Tim Carmody on The Verge:
But even while streaming looks inevitable, in many ways its outlook is still grim — and it all comes down to money. Apple and music labels are reportedly still far apart on how much revenue they should share. Spotify wants music labels to lower the rates it pays as it tries to edge into profitability. Finally, Pandora’s CEO suddenly announced his resignation after a record loss and his inability to move Congress to pass legislation to lower its statutory royalty rate. The growth of ad-supported and subscription services alone simply hasn’t been enough to change the fundamentals of the business.
The answer to the question is simple – the labels will make money from streaming music, as countless streaming music solutions will try to tilt at the windmill and hope to catch lightning in a Web 2.0 bottle. Much like the countless indie singers and bands who sign up with the labels in the hope they can make it big.
Sounds like the labels have found their new business model. Dreams. Which is the same as the old business model.