Report: Labels See Profits Streaming To The Future
August 30, 2013 at 3:53 PM (PT)
It's just not APPLE consumers who are eagerly awaiting the launch of iTUNES RADIO. In a new ROLLING STONE article, many in the music industry have come to the conclusion that music streaming services could become the main revenue generator for the industry's survival and prosperity.
On top of iTUNES RADIO, GOOGLE PLAY, PANDORA, SPOTIFY and BEATS BY DRE'S DAISY service are just some of the growing number of streaming services. "An arms race is afoot," RCA RECORDS Pres./COO TOM CORSON said. "APPLE had a very nice business selling things, and it worked great for us, and it was growing and growing. [APPLE] was waiting for a disruption to come into the market, and now they're prepared and ready to pounce."
One thing that excites the labels is the likelihood that APPLE "will not just expose users to ads but steer them to iTUNES 'buy' buttons."
"The 'Buy' button on APPLE RADIO is very prominent, so when you hear something and you like it, boom, you press the button," UMG Pres./Distribution JIM URIE said. "I think it's actually going to be a bright red button! Everybody agrees it's going to be good for the business."
The lingering question seems to be whether the revenue generated from streaming will be enough to make both the labels, its artists and the streaming services happy."The move towards [free] access to music is so simple and ubiquitous that it's having a major impact on piracy," LINCHPIN DIGITAL consultant SYD SCHWARTZ said. "But I don't know that I'd be whistling 'Happy Days Are Here Again' for the major [labels] anytime soon."