LUCIAN GRAINGE ON FREE VS. PAID STREAMING
We asked UMG topper Lucian Grainge to elaborate on some of the questions that have been swirling around streaming music--particularly the question of "freemium" (free, ad-supported streaming) versus premium, subscription-based access. Here's what he told us.
"Let me be clear: there is a role for ad-supported 'free' streaming--both as a business model and as a consumer offer.
What I’ve said is that unlimited, ad-supported 'free' streaming, by itself, isn’t enough to support a robust ecosystem. If it were to become the main form of consumption in most geographies, it wouldn’t provide enough revenue for the services themselves to run a sustainable business, nor for content companies to maintain their level of investment in new music.
Most importantly, as we’ve all been hearing loud and clear from the creative community, it wouldn’t provide enough to compensate artists properly.
Ultimately, we are here to serve our artists and that’s why we all have to work together–artists, music companies, services–to make sure we are delivering a great experience for fans and fair compensation for creators."
For Grainge's Code/Media interview, with lengthy commentary on these and other pressing matters, see the video below:
