Spotify refuses split streaming model for Adele

Swedish DRM-based music streaming provider Spotify has turned down the opportunity to share Adele’s award winning music to the whole world as the diva only wanted to stream the music to those who pay for premium services.

According to Fast Company who sites ‘multiple sources’ as their informants said that it has been confirmed that Adele was only willing to do business with Spotify if they can block her music to freeloaders.

Spotify however didn’t want to give in to the singer’s demands as this are not willing to changing their business model to suit her.

The music streaming site remains steadfast with their conviction to give their freemium member equal access to their music library as those who pay for their premium services. The difference with the two is that freemium members have ads.

According to The Fast Company, “Ultimately, Spotify decided it did not want to split up its content catalogue, so as to create separate music libraries for paying subscribers and freemium users. Thus, it was essentially Spotify that decided against providing streaming access to Adele’s content for paying subscribers – not the other way around.”

Adele is not the first artists to not give rights to Spotify to stream their music. Coldplay, The Beattles, Metallica and other big names have not given Spotify the permission to stream their songs.

Artists choose NOT to have music in Spotify

Popular artists are opting not to make their song and albums available on streaming music sites such as Spotify, Mog and Rdio to increase their sales and revenue.

The list include Coldplay, Tom Wait and British singing sensation Adele. The latter’s album 21 was the biggest album last year. Her songs like Someone Like you and Rolling in the Deep have etched their marks to the hearts and minds of her followers.

This comes as a huge blow for the streaming sites that charge their subscriber $5 to $10 a month to listen to music as much as they want. The sites pay the artists a royalty premium every time their song is being listened to online. But some artists don’t think that they are being paid dutifully.

According to Coldplay’s manager Dave Holmes, “I am very concerned. Spotify competes with download stores.” Mylo Xyloto, the band’s next album is due for release this coming October. But the manager also noted that, “like all of Coldplay’s other titles, the new album will be on Spotify eventually.”

This strategy is similar to movie studio strategies. In that, they first release the films to theaters, then DVD’s and later on cable channels and streaming sites. This strategy will maximize the revenue for both the movie and TV producers. According to Needham analyst Laura Martin, “It certainly hurts Spotify’s perceived value in the consumer frequently searches for songs that aren’t there, even if that represents a small fraction of titles.”

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