STHoldings withdraws greater than 200 record labels from Spotify, does so with gusto

Nov 21st 2011
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STHoldings withdraws greater than 200 record labels from Spotify, does so with gusto

STHoldings stormed its way out of Spotify this week, leaving just a trail of choice words in its wake. On Wednesday, the distributor boldly withdrew greater than 200 of its record labels from Spotify, Rdio, Simfy and Napster, following the discharge of a study that cast the music subscription industry in a slightly unfavorable light. Consistent with the research, done by NPD Group and NARM, cloud-based services like Spotify and Rdio deter consumers from purchasing music via other channels. Amid concerns that these companies may “cannibalise the revenues of more traditional digital services,” STHoldings decided to withdraw its catalogue of greater than 200 labels. Actually, of the 238 labels consulted at the decision, just four expressed a want to remain with Spotify, et al.

“As a distributor we need to do what’s best for our labels,” STHoldings explained, in a press release. “Nearly all of which are not looking for their music on such services as a result of poor revenues and the detrimental affect on sales. Add to that the sensation that their music loses its specialness by its exploitation as a low value/free commodity.” The distributor went directly to quote considered one of its labels with a line that rhymes with “duck modify.” In comparatively subdued response, Spotify said it respects STHoldings’ decision, but still hopes that the labels “will change their minds.” The Swedish company also contested STHoldings’ study-backed arguments against it, claiming that it has “already convinced millions of customers to pay for music again,” and assuring that artists’ revenue streams will “keep growing.” Read more concerning the study, the stats and the spat on the links below.

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