This is truly the big problem with Spotify. They're completely at the mercy of the big labels/distributors, who aren't receiving enough money for Spotify to matter to them that much. Whereas Spotify completely cannot afford for labels to pull their music.
The problem is beyond sheer numbers of subscribers as well, Spotify needs people to listen to less, so that the money generated per song play increases and makes them a more attractive distribution medium. Radio stations do this by having DJ's talk lots between songs and varying the popularity of the songs they play, so they don't play too many new and expensive songs. The only tool Spotify has to alter the revenue per song play is changing the subscription price.
Comments
This is truly the big problem with Spotify. They're completely at the mercy of the big labels/distributors, who aren't receiving enough money for Spotify to matter to them that much. Whereas Spotify completely cannot afford for labels to pull their music.
The problem is beyond sheer numbers of subscribers as well, Spotify needs people to listen to less, so that the money generated per song play increases and makes them a more attractive distribution medium. Radio stations do this by having DJ's talk lots between songs and varying the popularity of the songs they play, so they don't play too many new and expensive songs. The only tool Spotify has to alter the revenue per song play is changing the subscription price.