In 2015 Daniel Ek, the CEO and founder of Spotify, states that their main objective is to get artists and musicians to buy into the idea of Spotify and see the true potential. However, Spotify has yet to convince consumers to buy into the idea, leaving most memberships at the freemium level with no intentions to graduate to the premium service. Ek said that artists and musicians are not informed on Spotify’s service. However, everybody with and around the music industry is well aware of the dollar to the penny pay out.
Ek is a contributing factor to piracy. He was the CEO of uTorrent, one of the largest companies responsible for pirated music file sharing. Yet in the past, Ek has made statements toward the legal practices and legitimacy of Grooveshark’s and Pandora’s services. Grooveshark’s VP of Corporate Communication, James A. Pearson stated, “ But as Spotify’s CEO – who it’s worth mentioning is the recent CEO of uTorrent, an app used by over one hundred million people, which had similar perception issues – called Grooveshark ‘a pirate service’ in his blog response to Taylor Swift, we had to comment on that element.”
In the situation with Taylor Swift, Ek said you cannot limit your music on Spotify, because consumers will go somewhere else to find it. That seems like the opposite, if you can get it for free, why would you pay for it? Which would seem like a contributing factor to lower download sales and physical sales. Nothing can compete with free, no matter how well you market, sell, or promote music.
I feel that in 2015 Spotify will face many artists and groups in protest of their services. Artists and musicians will continue to ban and pull their music from the site. To be a success, Spotify must change their business model, limit the consumption of music that consumers have access to, and limit the consumption of their music to make fair ground for other distribution patterns.