Wednesday, January 30, 2013

Metallica Sales Down After Joining Spotify; Predict Streaming Will Eventually Win Out

The management for Metallica are spinning the numbers released by Billboard on Metallica's album sales after they put their music on Spotify.

The magazine took a look at the band's album sales for the four weeks before Christmas from 2008 through 2012 and found that the numbers dropped 15% in the week after December 6 when Metallica's music was first made available for streaming and 35% in the second week. 

Cliff Burnstein of Q Prime who manages Metallica has told the New York Times that its nothing to worry about. "There is a point at which there could be 100 percent cannibalization, and we would make more money through subscriptions services. We calculate that point at approximately 20 million worldwide subscribers."

For reference, Spotify only has five million paying subscribers worldwide but they are growing both in countries where they are already established and are expanding into new regions. 

3 comments:

Anonymous said...

Did the analysis take into account the fact that in December 2008, Metallica had very recently released their latest album, which likely led to an increase in sales? They've just finished touring too; could the sales drop be completely coincidental with their joining Spotify?

Anonymous said...

This outfit sure does complain a lot about their sales figures. Comes across like a whinny baby to me. Funny that they are supposed to be a tough metal outfit & mgmt group.

If they are half as smart as they think they are, they should figure out a better way to get ahead of the changing sales realities of the music business today.

Anonymous said...

^^ Where do you see any whining? Their manager is responding to a piece Billboard did about a decline in sales after putting their catalog on Spotify.

What Billboard doesn't take into account is that most bands see a decline immediately following Christmas.

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