Perdita
11-02-2010, 07:12
Warner Music has declared plans to stop licensing its artists' music to free streaming sites.
The label, which includes acts such as Muse, REM and Red Hot Chili Peppers, wants to keep its new releases from featuring on sites like Spotify, We7 and Last.FM.
Warner's chief executive Edgar Bronfman Jr announced that the decision is a move against services the company believe are endangering the future of the music business, reports The Guardian.
"Free streaming services are clearly not net positive for the industry and as far as Warner Music is concerned will not be licensed," Bronfman said. "The 'get all your music you want for free, and then maybe with a few bells and whistles we can move you to a premium price strategy', is not the kind of approach to business that we will be supporting in the future."
However, a spokesperson for Warner confirmed that the decision is likely to only affect future deals and that the sites will be allowed to continue hosting music by Warner acts for the time being.
Bronfman went on to say that he wants the firm to instead set up a dedicated subscription model, with music fans paying a regular fee in turn for a steady stream of the label's music. He added that the number of potential subscribers could "dwarf" the number of people who currently purchase their music through sites like iTunes.
Last month, Universal had La Roux's debut album taken down from free streaming services including Spotify and We7.
The label, which includes acts such as Muse, REM and Red Hot Chili Peppers, wants to keep its new releases from featuring on sites like Spotify, We7 and Last.FM.
Warner's chief executive Edgar Bronfman Jr announced that the decision is a move against services the company believe are endangering the future of the music business, reports The Guardian.
"Free streaming services are clearly not net positive for the industry and as far as Warner Music is concerned will not be licensed," Bronfman said. "The 'get all your music you want for free, and then maybe with a few bells and whistles we can move you to a premium price strategy', is not the kind of approach to business that we will be supporting in the future."
However, a spokesperson for Warner confirmed that the decision is likely to only affect future deals and that the sites will be allowed to continue hosting music by Warner acts for the time being.
Bronfman went on to say that he wants the firm to instead set up a dedicated subscription model, with music fans paying a regular fee in turn for a steady stream of the label's music. He added that the number of potential subscribers could "dwarf" the number of people who currently purchase their music through sites like iTunes.
Last month, Universal had La Roux's debut album taken down from free streaming services including Spotify and We7.