Today was a sad day. We7, the free on-demand music streaming site that I have supported and enthused about since it’s inception has gone.
It’s still there in name, but definitely not in spirit, as it’s free service loved by many has reverted to a poorer version of last.fm’s radio service. It’s a struggle in the competitive online music world, of course, but in 2010 we7 proved that ad based free on demand services can work, and broke even for the first time since they began. Steve Purdham, CEO of We7, stated that
“Making ad-funded music on-demand add up has been our single ambition since we7 first started.”
and they succeeded. So why the sudden U-Turn?
Well, it’s what we want of course! It’s the users that have driven this change, we don’t want free on-demand music we want a random selection of ad interrupted radio. Clive Gardiner, SVP of Digital at We7, and also board member of the Entertainment Retailers Association (which speaks volumes) told me earlier today:
“we’ve evolved the site to meet how most users want their music which is unlimited personal radio…..over the last year and more we7 users chose ’sit back’ personal radio so we’re making it even easier”
Now, this is somewhat glossing over the fact that radio play costs about one third of the price of on demand play in terms of royalties, so while users of we7 are losing out, so the artists are the ones who suffer more (again) with this change. Listening on demand pays artists 66% more than they will get on we7 radio.
Yes, we can pay £5 a month for ad-free on demand, but surely that’s missing the point? On demand meant you can listen to the album before buying it. Artists win twice, ad paid on demand royalties, and if it’s good and worth buying, either physical format or itunes/e-music/amazon purchases into the bargain. I didn’t have to pay to preview albums in record shops all those years ago, and I don’t expect to pay to preview them now. If music is good, really good, most people will want to own it in some form. I think that fact is often overlooked.
We7, so critical of Spotify’s model which pays artists poultry amounts ($170 to Lady Gaga for over 1 million plays!) and who were quick to take the moral high ground just over 1 year ago, have now followed suit without any apparent feeling of shame or hypocrisy.
Reaction on twitter has been less than complimentary so far…
Dayvie:
“So, essentially, what was once free (& add supported) is now hidden behind a paid for subscription?”
MattEFro:
“Giving new #we7 site a chance. Trying alternative radio, first song fucking #mumford&sons. What a joke.”
Fieryyellow:
“50 songs cap on request makes it worthless. And how many marmite ads did I endure for this? Hate cuisine? Hate new we7!”
Curty_:
“wtf’s happened to @we7? only 50 track requests a month and some marmite advert playing over the top of them. #goodwhileitlasted”
I feel particularly sad as it seems nothing and nobody is beyond the corporate cashing in. Artists are not driving this change, the record industry is.
Meet the new boss, same as the old boss….