Spot(ify) the Trend

One of the reasons that digital music will be free - whether the recording companies want it or not - is basic economics: the marginal cost is practically zero, which means that the price will tend to that point, too. And now we have this:

Spotify is slashing the cost of its advert-free music streaming in the UK and Europe, in a bid to win more paying customers besides just mobile users. It comes in two new tariffs Spotify’s introducing…

—Spotify Unlimited: £4.99pm/ for no-ads music, but no mobile access, no offline or MP3 play and no higher-bitrate quality.

—Spotify Open: Free, with ads, no invite required, but no mobile, no offline or MP3 play, no higher-quality and limited to 20 hours a month.

What's interesting here is that Spotify has already been accused of not paying artists much for each play: this new pricing scheme is likely to mean their fees won't be going up anytime soon. The sooner artists use free digital music to enable them to make money from analogue scarcity, the better.

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