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RE: I don't understand how downloading sites can lose money? How many employees do they need?

Although iI am unaware of the business structure of streaming services I do understand that there are two major costs to them, royalties and the cost of bandwidth. In regard to the latter there was a posting to one of my messages from Cookie Marenco of Blue Coast Records over on the Music forum from ( I think) early last year.

In regard to royalties they have to pay two parties, the record companies and the music publishers. One difficluty that they may face with the latter could be a royalty on effectively each title held on their servers as the mechanical right is not a performance right. However only a minority of titles produce revenue. I gather that for most (all?) of the streaming services only a comparatively small percentage of the repertoire held by them is ever accessed. However were they to restrict the titles to only those with a good chance of mass popularity then the service would offer an unattractive proposition to subscribers as they would then be something like a a top 100 albums only service.

How any of this specifically affected Classics Online we don't know but clearly something did. Given what ultinately became a limited offering I suspect that it simply did not attract a sufficient number of subscribers to cover the costs.


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  • RE: I don't understand how downloading sites can lose money? How many employees do they need? - PAR 00:34:19 01/24/17 (1)

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