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The other week, Spotify added a few limits to their free service, and boy-oh-boy did the internet get uppity. DiS has discovered some new research that offers some clues as to why there was a cacophony of "naaah mate, Imma gonna go back to pee-to-pee and mediafire and propah free shi', innit!"
Flicking through the magazines in the newsagent yesterday, as you do, I spotted the latest issue of New Media Age and their cover story revealing findings of a survey of 1,000 music fans. In essence, Lightning Research discovered that "only 6% of respondents said they would pay above £8 for a subscription, despite the majority of online subscriptions costing around £10." Which seems a bit barmy, especially when you consider it wasn't that long ago that a CD cost £15 and you wouldn't blink if a round of drinks came to eight quid, and because music is, like, priceless, isn't it? I digress...
Here are some graphs:


Here's a quote from New Media Age's Charlotte McEleny:
There does seem to be a point at which people are uncomfortable paying for music online, whether streaming or downloading. While most streaming services cost around £10, above the amount most people are willing to pay, they do have lower price points too. The issue is whether people are aware of this, which I doubt, so the digital music industry has a serious education job to do if it wants behaviours to shift further away from illegal downloading.
Here's something else interesting that they found:
In an average week, 30% of people’s music listening time is taken up by radio, broadcast or streamed, 14% by an MP3 player, 31% listening to MP3s on their PC, 11% via streaming services and 10% each on music TV channels and via mobile.
...and HERE LIES A LINK TO THE FULL FEATURE.
...and here are some Spotify playlists by DiS.
Update: Judging by the reactions on Twitter and our Facebook, 100% of DiS readers disagree with the findings of this survey and the attitudes of humankind toward paying for stuff.
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fuck man. 57% of people want unlimited monthly music streaming for £4 or less? that's sad.
£10 a month for Spotify is an absolute bargain
Remember, in the 90s we were all saving up to by £14 CDs. People need to FUCKING REMEMBER THAT SHIT.
Spotify Prem FTW
indeed
and as folks have pointed out on Twitter and Facebook, it's only £4.99 to get Spotify Unlimited on your computer - hardly a rip-off for access to more music than you will ever have time to listen to, is it?
Even £5 for spotify as an unlimited try-before-you-buy isn't bad.
I still like to actually have the music (on cd or whatever) if I cancel my subscription though.
The problem I have with streaming services is that they require a data connection- fine if you're at a computer, but less so if you're in the car.
you don't need data connection for the premium service, you save stuff to listen to offline (and it's in higher quality than the free version) and you can listen to playlists and albums and stuff. I guess the fact people haven't grasped this is partly why radio remains so big.
i don't really think subscription is going to replace people buying physical stuff, in fact, i'm surprised you can't click to buy deluxe editions via Spotify but wouldn't be shocked if the US launch includes stuff like that and merch and myspace-ish widgets for downloads and tour dates and stuff...
Seems fairly self-evident to me, don't understand the comment that `100% of DiS readers disagree`
I mean, look at the proportion who source music from radio - I can't remember the last time I really listened to music on the radio (by choice). I'm thinking close to a decade. Given that such a large proportion of people are happy with radio supported by advertisements as their primary music listening mechanism, is it that surprising that people aren't prepared to pay a huge amount to listen to a glorified radio each month?
I know, I know, $4.99 a month is a good deal on paper. But there are at least two major flaws with that. Streaming access is distinctly less appealing *to pay for* than ownership - I don't mind not owning music in a lot of cases where I can stream it, but paying for temporary access is a different prospect. Secondly, it isn't close to as stable a catalogue as it ought to be - so many albums disappear at whim for no apparent reason, and the fact that certain tracks are unavailable on otherwise available albums *even* for full premium subscribers is pretty unforgiveable. Not to mention the many things that are never on there to begin with.
Re: Moker's comment about people needing to remember when CDs were £14 (and presumably feel grateful that it isn't that bad now) - that was simply a terribly exploitative situation for consumers and isn't a reliable base from which to measure current activity. Pricing is moving much more closely to realistic measures of value in 2011 than it ever was before.
spotify should be the way to "discover" new artists, i still like to buy CDs and go to gigs, i agreed with advertising in the middle of the albums, i won't pay 10 £ per month for spotify.
I suspect that
whether Spotify is a good deal for you or not depends on how much music you listen to and how much money you spend on music. I'm currently considering getting a Spotify premium account on the basis that on checking how much I've spent on iTune since last summer I discovered that I'd downloaded on my phone alone 195 tracks which amounts to more than the cost of a monthly subscription over a 12 month period. Also I'm self-employed now related to music so I reckon I can maybe put that through as a cost... research and development...
Separately, the first "source music" graph is misleading to me - I listen to the radio to discover stuff sometimes (along with reading sites like this and word of mouth etc) but I don't "source" my music from the radio - I source it from a shop or the internet (or a subscription service). This graph leads me to believe that people don't buy music they just listen to the radio. The more appropriate question is surely how to people discover new music and then how do people source that new music once discovered?
The only issue I have with Spotify is that it's like renting your house - at the end of a lifetime of renting you're left with nothing of tangible worth. If for the next 5 years I rent my music and then stop, I won't have my physical record collection to listen to which bothers me a little. I'll have spent a lot of money but won't have anything to show for it.
Who are these people who think £5 a month for unlimited music is overpriced?
The same people who pay eight times that for the ability to shoot angst-ridden birds out of a cannon, no doubt.
``Streaming access is distinctly less appealing *to pay for* than ownership``
Exactly ^this.
I don't rent music. I collect it. I buy it. And nowadays CDs are priced such that buying mp3 downloads is a pretty pointless exercise, in financial terms. Besides, you can't collect mp3s. You can acquire and store 'em, but you can't collect 'em.
It might be an increasingly old fashioned attitude, but at least it's a sustainable one.
Spotify is really great as an on-demand try-before-you-buy sservice. And it's a decent enough playlist sharing system, too, I suppose.
The paid-for bells and whistles versions of Spotify are effectively a rental system. If you're happy to rent music, then fair enough.
But don't kid yourself that you're some sort of noble creature if you pay for Spotify.
Five or ten quid per month for all-you-can-eat access to a massively extensive back catalogue of music? Once you've taken out the chunk for running costs etc, you're left with very little.
So despite what many would have you believe. Spotify subscribers aren't really paying for music. They're paying for a slick delivery method.

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