“Swifties” will face stiff competition from Apple Music, Pandora, Spotify and Tidal
Taylor Swift always knew that streaming services were trouble.
The Grammy winner is sick of fighting with the likes of Spotify and Apple Music over royalties and moving to set up a streaming service of her own, according to TMZ. Citing filed documents, the gossip site reported that Swift was seeking to create “Swifties,” a website “featuring non-downloadable multi-media content in the nature of audio recordings.” It could also retail music accessories and other entertainment services. A representative for Swift didn’t immediately respond to a request for comment.
If she goes ahead, Swift will be entering a fast growing but also saturated market. Fans streamed 250 billion tunes last year, up more than 80% on the year before, according to data from BuzzAngle. But the market is dominated by two giants in Apple and Spotify, which have a combined market share of around 56%. Additionally, Pandora is also today introducing Pandora Premium, an on-demand service that costs $10 monthly.
Swift has long been unhappy with the status quo, in which rights owners on average earn as little as $0.0072 per stream, according to Spotify Calculator. In 2014, the singer-songwriter pulled all her music from Spotify. Explaining her decision in an op-ed for the Wall Street Journal, Moneyish’s sister title, she wrote that such services have “shrunk the number of paid album sales recently.” In an open letter to Apple CEO Tim Cook the following year, Swift complained about artists not being paid royalties during a three-month free trial of Apple Music. The tech giant quickly backtracked.
That’s not to say that a young upstart can’t succeed in the brave new world of streaming. Jay-Z initially stumbled after he bought artist-friendly streaming service Tidal. But after securing exclusives to new albums by the likes of Beyoncé that led to millions of new subscribers, the service is now worth a reported $600 million.
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