Over 200 Labels Withdraw from Spotify and Rdio

Spotify Founders Daniel Ek & Martin Lorentzon (via Spotify PR)

Duncan Geere:

Following a study that claims that streaming music is damaging to record sales, a distributor representing more than 200 labels has withdrawn its entire catalogue from Spotify, Napster, Simfy and Rdio.

Geere makes the argument that this exodus might prove to be representative of an impending collapse for the streaming industry. I'm inclined to disagree.

Realistically, one distributor, STHoldings, has withdrawn following one study. The majority of large labels and distributors are still on board. For reference, here is a list of STHoldings' labels.

Streaming is likely to become the future for the music industry, which is expected to provoke hesitancy in streaming service partners. Just as labels have come and gone from iTunes, the vast majority have resigned to the fact that their industry's business model is changing, and are reluctantly abiding by the changing marketplace's terms.

That's not to say that streaming services offer perfect business models -- they don't. There have been issues over royalties since Spotify and Rdio's respective launches. But with iTunes Match, Google Music, and other large players shifting toward streaming, I'd argue that the streaming industry is not set to die out any time soon. So while a large quantity of labels may have jumped ship today, I wouldn't be surprised to see them back in future, and in greater quantities.