Sony Music Chief Advocates for Paid Streaming Services Over Free Options
Sony Music Group chairman Rob Stringer recently addressed investors at the parent company’s 2024 business segment meeting, where he highlighted the company’s continued success and record-breaking revenue. With a focus on the growth of streaming revenue and the importance of paid streaming services, Stringer called for an end to free ad-funded streaming models.
Over the past year, Sony Music Group has seen significant achievements in the music industry, with successful releases from artists like SZA, Bad Bunny, Harry Styles, and more. The company’s market share has continued to rise, particularly in the US, where they have exceeded a new peak of 27% frontline share of overall consumption.
Stringer emphasized the importance of paid streaming accounts, which have driven 73% of overall streaming revenue. However, he also highlighted the challenges posed by free ad-funded services, which are utilized by around 2.5 billion users. Stringer pointed out that the price gap between free and paid services has widened, calling for a more equitable monetization model for free tiers.
In addition to advocating for paid streaming services, Stringer addressed issues surrounding AI-generated content and the need for responsible partnerships to protect artists’ rights. Sony Music Group has taken a proactive approach to combatting unauthorized use of AI models, issuing takedowns of over 20,000 AI-generated soundalikes of its artists.
As the music industry continues to evolve, Sony Music Group remains committed to innovation and sustainable business practices. Stringer’s remarks underscore the company’s dedication to supporting artists, enhancing the value of music streaming, and driving positive change in the industry.
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