck by the fact that Spotify didn't have tracks from the most recently released records. Looking at it a bit further I started to see the gaps appearing. Some artists (Hefner was one example) are not featured at all, and others have a very selective presence. In many cases only some songs from an album exist. I can see why an artist might not be there, some, like Pink Floyd, have opted not to be available and others may just not have an agreement in place. But when an artist and a record has been approved for use why would some songs from that record be kept unavailable?
I also wonder how Spotify will generate the money it needs to function and also provide an income to the artists. I don't know anyone who pays the subscription fee to have the service advert free, and listening to the adverts I can't see that stream of income being great, about 50% of them seem to be for Spotify itself. The huge drop in advertising revenue from advertising has made a big impact on television and publishing, so it seems unlikely that in the current climate advertisers will pour money into an untested medium.
I am in a minority as someone who doesn't think that music should be free. I think that is dangerous as it makes it so much harder for young artists to come through. A lot of bands make their income from CDs sold at shows, if we move to an entirely virtual form of music consumption then how do these people make any money? Their slice of the Spotify pie (if they can even get on there) will be pretty small.
A friend of mine was in band that has their one and only single tracks available on Spotify. He wasn't consulted on this, or informed what his royalty for the use of the songs would be. Possibly bands get a PRS royalty in the same way as they would for radio play, but is that fair? The use is very different. If I add a song to a playlist I have the same use of it as if it was on iTunes, much more "ownership" than if it was played on the radio. Once Spotify is common on mobile phones then tracks will be like MP3s in all but the file format. If I want an MP3 I have to pay the 79p (or whatever is being charged) or buy the CD (illegal downloads aside). I'm sure that U2 make sure they get their cut from Spotify, in a way that my friend never could. So this must means that smaller artists will get smaller slices of their smaller pie.
I don't have much interest in the profit levels of the major record labels; they have overcharged the consumer and under rewarded the artists for years and deserve any drop in profits they get. Even now, with the buying of CDs slipping every day, they can't resist the rip-off. I'm very keen to buy the early Beatles albums in the remastered mono format. I've only really ever listened to the albums from Rubber Soul forward and would like to get to know the other albums as they were meant to be listened to. Unfortunately the mono albums are only available in a box-set at a wallet bashing £180. At £11.99 a CD they could have afforded to make both mixes of the albums available. After all, these releases are pure profit. They'll make back any outlay on remastering and marketing on the royalties from the Beatles Rock Band game alone. Making the mono versions exclusive to a box-set is just a way of screwing money from the fans. I'll have no sympathy for the label when the mono versions are being downloaded wholesale for free. The Beatles albums are, of course, unavailable from Spotify.
However, that is a digression from the point here. The key thing is, how will new bands be able to able to make a living in the post-Spotify world? A new model is required. My fear is that if Spotify becomes dominant it will become more and more driven by the needs of the big labels. After all, getting the Pink Floyd or Led Zeppelin albums would be great news for Spotify, so surely the labels can exert influence to get the right deal. A small artist is likely to get a much less flattering deal. And in an age where CDs are becoming obsolete and paying for MP3s becomes a thing of the past, how will they make enough money to continue functioning as a band? The answer is that maybe they can't. And it would be a real shame if the new musical age was as band as the old one for making archive music the main focus.
Spotify is undeniably a great application for all of this. I have discovered and rediscovered a load of music through it in recent months. To focus on the limitations and potential problems is to do it a disservice. So, in celebration of this I have made a playlist of some (mostly) lesser known tracks that I hope you will enjoy, and maybe consider spending some of your money on the bands involved.
By Dorian Rogers