The role of record labels in the music streaming business is big. How big?

What it all boils down to

Last week I wrote about the new RIAA numbers that showed how streaming is now almost a third of “music industry revenues.” I also said how the industry hasn’t seemed to figure streaming pricing out and I was glad that Rdio was trying a new tier called Rdio Select for $4 a month for a limited music selection.

Then yesterday the Verge wrote about the Sony-Spotify contract signed in January 2011 that explains a lot about why streaming isn’t working quite yet. Why? Even though there are a lot of positive trends, it seems like the same, traditional powerhouses, the labels, still hold too much power and while they are using it to line their pockets, this might be stifling the industry.

Let’s look at the four players again, shall we?

  • Users. Adoption of streaming is growing at the expense of physical purchases and digital downloads. Nothing new. But remember…

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