Everyody Wants It, But Nobody Wants to Pay?

Maybe that’s because the users know it’s the corporate monoliths that have breathed life into this beast?

Spotify Despite the buzz around Spotify, most users forage on the free content and are loathe to pay for extras. By most estimates, almost all Spotify listeners stick with the company’s free service, and don’t pay for the premium offerings.

Mark McCormick, 25, a graphic designer from Newcastle, signed up for Spotify’s free service about three months ago and now listens about five hours a day at work and at home.

“About three minutes after signing up, you are listening to almost anything you want,” he said. Though he isn’t keen on the advertising, he doesn’t want to sign up for the premium service, because he says £120 ($199) per year is a steep price.

Mr. Ek hopes that mobility will be the tool that changes users’ minds. Last month, Apple approved Spotify’s iPhone application — but only people who sign up for the premium service can use it.

via online.wsj.com

The Wall Street Journal weighs in on the big PR machine in Europe. Seems people like it, but they don’t want to pay for it. That could be a problem.

And, as this article points out, Spotify is owned in part by the big label media companies, which might explain why Spotify is getting off the ground at all — it’s a proving ground for the labels.

Still, if anybody does pay for it… where does the money go?

Whether streamed or downloaded, people will pay for their content if they know the revenue is going to the actual content creators.  But if they think it’s just going to the big media conglomerates, they probably care a lot less about paying for it.



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Paul S