Warner Music has warned that is will stop licensing its songs to free streaming services like Spotify and Last.fm.
Warner - one of the four main record labels, has suggested that the ad-funded model is "not positive for the industry".
Spotify has been a massive hit in the UK and Europe, but if major labels start pulling their support then it and other free services may well no longer sustain their popularity.
Not be licensed
Warner chief executive Edgar Bronfman Jr told the BBC: "Free streaming services are clearly not net positive for the industry and as far as Warner Music is concerned will not be licensed.
"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."
Warner has not stated if it will remove existing music from the services or decline to do deals with new outlets, but Bronfman indicated that paid-for streaming services did have the support of the label.
"The number of potential subscribers dwarfs the number of people who are actually purchasing music on iTunes," he added.
Via BBC
Your comments (1) Click to add a new comment
tech89
February 10th 2010
1. Someone was going to question the ad funded model sooner or later. It would be a problem if Warner did pull its catalogue, chain reaction might occur, one music biz loses faith and another might too and so on.
I like the ease of buying songs, I only have one complaint, I have stopped using my Visa card (cash depleted) and using my Maestro account (cash plentiful), and I cannot see an option for Maestro on spotify payment system. I instead now buy direct from 7digital.
Spotify is a great music service still. I discover new music I never knew of through using spotify.
Alert a moderator
Tell us what you think
You need to Log in or register to post comments