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Alternate1985
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Here's what makes this so complicated to research and understand. Just taking the top 3 talked about in this post, Sweden, Norway, and Finland, we can find a couple of things that completely and totally confuse the situation: First is Sweden, which is the capital of Spotify. With less than 10 million people, surely a company as widely known as Spotify is going to sway the numbers within their own country. Sports teams, companies, local music, and many other things work this way. Pride is a powerful revenue generator. Interestingly enough, Sweden is also the capital of something else. The Pirate Bay. Which was founded there in 2003. To confuse the situation even more, Ek, born in Sweden, was the CEO of uTorrent. Who really knows what drives that country's interests. The second one is Norway. 2 things here. One is the music industry in Norway has been growing steadily since the late 90s. Well before streaming took off. But interestingly enough, right around the time of broadband, which was about 2000. Also, ISP's have no restriction on download amount. Two, Norway's music industry is subsidized by the government to the tune of about 30%. This means grants, education, etc. Which could easily be driving the increased interest in music. The third one on the list is Finland. This one is extremely interesting. Take a look at these 2011 music industry revenue totals http://cl.ly/image/3T0b3U0Q4300. Live music represents half of the revenue and government subsidies represent about a third (just like Norway). And even crazier, royalties generated more revenue that actual sales of recordings. Which basically means no one is buying shit there. I tried looking for Government Subsidies for Sweden, something that I've been trying to find for a while, but it's difficult. The only thing I can find is 2006, which was about 12 Million SEK. Which is basically nothing. I'd love to see the numbers for 2011 and up. If someone can find them, please post. Also something else that's interesting and worth noting, Denmark, which is part of Scandinavia has also seen major digital growth, but overall revenue has steadily been decreasing for a while http://cl.ly/image/2p3j061u0U07. Streaming represents about half (47.4%) of the digital revenue too http://cl.ly/image/2E463J1u0r3m. I definitely think you'll see growth in the Denmark music market in 2015 or possibly 2016, seeing as how digital represents half the revenue and overall losses are flattening. I could go on forever about this stuff. I definitely think you need to consider the piracy and free music culture of that area, before you jump on the bandwagon. But it's definitely fun to research, and obviously either way, their music economy is growing (or one could argue rebounding), so more power to them. All difficult to find backup can be downloaded here http://cl.ly/0B233Q110W09 Finally, nice job by Mark on this one. It definitely got me thinking, researching, and writing. Nick Mango http://twitter.com/alternate1985
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Great question.
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It takes real guts to change your name. I've done it with a small company, and it was scary as hell. So I can understand why they didn't. But I agree with you, it has become a joke. A new name might have made people take notice. This is a good point.
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If Facebook acquires Spotify, what exactly would Facebook tell all the other music services that just got integrated into Facebook? There would be a lot of bad blood. I will admit that Facebook couldn't give a shit less about what anyone thinks. So maybe it could happen. But it doesn't feel right. Remember that whole thing that went down between Parker and Zuckerberg about how they had a "difference in opinion" about being required to sign in with Facebook? Why would that have happened if Facebook was buying Spotify? I think the API theory is good. But they still don't have a digital store in the US. But I guess neither of those could be considered a "big" announcement.
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I think the right question to ask yourself is not "what are we missing," it's what isn't being told to us. And what's not being told to us is what the majors are getting paid to go along with this nonsense, and in turn, influencing the rest of the industry to drink the cool-aid.
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Radio creates the desire to buy. Spotify does not. The term, "Most requested song of the day" exists because you can't choose what you want to hear, you can only beg for it. This is what drives album sales. If you want to hear it again, you can either beg for it, or buy it. With Spotify, you don't have to request anything, you don't have to beg, you just play it. And that's a major problem.
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What is this like the Gong Show of tube sites?
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Pay no attention to the bands behind the curtain. Holy slight of hand press release from Spotify. Don't look at the fractions of a penny we pay to each artist. Look at the total we payout across all entities.
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That quote is just the funniest, most idiotic thing I've read in a while.
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Dom - that section is missing some information. They actually didn't buy 250 labels. Only a small amount. Enough for them to break even. This is why he came up with the 72 number. I agree though, it's confusing. I emailed the band a week or so about that. It all checks out.
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This is extremely interesting. Ian Rogers(CEO) is in Hawaii right now on vacation. When exactly did all this take place?
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Hey everyone, better late than never: My name is Nick Mango and I own a few companies in the music and unique product industry. Limited Pressing - An online store platform for unique fast selling products like Music, Toys, Art, etc. http://limitedpressing.com Solid MFG - Custom vinyl record packaging products, like LP jackets and LP inner sleeves. http://getsolidmfg.com The Old LP - A collectors community where you can trade, barter and manage a list of the items you cherish. Currently we have close to 200,000 items in collections. http://theoldlp.com I also have a personal blog where I talk music and business theory http://nickmango.com
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Chancius, it is rather confusing cause I do a lot of things and Clyde has linked to a lot of them. The blog posts that he's linked to are from my personal blog. I'm a collector of vinyl, and have been involved in vinyl for more than 15 years. I'm not sure exactly what site you're saying is boring and lame, but I assume it's the blog. Yes it is boring hahah, but it's just a blog for me to vent my ideas and thoughts. The question is what do I really do, and that's linked in other places in this post. I own an online store platform (http://LimitedPressing.com) that's popular with small independent labels involved in punk, hardcore, indie and metal. But in general, people who sell unique products like Vinyl, Toys, Art, etc, use it. Hence the name Limited Pressing. I also own a vinyl packaging company called Solid MFG (http://getsolidmfg.com) and a vinyl trading platform called The Old LP (http://theoldlp.com) which currently has over 190,000 items in collections. I don't think you're behind the curve at all, I just think we're a niche industry and this is why you haven't heard of any of my companies. And on a side note, the labels I'm giving advice to are extremely small one person, in the red or break even, hobby operations. Hope that explains it. Thanks! Nick
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Aug 27, 2011