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Originally Posted by Chris
Well, I don't know how many, but I have been playing with Grooveshark this week and it hasn't disappointed me so far - everything I have searched for has been in their catalogue.
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That's because, in most of the searches you'll be doing, most of that 'catalogue' has been uploaded by the users of the service. They have not been provided by a legal agreement with the record companies, people have uploaded whatever they want to it. It's basically a streaming P2P service. It's
legal status is dodgy.
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What Spotify appears to have forgotten is that the customer is always right ... by that I mean, if you offer two services (as Spotify did), and one of them is six times more popular than the other, then Spotify should be looking at ways to maximise its income from that service, not looking for ways to wreck it in order to force people onto the less popular alternative.
We do pay for music - we pay for it on commercial radio every day by listening to commercials. That's how 6 out of every 7 customers was happy to pay for it on Spotify's service.
I think what is really at the heart of this is Spotify's failure to agree a sustainable deal with the record labels.
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I think whatever is the case, it wasn't able to provide music for free and make a profit. It may be the record companies asking too much, it may simply be that advertising didn't cover the cost of a reasonable deal with those companies.