Warner Withdraws From Streaming Services

Major record label Warner Music -- home of R.E.M. and the Flaming Lips (pictured) amongst others -- has announced that it is to stop licensing its music to free streaming services such as Spotify, Last.fm and We7. The services, which offer music fans free, legal and instant access to a vast catalogue of material, have been denounced by the label as "clearly not positive for the industry."

Warner chief executive Edgar Bronfman Jr said, "Free streaming services are clearly not net positive for the industry and as far as Warner Music is concerned will not be licensed.

"The 'get all your music you want for free, and then maybe with a few bells and whistles we can move you to a premium price' strategy is not the kind of approach to business that we will be supporting in the future."

Instead, the executive was keen to promote streaming services that require payment. However, other industry figures disagree with Mr Bronfman's point of view.

"Spotify is a very sustainable financial model -- full stop," said Rob Wells, senior vice-president of Universal Music Group International.

Jon Webster, C.E.O. of the U.K. Music Manager's Forum, said that the industry should back services that prevent online piracy. He said, "New media has to give the consumer what they want and the consumer is in a world where they want things right here, right now - and if you don't give it to them, they'll steal it."

It is not clear whether the label plans to withdraw its material from existing services or whether they'll refuse to work with anyone entering the already competitive streaming marketplace.