Video & Audio|November 23, 2011| Author: Kim LaCapria|Tags: ,

Spotify, Rdio Lose Nearly 240 Indie Labels as Distributor Pulls Content on ‘Cannibalization’ Fears

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When Spotify hit US shores, it created a tremendous buzz among users and quickly caught on- if the constant updates to our Facebook feeds are anything to go on.

And while the service got its hooks into users with alacrity, another contingent has not shown the same love to the service and its ilk as streaming sites like Spotify, Pandora and Rdio catch on with web users- labels. Indie labels in particular- which, to be fair, have seen the impact of reduced payouts from streaming activity– have been vocal about eschewing the service despite the massive exposure it brings, along with potential sales. (High profile artists like Adele and Coldplay have also infamously rejected the opportunity to stream their hugely popular releases this year.)

Another indie distributor has yanked content from services like Spotify and Rdio, this time taking 238 labels with it. UK-based STHoldings had this to say about its decision to not stream its labels’ music on the sites:

“As a distributor we have to do what is best for our labels. The majority of which do not want their music on such services. They provide poor revenue and have a detrimental affect on sales. Add to that, the feeling that their music loses its specialness by its exploitation as a low value/free commodity.”

Has lack of availability for a desired service kept you from relying solely or largely on services like Spotify so far?