Saturday, November 22, 2014

Rhapsody CFO: Taylor Swift Is Right — Free Streaming Is Bad For Music



Free streaming services send the wrong message to consumers. If you continually offer somebody the perpetually free model, they’re always going to opt not to pay for it. Streaming services like Spotify offset the cost of their free tier with ads, so at the end of the day, someone is paying for that content. But there are two things we think are wrong with this model: 1) We feel that music is not something that should be interrupted. It creates a mood, and an emotion, and a setting — it’s not an advertising opportunity unless you’re looking to cheapen the experience. Rhapsody has always been an ad-free service and it’s something that we’re proud we’ve been able to maintain. 2) There’s the matter of what you’re training consumers to be doing. Are we teaching future generations that albums are not important? Are we teaching young people to think that music is perpetually free? - CFO Ethan Rudin,Rhapsody via Reggie Ugwu,BuzzFeed News [via/web:http://streaming-tv.us]

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