ST Holdings have announced the removal of music content from a collection of popular music streaming services. The company, a distribution channel for record labels, have announced it on their site how they are dropping Spotify, Rdio, Napster and Simfy.
The reason why, well many of the labels that deal with ST Holdings feel they streaming services cannibalize the sales of albums through traditional means. They cite a NPD study that concludes streaming services deter users from buying music, not encourage users to buy more.
A statement form ST Holding on their blogs stated, “As a distributor we have to do what is best for our labels. The majority of which do not want their music on such services. They provide poor revenue and have a detrimental affect on sales. Add to that, the feeling that their music loses its specialness by its exploitation as a low value/free commodity. Quoting one of our labels “Let’s keep the music special, fuck Spotify””
They also stated that of the over 200 label’s they distribute, only 4 expressed interest to stay on these services. The rest are happy with the decision.