Isn\’t this just amazing about Thom Yorke?

July 16, Thom Yorke slags off Spotify and recommends that musicians leave the service. July 18 Thom Yorke and friends launch a new music streaming service.

An astonishing coincidence that.

9 thoughts on “Isn\’t this just amazing about Thom Yorke?”

  1. As an economist, I’d expect you to at least mention the respective royalty rates each service pays to musicians. Yorke claims that his gripe with Spotify is that it pays too little to musicians. If this rival service pays no better than Spotify, but Yorke is a shareholder in the new service, then, yes, you’ve won the argument and he’s a scumbag. But if it pays better royalty rates his point stands.

    Yorke is from the last generation of musicians to have made loads of money from their music before the internet transformed everything. So his perspective may be informative.

  2. in a suitably free-ranging economy you can almost see a United Artists approach coming, assuming that all of those rock stars can check their egos at the door and agree on stuff; retain artistic control and split the revenues on some kind of partnership/communist basis, withdraw music from other services and establish an artist-based monopoly.

  3. “The current United Artists … is now a fully owned subsidiary of MGM, which itself is owned by MGM Holdings.”

    It never did live up to expectations.

  4. georgesdelatour,

    But right now, Spotify is losing money. Lots of money. I’m not sure what the long term plan is, but I doubt that someone can come along and do the same thing and pay higher royalties (unless they raise the costs).

    It might be that this service pays a higher royalty, but I doubt people will get a lot of hits as most live performances are strictly for the fans.

  5. Tim Almond

    Do you have any sources for the apparent hemorrage of money out of Spotify? The Wikipedia entry gives the impression everything is roses.

    It’s complicated. I think the major labels are co-owners of Spotify.

  6. If the music’s good enough there’s more money there than there’s ever been

    $558,255,524 The Rolling Stones A Bigger Bang Tour 2005–07

    Stop moaning and write something good, Thom

  7. georgesdelatour,

    This is from March http://readwrite.com/2013/03/13/spotify-six-million-paid-subscribers-growth-quick-enough#awesm=~obZns44QMpu9dV

    “Profit is another story. The company says it pays out about 70% of its revenue to rights holders. So, if it does hit $1 billion this year, it will be paying out $700 million of that to labels, songwriters and other rights holders. That leaves $300 million for compensation, operating costs, marketing and the like. When all is said and done, there’s probably not a ton of cash left over. “

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