Spotify Managing Director Kate Vale thinks the online music streaming market will shake out in the next few years, with some of the current players folding.
Of course she hopes Spotify will be one of the survivors.
Kate Vale was speaking in a Mumbrella Google Hangout session discussing the future of music streaming companies in Australia, the 6th largest music market in the world.
Asked about the crowded Australian streaming music market, and whether it is sustainable with all the current companies in the market right now, she said:
“It is absolutely not sustainable… the Australian market is pretty attractive, it’s the 6th largest music market in the world, we spend more per capita than other huge countries around the world [but] what you see in most markets is that it’s not sustainable…
“What generally happens is that 3 or 4 players will succeed… I’d like to think that in a few years time we will be one of those survivors…
“For us to survive, we need to stay ahead of the curve and make sure we maintain a good market share… and constantly innovate.”
With radio companies in Australia aligning themselves with a variety of streaming services, they will be hoping that they have picked the right one if Vale’s prediction is correct. Kate Vale joined Spotify in 2011, after working for Google Australia and previously YouTube.
Following up the interview, an article in Music Network today quoted Vale further discussing her competition.
“People like to compare us to this competitor or that competitor, but our biggest competitor, hands down, is piracy. Around 2.8 million Australians download music illegally via file sharing networks every year, three quarters of these claim to download every month. On average, Australians illegally download approximately 30 songs a month, which totals a staggering one billion songs per year…
According to The Music Network, Vale anticipates the Australian market will follow countries like Norway where years of lobbying for tougher anti-piracy laws saw music revenue rise exponentially and piracy drop to less than one fifth of the original level.
The full Mumbrella interview is below.