Spotify is in the news again, this time they have published a new study investigating patterns of piracy. The new study reveals quite a bit about piracy, specifically in relation to why people pirate. The most interesting bit of information that the study reveals is the relationship between streaming and piracy. The study revealed that when songs are available to stream the same day they are available for purchase, the ratio of the amount of pirated copies per song legally downloaded is significantly less. Clearly this makes a lot of sense: why would people pirate if a free legal alternative is available?
What I’m really interested in however, is the relationship between music streaming and the purchasing of music. There is probably a fear in the music industry that streaming services will significantly reduce the amount of downloads a song will receive. This may significantly eat into their bottom line, assuming that the margins are significantly higher for a digital purchase of a song than a dozen streams. I actually think that in the long term it may have the opposite affect.
Streaming services will not replace music purchasing, but complement it. This is because streaming services are more of a place to explore and discover music, as opposed to an online store where the consumer is simply there to buy the music. After exploring/discovering songs people will still want to make a purchase because a purchase will (and should) give them various advantages, such as listening at a higher quality or without the need of an internet connection.
Source:
http://consequenceofsound.net/2013/07/music-festivals-increase-piracy-according-to-spotify/
