In an interview with Billboard Magazine, Daniel Ek, the CEO of the music streaming service Spotify has said that he wants more artists to understand the value of the website and how it can help their sales.
During the interview, Ek was asked about Taylor’s Swift decision to withdraw her music from Spotify and what it had learned from the experience. Ek replied:
“…what it has highlighted for us is we need to do a better job explaining to artists how streaming benefits them. The point that’s been lost is that Spotify’s the fastest-
growing revenue source the industry has. There are many artists to whom, through the labels, we’re paying out millions a year already…”
Swift decided to remove her music from the site as it would only be accessible to paid users of Spotify, and not its free members. However, Ek made it clear in his Billboard Magazine interview that the music streaming site would not be changing its stance anytime soon. He said
“…there’s a lot of other places where you can access that music for free, so our view is the only thing that happens by not being in the free service is that the consumer then has to go to another service to get the song, and they will. If they stay on the [Spotify] free service there’s a lot more likelihood that the consumer ends up becoming a paying subscriber, thereby generating more revenue. And then on top of that we’re paying a considerable amount every single time someone does play a song, whether it’s on the free tier or the paid tier…”
Nevertheless, during the Billboard magazine interview Ek did indicate that Spotify would be taking measures to ensure that its subscription services are more attractive so that non-
“…just like we’ve had deluxe edition of albums, everyone is thinking about how does that look like in a future world? Lossless music –
– is that a higher priced tier? Is that something that comes with deluxe editions? How should we package subscriptions to consumers? That’s a very big topic right now on the label side…”
Ek also discussed the rumours of an IPO. He told Billboard Magazine that Spotify hadn’t made any decisions and it wasn’t something they were giving a lot of thought to.