We’ve seen a lot of indications that Spotify is broken. First of all, Iggy Azalea’s album was one of the most played projects of the year through the streaming service. Just kidding about that being the problem… kind of.
Aside from that, rights holders have been asking for Spotify to encourage users to get the premium account ($9.99/month) by limiting free content, artists are questioning the service’s strategy, and the business model seems completely unsustainable. In 2013, Spotify generated over a billion dollars in revenue, and they still didn’t turn a profit.
It’s clear there’s a problem, but the problem isn’t just with Spotify, it’s with how we’ve been conditioned. For the past years, we’ve come to expect free music. This presents an obvious issue for anyone trying to make a living in the music industry, but Startup Musician has a three-step proposal, and it’s pretty convincing, although it may take some serious adjustments in the mindsets of consumers.
See the plan below: