Illegal Downloading Platforms : The Recording Industry

1624 Words Nov 6th, 2015 7 Pages
• Illegal downloading platforms

The recording industry estimates that it loses more than $4.6 billion every year to physical piracy (Lessig, 2004). The chart below shows that Spotify is helping to shift consumers away from piracy and towards their free, legal alternative.

Due to the history of illegal music downloading in the digital age, consumer’s willingness to pay for the services provided by Spotify remains very low.

• Free Versus Subscription Services

Artists and record labels are still debating whether or not interactive advertising revenue services such as Spotify will shift the culture of the music industry consumers by discouraging music piracy (Seabrook, 2014) or further damage the industry by reducing paid downloads of songs and albums (Garraham, 2015). Spotify claims that users of its free service eventually change into becoming paying subscribers, therefore doubling the amount they pay for music from about $5 per month $9.99 per month (Spotify, 2015). Reports claim that record labels are placing increasing pressure on Spotify, constantly stressing the need to reduce their offerings on its free service and therefore more accurately reflect the work of artists (Ingham, 2015).
Apple Music is one of Spotifys newest and most threatening competitors. Apple Music offers every prospective subscriber the first three months of Apple Music at not cost. This competitive offering may decrease a number of Spotify subscribers. However, Apple Music does not…
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