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Spotify Launches in Australia – What Now for Music?

The long anticipated wait for Spotify finally arrived yesterday, with the popular music platform now available to Australian users.

FRANk Media - Spotify launches in Australia iPadThe record label’s answer to music piracy, Spotify houses over 16 Million songs available for users.  The account is a “freemium” model, which gives subscribers the choice of listening for free with advertisements or paying to upgrade to ad-free services.  The Commonwealth Bank, McDonald’s, Virgin Mobile and Carlton United Breweries have already signed on as sponsors. The arrival of this major international player will surely shake up the market with JB Hi Fi’s  “Now” already operating on mobile streaming model.

Songs are played through the online platform, but also available for paid download.  It is inherently social as users are encouraged to sign in via Facebook and have access to friends playlists & recommendations.  Independent musicians can distribute their music to Spotify; paid through downloads @ $.70 USD while artist payment for streamed songs is on a scale determined by the total number of monthly plays an artist receives.

Since the launch of Napster in 2001, the music industry was rocked by the common-use free file sharing that ultimately changed the world of music.

Online file sharing and accessibility has most certainly drained the pockets of record execs down to the artist themselves…but it has also given the ultimate opportunity for any artist to showcase music to the world.

People will always continue to make and listen to music – whether it is a sustainable living is the ever-changing question.

What are your thoughts on Spotify & the future of the music industry?

  1. May 23, 2012

    I am so excited that Spotify is FINALLY here after listening to friends in the States talking about it for months. The model is pretty savvy – I expect that far more people will ‘try’ various types of music and buy the ones they like, rather than simply ‘stealing’ from illegal download sites because of the ability to share and learn from other users about music they might enjoy.

    It reminds me of the MagNation magazine stores (http://www.magnation.com/) where you are able to browse hundreds of magazines in the shop to see whether or not you like the publication. While you might read the whole magazine in the store, the owners found that far more people proceeded to purchase the magazine after browsing extensively, rather than having a ‘quick flick’ and putting it back (much like the 30 sec snippet you get to try on iTunes, although I hear they have increased this to 1.30mins…)

    I look forward to continuing my musical education on Spotify!

    • May 23, 2012

      Thanks Sarah!  I like your example of MagNation.  Suppliers have now realised the true value of their product and services.  Things are only worth what people are willing to pay.  I (want to) believe that consumers are well aware now that nothing comes for free and are willing to support the things they enjoy.

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