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Spotify, the on-demand streaming music service previously available in the UK on an invite-only basis, opened up to all UK internet users on 10 February 2009 to much media fanfare. The service, which has struck licensing deals with all four majors and a raft of independent labels, offers a free streaming music service and includes such innovative features as collaborative playlisting and “scrobbling” to other existing digital offerings. Spotify is funded by intermittent advertising in the free service and subscription payments for the ad-free service. It enters a now crowded online marketplace of similar services including Last FM, Jango, Deezer, Muzu, We7 and, of course, YouTube all of which aim to monetise streaming music and music videos.
Spotify is launched at a time when the music industry’s “stick” approach to illegal file-sharing hangs in the balance. The ongoing Pirate Bay case demonstrates the difficulties rights owners face in pursuing infringers through the courts, and the recent interim “Digital Britain” report highlights the government’s luke-warm response to the idea of disconnecting serial file-sharers from the internet. Services like Spotify suggest there is some potential to displace illegal file-sharing activity by offering the “carrot” of a compelling, simple and legal alternative to p2p and torrents. Whether this alone is enough to bring about a behavioural shift in consumers of digital music remains to be seen.
Jon Baker
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Simkins' early warning bulletins are for general guidance only. Legal advice should be sought before taking action in relation to specific matters. Where reference is made to Court decisions facts referred to are those reported as found by the Court. Please note that past bulletins included in the Archive have not been updated by any subsequent changes in statute or case law.
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