© REUTERS/Issei Kato
During Sony Group’s annual business strategy meeting, Sony Music boss Rob Stringer floated an unconventional proposal: Making “free” music streaming a thing of the past.
In his presentation, Stringer argued that while paid subscriptions are still hugely valuable, streaming services are leaving money on the table by offering unlimited, ad-supported music for nada. As platforms gain more users in mature markets, he thinks it’s time to narrow the gap between paid and “free.”
Stringer’s solution? Ditch true free streaming altogether. Instead, he envisions ad-supported tiers generating revenue from listeners chipping in a “few bucks” on top of ads. According to Stringer, this “freemium-plus” model could elevate half-paid, half-promoted streaming beyond just a funnel to subscriptions.
You’d think asking folks to pay for what used to be free tunes is nuts. But Stringer believes that when it comes to accessing millions of songs, music fans will pony up a little cash if the price is right.
Sony Music isn’t alone in feeling free streaming’s financial formula needs an update. Earlier this year, the company’s digital honcho Dennis Kooker also called for re-examining freemium monetization as the industry expands its reach.
Stringer clearly aims to maximize profits as music streaming matures. But will the platforms get on board with curbing “free” tunes altogether? We’ll know soon.
