The record label Warner Music has stated that it will stop licensing its songs to free music streaming services. This will have an impact upon companies such as Spotify, We7 and Last.fm. These companies provide free, legal and instant access to millions of songs funded by adverts. Warner is one of the major music labels in the world, whose artists include REM and Michael Buble. Warner has chosen to withdraw from providing the music due the services not being positive for the industry. This news has led to numerous questions being raised surrounding the future of free music streaming services. Spotify has seven million users in six European countries and is in negotiations to launch in the US.
Ninety five per cent of those fans use its free service, hearing adverts between songs, while 250,00 pay a monthly fee to get it on a mobile and with no ads. The chief executive for Warner, Edgar Bronfman has said, “free streaming services are clearly not net positive for the industry and as far as Warner Music is concerned will not be licensed. The get all your music you want fro free, and then maybe with a few bills and whistles we can move you to a premium price strategy is not the kind of approach to business that we will be supporting in the future”. This move by Warner may now lead to numerous other recording companies pulling their music from the free services.