Music industry giant Warner Music will no longer be licensing songs to free music streaming sites, bigwig Edgar Bronfman announced today.
Hugely popular streaming networks such as Spotify in the UK and Europe will no longer get a ticket to licensing from Warner music. It’s not yet known whether Warner plans to strip all of its music from existing streaming services or if it plans to put a stop to deals with new releases or outlets.
Edgar Bronfman reckons that streaming services are “clearly not net positive for the industry and as far as Warner Music is concerned will not be licensed.”
Record companies throwing toys out of the pram when it comes to online music is obviously no new thing. The Eye reckons that instead of shunning the idea of free streaming, full stop, it needs to come up with a new approach that will keep the consumer happy while still lining the pockets of obscenely wealthy execs.
At the moment Warner makes peanuts from Spotify, and as is usually the case, the artists even less. The main problem, thinks Bronfman, is that about 95% of Spotify users aren’t subscribing to the tenner-a-month premium service, so profits are few and far between.