The first nail in the coffin of free streaming services has been hammered as Warner Bros has stated that it has lost faith in the format and intends to withdraw its catalogue.
Online portals such as WE7.com and Spotify are services that use the ad based format of streaming music for free and have built up large memberships, but this development will surely create an atmosphere of anxiety as one of the world’s biggest music companies has officially announced it will no longer be allowing it’s artists music to be enjoyed by the membership of these type of sites in the future.
Warner chief executive Edgar Bronfman Jr explained: “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.”
With Spotify currently enjoying a membership of 7 million and in negotiations to launch in the USA, this could cripple their plans if Warner’s move is mirrored by the other major labels.
This move by Warner’s would mean artists such as Madonna, Red Hot Chilli Peppers and a whole host of artists will no longer be available. We wait with baited breath for more developments
