Taylor Swift's decision to pull her music from Spotify — in large part because of its ad-supported free service — has gotten the attention of another entertainment giant. As reported by The Wall Street Journal, Sony Music CFO Kevin Kelleher said the world's second-largest music company is re-evaluating its approach to streaming services like Spotify.
"Actually, a lot of conversation has taken place over the last week in the light of that," Kelleher said regarding Swift's disappearance from Spotify. "What it all really comes down to is how much value are the music company and the artist getting from the different consumption methods." Of course, that doesn't mean that the massive amount of music distributed by Sony is going to go away soon, but at the very least the company is unsurprisingly asking the question of what strategy will make it the most money going forward.
Part of that equation is how quickly these free services can manage to convert users into one of their paid tiers. "The key question is, are the free, ad-supported services taking away from how quickly and to what extent we can grow those paid services?" Kelleher said. He said that he was "very encouraged" by the growth of the paid subscription services — and given Spotify's strategy of using a free tier to help push users towards its paid tier, we'd be surprised to see Sony Music disappear from the service any time soon. Still, Taylor Swift's bold move has clearly made it a consideration at the very least.