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STHoldings withdraws more than 200 record labels from Spotify, does so with gusto
STHoldings stormed its way out of Spotify this week, leaving only a trail of choice words in its wake. On Wednesday, the distributor boldly withdrew more than 200 of its record labels from Spotify, Rdio, Simfy and Napster, following the release of a study that cast the music subscription industry in a rather unfavorable light. According to the research, carried out by NPD Group and NARM, cloud-based services like Spotify and Rdio deter consumers from purchasing music via other channels. Amid concerns that these companies may "cannibalise the revenues of more traditional digital services," STHoldings decided to withdraw its catalogue of more than 200 labels. In fact, of the 238 labels consulted on the decision, just four expressed a desire to remain with Spotify, et al. "As a distributor we have to do what is best for our labels," STHoldings explained, in a statement. "The majority of which do not want their music on such services because of the poor revenues and the detrimental affect on sales. Add to that the feeling that their music loses its specialness by its exploitation as a low value/free commodity." The distributor went on to quote one of its labels with a line that rhymes with "duck modify." In comparatively subdued response, Spotify said it respects STHoldings' decision, but still hopes that the labels "will change their minds." The Swedish company also contested STHoldings' study-backed arguments against it, claiming that it has "already convinced millions of consumers to pay for music again," and assuring that artists' revenue streams will "continue to grow." Read more about the study, the stats and the spat at the links below.
Google will not compete with iTunes
For a while now, it's been an unspoken assumption that, with the introduction of a video service (that really hasn't gone anywhere), Google might try to step on Apple's toes and take on the iTMS. However, at the NARM (National Association of Recording Merchandisers) conference this year Chris Sacca, head of Google's business development, confirmed exactly the opposite; that the company is not going to take on the 800 pound gorilla that is the iTMS. Chris then went on to make a call for the existing stores to come together, create a unified format, shake hands and sing kumbaya. A move that other notable folks, such as Cory Doctorow, have been calling for, while others respond with reality-checking prowess. Ultimately, it's probably a good thing Google isn't trying to move in on the digital music turf. It seems that some of their service offerings, such as Google Video, still need a bit of polish if they're really going to make a splash.[via Engadget]
