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In Reply to: RE: "The wider public will always choose the cheaper option as long as it's an option." posted by David Smith on September 06, 2014 at 10:45:02
but you keep mentioning the $10 per month plan which is the MOST EXPENSIVE and the ONLY ONE with 320Kpps sound quality! ;-)
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And true that $10/mo subscribers only accounts for a portion of Spotify users. I cite that rate because it seems to be the standard rate available for unlimited use of any of the major streaming services. None of them are sustainable.
I don't know specifically at what rate it's sustainable. Perhaps if every household in the US did subscribe at $10/mo it would work. Perhaps given a realistic rate of subscription it would need to be $50/mo to be sustainable. What I do know is the current rates (in whatever distribution they exist) are paltry and it takes tens of thousands of plays to equal the revenue of a single album purchase on iTunes. The rate of revenue is far, far short of being sustainable, and is not a matter of a few more people signing up.
Dave
At over 115 Million US households, yeah might work. That would produce roughly twice the current US music industry revenues of $7 Billion.But then I have friends who pay $220 a month to Comcast.
I think the number will be between $20 and $40 for unlimited lossless FLAC if and when it gets here, and with the faster cellular data and faster internet connections, that should be sustainable over the long haul.
Edits: 09/06/14
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