No, Beatport’s subscription will not kill music – here’s how it really works
Friday May 17, 2019. 08:18 PM , from Create Digital Music
Pioneer and Beatport this week announced new streaming offerings for DJs. And then lots of people kind of freaked out. Let’s see what’s actually going on, if any of it is useful to DJs and music lovers, and what we should or shouldn’t worry about.
Artists, labels, and DJs are understandably on edge about digital music subscriptions – and thoughtless DJing. Independent music makers tend not to see any useful revenue or fan acquisition from streaming. So the fear is that a move to the kinds of pricing on Spotify, Amazon, and Apple services would be devastating.
And, well – that’s totally right, you obviously should be afraid of those things if you’re making music. Forget even getting rich – if big services take over, just getting heard could become an expensive endeavor, a trend we’ve already begun to see.
So I talked to Beatport to get some clarity on what they’re doing. We’re fortunate now that the person doing artist and label relations for Beatport is Heiko Hoffmann, who has an enormous resume in the trenches of the German electronic underground, including some 17 years under his belt as editor of Groove, which has had about as much a reputation as any German-language rag when it comes to credibility.
Beatport LINK: fifteen bucks a month, but aimed at beginners – 128k only. Use it for previews if you’re a serious Beatport user, recommend it to your friends bugging you about how they should start DJing, and otherwise don’t worry about it.
Beatport CLOUD: five bucks a month, gives you sync for your Beatport collection. Included in the other stuff here and – saves you losing your Beatport purchases and gives you previews. 128k only. Will work with Rekordbox in the fall, but you’ll want to pay extra for extra features (or stick with your existing download approach).
Beatport LINK PRO: the real news – but it’s not here yet. Works with Rekordbox, costs 40-60 bucks, but isn’t entirely unlimited. Won’t destroy music (uh, not saying something else won’t, but this won’t). The first sign of real streaming DJs – but the companies catering to serious DJs aren’t going to give away the farm the way Apple and Spotify have. In fact, if there’s any problem here, it’s that no one will buy this – but that’s Beatport’s problem, not yours (as it should be).
WeDJ streaming is for beginners, not Pioneer pros
This first point is probably the most important. Beatport (and SoundCloud) have each created a subscription offering that works exclusively with Pioneer’s WeDJ mobile DJ tool. That is, neither of these works with Rekordbox – not yet.
Just in case there’s any doubt, Pioneer has literally made the dominant product image photo some people DJing in their kitchen. So there you go: Rekordbox and and CDJ and TORAIZ equals nightclub, WeDJ equals countertop next to a pan of fajitas.
So yeah, SoundCloud streaming is now in a DJ app. And Beatport is offering its catalog of tracks for US$14.99 a month for the beta, which is a pretty phenomenally low price – and one that would rightfully scare labels and artists.
But it’s important this is in WeDJ as far as DJing. Pioneer aren’t planning on endangering their business ecosystem in Rekordbox, higher-end controllers, and standalone hardware like the CDJ. They’re trying to attract the beginners in the hopes that some of those people will expand the high end market down the road.
By the same token, it’d be incredibly short-sighted if Beatport were to give up on customers paying a hundred bucks a month or so on downloads just to chase growth. Instead, Beatport will split its offerings into a consumer/beginner product (LINK for WeDJ) and two products for serious DJs (LINK Pro and Beatport CLOUD).
And there’s reason to believe that what disrupts the consumer/beginner side might not make ripples when it comes to pros – as we’ve been there already. Spotify is in Algoriddim’s djay. It’s actually a really solid product. But the djay user base doesn’t impact what people use in the clubs, where the CDJ (or sometimes Serato or TRAKTOR) reign supreme. So if streaming in DJ software were going to crash the download market, you could argue it would have happened already.
That’s still a precarious situation, so let’s break down the different Beatport options, both to see how they’ll impact music makers’ business – and whether they’re something you might want to use yourself.
Ce n’est pas un CDJ.
