Spotify shows that the music industry has got it wrong

The news this morning that Spotify has tweaked the membership options of the online music service has been tweaked has drawn equal comments that “this is the end” and “congratulations on the innovation.” As with everything I suspect the truth is somewhere in between.

I’ll leave the discussions of what the membership changes mean to Spotify as a business to other sites, but what I would say here is that if Spotify, which has a strong membership who are happy to pay £10 a month for online music – and that still isn’t enough to satisfy the big music labels and their voracious appetite for profiting from “Hot Rocks” by the Rolling Stones for the umpteenth time, then perhaps Spotify isn’t broken, but the idea of the big labels and a cash cow is.

After all, here’s a young company offering you some money from music listeners when your own Vice President says that “you are not going to stop music piracy”.

Wouldn’t it be far better to settle for a bit less money than you are used to, rather than running your company into the ground over the next ten years?