DEBATE: Is Spotify Good, or Bad for Music?

Spotify is a media player that has a unique twist similar to Rhapsody or modern-day Napster, except instead of paying for a monthly subscription you listen to your music for free. You search for an artist, and play the music by streaming their music directly. The artist get's paid by spotify on a per-listen basis, and there is an ocassional ad in the free version of spotify.

The first side of the argument claims that Spotify is reducing profits for record labels and artists that are already feeling the alleged cash crunch from illegal downloads, and other forms of online sharing. This side of the argument sees Spotify as a step in the wrong direction, further taking money from record labels, and artists instead of helping to fund their cause. There is some information floating around suggesting that Spotify does pay very little although the companies are very hush-hush about it.

The British Academy of Songwriters, Composers and Authors complained that Spotify's payments to songwriters are very small, and that the way they are calculated is crappy. the biggest detail to come from their information is the claim that, in a five-month period, Spotify users played f Lady Gaga's song Poker Face over 1 million times, and earned Gaga a whopping total of $167. What does that say for artists who don't get anywhere near 1,000,000 views?

Further evidence to support this theory comes in the news that Century Media Quit Spotify due to loss of album sales shortly after being added to the site.

The other side of the argument sees it as a good thing. At least companies are finally making money from all of those free album sales, no matter how little it is. The service is great, and most artists make the majority of their money from touring and selling merchandise anyway. The fact that Spotify has the potential to get their music to their listeners ears without any production cost is very appealing.

Sony supports this with this quote: "Spotify is a success. Not just in terms of users but also with regard to revenues for music companies. Spotify is now bigger than iTunes in terms of our monthly revenue in Sweden," Mark Dennis, head of digital music at Sony BMG Sweden, told The Local on Tuesday."