Alphabet’s YouTube Defends Ad-Supported Music – Motley Fool

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Image source: YouTube.

For the longest time, the music industry hated streaming services. That was largely due to the prevalence of ad-supported services. Not only is ad revenue relatively modest in terms of what an average artist actually receives, but granting free access to consumers cheapens the value perception of music as a content category. It’s a dangerous mentality and the expectation of free music if you endure a few ads does not bode well for the industry’s economics.

As the market leader, Spotify has borne the brunt of these criticisms, and the music streamer often must defend itself when artists complain every few months about paltry payouts. The good news is that Spotify has done well at converting free subscribers to paid subscribers. As of September 2016, Spotify had 40 million paid…

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