Streaming services are trying to turn one of piracy’s main attractions—unlimited consumption—into a business. Labels and artists, originally worried that streaming would hurt digital downloads, have started to sing a different tune. Fees from streamed songs are a small fraction of those from downloads (let alone from physical CDs), but if a song catches on, it can be played obsessively, and all those pennies in the jar add up. Spotify is now second only to iTunes as a single revenue source for the main record labels.
Mobile-device makers are keenly adopting music streaming as a way to differentiate their products. But the providers of streaming services also have their sights on an even bigger music-player: the car. Americans spend around two hours a day listening to radio, much of it while they commute. As streaming services become integrated with cars’ infotainment systems, drivers will use them more. And then the battle will not just be between streaming and downloading providers, but with radio stations, which risk getting tuned out.
