What Spotify’s Video Ads Mean For The Future Of Recorded Music
Spotify announced today that it would begin using video ads–in either 15 or 30-second increments. A 30-second video ad, for example, would net the listener 30 minutes of ad-free listening time.
At this point it seems that there are only two ways recorded music continues to survive. Either companies eventually subsidize it until all recorded music is free and paying for it isn’t an option, or streaming music services lower the price to the point of widespread mass adoption.
As Spotify further explores monetizing its 30 million free users–versus 10 million paying–with video ads, the subsidization option looks to be the most realistic. At a certain point artists trying to make a career in music likely won’t even accept direct payment from fans because few will be willing to pay what advertisers or corporate sponsors will pay.
Samsung spent nearly $14 billion on marketing in 2013, while
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