Just days after music streaming service Spotify launched in Australia, news is emerging that Rdio, a similar service that debuted here earlier this year, could implement a new payment incentive for artists.
Such an incentive is being viewed as a method of winning over sections of the music industry who have long been critical of the artist royalties that streaming services pay to artists. It also comes at a time that market share is being fought over with increasing fevour, now that subsciption services are being embraced around the world.
According to Billboard, who cite sources within Rdio, as much as $10 could be paid to an artist for each new subscriber they bring to the service. Such a system could provide quite a windfall for artists, depending on their size. The story writes that, "Rdio's scheme could also make it the most pro-artist service of the bunch."
Locally, artists greeted Spotify's launch with mixed reactions - even though the launch's press release came with growing quotes from across the industry. Hilltop Hoods described the platform as "terrifying"earlier this week.
Just got Spotify.Wow.As an artist this is terrifying.As a fan this is rad.
— Hilltop Hoods (@hilltophoods) May 24, 2012
When a fan asked why this was they replied, "Albums take time & money to create. Cloud services pay a nominal fee compared to album sales."
