The Majors Really Hate the Cloud. Just Ask mSpot

Streaming Class Action

Not-so-little mSpot has had a cloud-based music service for months, yet they are likely to get eclipsed by the likes of Amazon, Google, and Apple.

So goes the game, and this is one thunderstorm that could be tough to weather.  But instead of enabling licensing to sell MP3s within their cloud structure, major labels eventually denied those permissions.  mSpot pushed forward without a commerce package.

But why?  “Higher-ups at the labels decided they didn’t like the cloud model,” mSpot executive Kathryn Shantz told Digital Music News.  “Requiring licences on music that has already been purchased means passing on costs to consumers, and that’s a hard sell all around…  Adding a music store was mSpot’s first choice but the labels did not give us this option.”

This is an interesting glimpse into the very complicated process of cloud-based licensing, one that is now playing out with said heavyweights.  And according to Shantz, the majors ultimately lost a big monetization opportunity.  “Buying and storing music really go hand-in-hand for the consumer,” Shantz said.  “This is where the industry stands to make money by selling music. Why?  Because you can just press play.”

Meanwhile, mSpot is busy building a music discovery service.  That is, one that bypasses label licensing negotiations, though PROs will be paid according to the company.  Expect something in about six weeks time.  At present, the mSpot app has been download 1.2 million times across Android and iPhone devices.