Of course, the music industry has a long tradition of separating a song’s profit from its creators. Still, wrote Krukowski, “the ways in which musicians are screwed have changed qualitatively, from individualized swindles to systemic ones.”
He believes that the future of the music industry is bright, but only once the labels get over their obsession with selling “bits of plastic” for £10 or more.
Gerd adds: I think it’s beyond repair , frankly ;)
Music is a much smaller and less significant part of many people’s lives than 10-20 years ago. There is more competition for our attention and the value of music has declined precipitously. This graphic shows the rise of digital against physical music, and the overall impact of piracy, widespread distribution and digital media on the music industry. The sad story is that overall the music business is shrinking. That is a fact that we all have to face. The silver lining in all of this may be on the horizon, but it cannot come soon enough for me. We have to do something to reverse the trend.
according to internal Spotify data, after an initial burst of interest that resembles the pattern for sales of music, a funny thing happens. Songs in the company’s catalog are played again and again, with no diminution in popularity. The reason is simple: people are building playlists. It’s as if an artist were paid every time one of their fans dropped a needle on their record…”
Gerd comments: I love Spotify and certainly hope they can indeed change the way the music industry work - all it will take is approximately $3 billion in VC money ;)
Among the bigger-name streaming services are Spotify, which uses a freemium ad-supported, desktop app-based model; Rdio, which takes a tiered, cloud-based approach; and Pandora, whose personalised streaming radio is also available on a freemium ad-supported model. There’s also Wimp, Rara, Napster, We7, Pure, Last.fm, Senzari, Grooveshark, Sony Music Unlimited, Songza, Mog, Samsung Music Hub, and Microsoft’s Xbox Music, to name a few. In total, more than 500 legal music services are operating across the world, together having registered over 13 million paying subscribers - a figure that jumped more than 65 per cent last year, according to the International Federation of the Phonographic Industry’s (IFPI) Digital Music Report 2012 ….
Too big to succeed: Is the music streaming market doomed to failure? | ITProPortal.com
It’s all about access, not ownership. And Freemium. The music business needs to get this, or fold.

In a new report , Informa Telecoms & Media analyst Giles Cottle posits that Spotify has been more instrumental in helping Telia upsell smartphones and data plans to existing customers than in helping it poach customers from rival carriers.
Spotify gets a leg-up in Germany from Deutsche Telekom bundling — paidContent
They should make a basic version available for FREE, and upsell from there. IMHO.

Check out this quite entertaining new video of a web-conference with Andrea from Digital Music Trends, on the topic of Internet Radio Acts, Pandora, Google’s Free matching & more (by Andrea Leonelli).
Sirius, for example, pays 8 percent of its revenue to record companies and artists. Pandora pays a fraction of a cent each time a song is streamed, which last year amounted to about 54 percent of its revenue, or $149 million.
“The rate being too high dramatically depresses how much music gets played,” Mr. Westergren said in a recent interview. “It has really suffocated the industry.”
Gerd adds: the music industry loves to choke their golden geese. Pandora should pay a percentage of revenues just like any other radio service, IMHO.
Future of Online Music, a set on Flickr.
A quick update on the future of digital music and the need for a new digital music license. Be sure to download (and read:) my Music 2.0 book, it’s free via http://www.mediafuturist.com/2011/01/freebooks.html

The music industry insists on being paid. But by doing so in such clumsy and badly implemented ways, they have destroyed any pleasure from listening to music and alienated countless customers. I tried to buy CDs, but Apple can’t copy them properly onto my PC. My PC can’t stream them reliably through my Squeezebox because of Microsoft and Logitech. No music subscription service I can access on the Squeezebox is any good at all.
Spotify definitely isn’t the future for music. So what is? | The more accurate guide to the future
Good piece - I do love Spotify, tho:))
Crosby, Stills and Nash have released an iPad app developed by Contendis that allows fans to subscribe to exclusive content, updates and premium fan features. Think online fan club without access to concert tickets. The band is calling it the first subscription-based iPad app for a recording artist to be approved for sale in the Apple App Store. The app is free to download. A subscription costs $3.99 per month or $39.99 per year and can be purchased within the app.
For some, maybe, Apps are the next CDs…?
I groove with computer music…
Apple’s clout in music, which began building when the company introduced the iPod in 2001, could face threats as more consumers choose to stream music over the Internet, rather than purchasing it.
Told you so:)). Long time ago, here. And again, yesterday. The music business ecosystem is utterly dysfunctional - thanks to the IPFI, RIAA, most of the rights societies and widespread arrogance and egocentric obsession with control. Bummer, really. (Thanks to Fran van Horn for the Hypebot link btw).
(via The future of the music business: creating a new ecosystem (Futuris…)
Futurist, Author and Keynote Speaker Gerd Leonhard summarizes the key trends for the future of the music industry - 15 years of presentations on this topic all-in-one :) See all of Gerd’s stuff on this topic, and his free books, here: http://gerd.fm/futuremusic
Vint Cerf discusses an interplanetary internet.
Father of the internet, Vint Cerf, on creating the interplanetary internet
An animated infographic series called “Smart Community” by Toshiba shows facts about countries in relation to the rest of the world.
How Google Glass Works
By Martin Missfeldt.