Spotify CEO and founder Daniel Ek has stated that he thinks the music industry is going to get into “a golden age”.
Ek, whose company has experienced a year of fast growth and now boasts above three million paying customers, has stated that he strongly feels that if their company and other social networks can assist boost the amount of social interaction online users participate in, then they is going to undoubtedly purchase more music.
Spotify can damage traditional music sales by providing fans a low-cost alternative to paying for the full price for an album. “There’s not a destroy of data to point out that,” he told Grammy.com. “Actually, all the information accessible suggests streaming services assisting to drive sales. Album unit sales were up in the U.S. In 2011, the entire year Spotify launched, the very first time since 2004.”
He said that several albums which debuted near the top of the Billboard chart were available on Spotify at launch.
Keen-eyed readers will find the tact of Ek’s choice of words, which only refers to presently available evidence. He doesn’t particularly deny the complaints.
Regarding Spotify’s social integration, Ek information that he discusses sharing as a “really, really vital for our business. We’ve discovered that the more social our users are, the quicker they boost their own music library. And the quicker they grow their music library, the quicker they become paying customers.”
He continued: “In my opinion , I am more favorable on the future of the music industry than in the past, and I believe we’re kind of entering a golden age in music.”
In spite of accusations of poor royalty payouts for artists, and works like Coldplay and Adele refusing to stream their newest albums at release, it is difficult to dispute that Spotify has become a legal haven for music fans. Therefore, it has produced a new income stream for a once harmed industry.
“Spotify customers are helping pay a lot of money-back to the industry,” Ek said. “You’re talking Ten million active customers, 2.5 million subscribers – many of them paying $120 a year, which is double the total amount of your average iTunes consumer.”