Wednesday, February 10, 2010
Warner retreats from free music streaming
Companies like Spotify, We7 and Last.fm give free, legal and instant access to millions of songs, funded by adverts.
Warner, one of the four major labels, whose artists include REM and Michael Buble, said such services were "clearly not positive for the industry".
That raises questions over the future of free streaming, which is popular with fans but not lucrative for labels.
Spotify has seven million users in six European countries and is in negotiations to launch in the US.
Ninety-five per cent of those fans use its free service, hearing adverts between songs, while 250,000 pay a monthly fee to get it on a mobile and with no ads.
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