The consumer trend of streaming is growing, as well as the consumer outlet. Nowadays consumers are streaming unlimited amounts of music. It is no wonder why the digital download is suffering. Streaming was to be the new revenue of the music industry. However, streaming has proved to bring in low profits and low returns. Spotify has tried for years to convert free subscription subscribers to paying subscribers. The transformation seems impossible with competitors Deezer and Daisy entering the market place this year.
Yesterday Spotify has removed all time limitations on free accounts, leaving consumers minds with even more opportunities not to pay for the subscription model. Spotify made the changes to compete with Daisy, who will enter the market place January 21, 2014. Daisy will limit free subscriptions to a seven-day trail period.
In 2014 subscription services will be more competitive then ever, with a market that already sees low profits. These services will be focused to cut profits even more to compete with competitors. It seems we have entered the era of the “ Streaming Battles” the weak will fall and the strong will survive.