The Sorry State of Music Start Ups

The Sorry State Of Music Startups http://techcrunch.com/2009/03/27/the-sorry-state-of- harmony-startups/ TechCrunch calve Is approaching May 24-26 » The Sorry State Of Music Startups by Michael Arrington on Mar 27, 2009 Online be adrift music startups are in one very(prenominal) sorry place. On demand streaming rank range from .4 cents to 1 cent per stream this is what the startups cave in to the labels every time they play a song for a user. Add bandwidth and storage costs on top of that, which arent trivial for services that wishing to stream music promptly on demand. The result is hundreds of millions of dollars flowing from venture funds to startups to labels. diminutive of it declares its itinerary to artists, and advertising taxs only cover a tiny good deal of the fees. The labels dont care if the startups take currency, lose money or go out of business. all they want is to make enough money to extend the net surrender term as long as possib le. Thats when well finally chit-chat the economic reality dictated by the profits call in itself irrevocably on the music industry. Unless Draconian laws are created and apply that put people in jail, or worse, for file sharing. And even that in all probability wint shape. Anyway, these crazy economics are devising the music startups skittish.

MySpace Music, the biggest player in this space, may be expenditure $2 million or more per week to the music labels lay down on their own statistics that theyre streaming over a billion songs a week. Their streaming rate is likely to be the high hat in the industry, and it almost certainly isnt lower than .4 cents per song. in that location is no way that theyre making that ! much in advertising revenue. The hope is that downloads, tag sales, merchandise and ring tones pass on make up the difference, but what were hearing is that very little additive revenue is being made from these other revenue sources. That meat theres no chance for these startups to work until the labels reduce, significantly, the streaming...If you want to get a full essay, order it on our website: OrderEssay.net

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