On-Demand Music Streaming Has Won

Posted August 26th 2016


via Recode

This past week has seen headlines about three different companies each seeking new rights agreements with major music labels. Spotify is reportedly trying to lock in longer-term deals with the major labels ahead of its IPO. Amazon is apparently trying to secure rights to offer a cheaper subscription service that will only work on its Echo device. And Pandora is trying to sign U.S. and international rights in order to launch an on-demand streaming service.

Each of these stories tells us something about the state of the music streaming market and, taken together, they highlight some interesting trends.

Recode breaks down these trends and highlights the challenges of the current marketplace, from forming competitive differentiation to contending with major labels. One thing remains clear: on-demand is the only way forward.