Michael Robertson of MP3Tunes on the otherworldly demands the major record labels have for digital music services:
With most other businesses, if a supplier makes unreasonable demands, a retailer can turn to other providers. Since copyright law gives record labels and publishers a government-granted monopoly, no such option is possible with music. Digital vendors have only two options: Accept the terms or not include those songs in their offering.
It’s a ridiculous situation that innovative companies like Spotify are beholden to such lazy companies as the major record labels. The terms of their deals are so laughably one-sided that it’s almost unbelievable. Could you imagine going into a “normal” business negotiation with these?
Hopefully, as time goes on, and the majors’ artist rosters dwindle from relevant new acts eschewing them, the tables will turn. Yes, the majors’ will always have their catalog, but if things continue on their current path, they may be forced to license out the catalog at a discounted rate in order to stay relevant.
via GigaOM.