Spotify relies on the big labels for most of its music. It thinks that will change.

Speaking of not being able to piss off the past, here's Peter Kafka on Spotify's current strategic thinking:

The idea, according to people familiar with the company’s plans, isn’t to cut out the big music labels or compete directly with them by signing acts to recording deals.
Spotify does imagine, however, that over time, a growing tier of music acts, or small independent labels, won’t use the big labels for distribution. Instead they’ll work directly with the streaming service.
If that happens, the thinking goes, Spotify will be able to command better terms from the small acts and labels than it gets from Universal Music and the other giant labels. But the small acts and labels will end up keeping more money than they would have in the earlier arrangements because they won’t have to pay the big guys to bring their stuff to Spotify and other outlets.

This makes sense, as with above, it's just a matter of timing...


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