October 9, 2009 at 4:24 AM (PT)
BRITAIN’s #1 music-streaming service could be out of business within a year, reports THE NEW YORK TIMES -- unless more of of the people using the free service start paying for music. Industry sources told THE TIMES the service "could soon be dead."
SPOTIFY founder DANIEL EK, wrote a letter to THE TIMES, and said that "the industry had to fundamentally to change the way firms charged for songs." The service allows users free access to music -- if they are put up with regular ads. Premium subscribers get an ad-free experience, but fewer than 10% of the service’s users are believed to have chosen the subscription option.
"SPOTIFY will be dead within a year if it carries on like this," said a senior executive at one of the big four music groups, who THE TIMES did not name.