Beatport LINK – the beginner one
First, that consumer service – yeah, it’s fifteen bucks a month and includes the Beatport catalog. But it’s quality-limited and works only in the WeDJ app (and with the fairly toy-like new DDJ-200 controller, which I’ll look at separately).
Who’s it for? “The Beginner DJs that are just starting out will have millions of tracks to practice and play with,” says Heiko. “Previously, a lot of this market would have been lost to piracy. The bit rate is 128kbs AAC and is not meant for public performance.”
But us serious Beatport users might want to mess around with it, too – it’s a place you can audition new tracks for a fairly low monthly fee. “It’s like having a record shop in your home,” says Heiko.
If you think fifteen bucks a month for everything Beatport is a terrible business idea, don’t worry – Beatport agree. “This is the first of our Beatport LINK products,” says Heiko. “This is not a ‘Spotify for dance music.’ It’s a streaming service for DJs and makes Beatport’s extensive electronic music catalog available to stream audio into the WeDJ app.” The bigger picture looks to higher quality streams, offline ‘locker,’ and the stuff serious DJs will need. And yeah, Beatport want more money for that, which is good – because you want more money charged for that as a producer or label. But before we get to that, let’s talk about the ‘sync’ option, the other thing available now:
WeDJ – a mobile gateway drug for DJs, or so Pioneer hopes. (NI and Algoriddim did it first; let’s see who does it better.)
How you get paid: Heiko explains: “We create a royalty pool to share with all labels and then distribute based on number of plays. The per-play pay fee will change depending on subscriptions/plays.”
By the way, part of the problem with iTunes was that Apple – who care more about you buying iPhones, presumably, than they do music downloads – more or less buried download sales once they went with subscriptions. So since Beatport is still in the download business, will LINK try to direct some of these new and beginning DJs to the store?
The answer is yes; Beatport tells us they’re investigating how to do this, but there will be at least an initial effort. “For the launch of the Rekordbox integration we will have a page with curated playlists and charts (by our curation team but also by labels, DJs and other partners) to discover music for LINK and also to download it, says Heiko.”
Beatport CLOUD – the sync one
Okay, so streaming may be destroying music but … you’ve probably still sometimes wanted to have access to digital downloads you’ve bought without having to worry about hard drive management or drive and laptop failures.
Beatport CLOUD does that, the sync/locker making a comeback, with €/$ 4.99 a month fee and no obligation or contract. It’s also included free in LINK – so for me, for instance, since I hate promos and like to dig for my own music even as press and DJ, I’m seriously thinking of the fifteen bucks to get full streaming previews, mixing in WeDJ, and CLOUD.
There are some other features here, too:
Re-download anything, unlimited. I heard from a friend – let’s call him Pietro Kerning – that maybe a stupid amount of music he’d (uh, or “she’d”) bought on Beatport was now scattered across a random assortment of hard drives. I would never do such a thing, because I organize everything immaculately in all aspects of my life in a manner becoming a true professional, but now this “friend” will easily be able to grab music anywhere in the event of that last-minute DJ gig.
By the same token you can:
Filter all your existing music in a cloud library. Not that I need to, perfectly organized individual, but you slobs need this, of course.
Needle-drop full previews. Hear 120 seconds from anywhere in a track – for better informed purchases. (Frankly, this makes me calmer as a label owner, even – I would totally rather you hear more of our music.)
There should be some obvious bad news here – this only works with Beatport purchased music. You can’t upload music the way some services have worked in the past. But I think given the current legal landscape, if you want that, set up your own backup server.
What I like about this, at least, is that this store isn’t losing stuff you’ve bought from them. (Bandcamp does a nice job in this respect – and of course it’s the store I use the most when not using Beatport.)
Update: I got a couple of questions on this tier – mainly, why it’s five bucks, and where that money goes. I’m unclear whether this fee, download limits, and previews are entirely Beatport-related, or whether they also tie into rights management and deals with the labels, so I’ll try to find that out. I also do wonder if Beatport will need to add more functionality to this or the ‘pro’ tiers to entice users. But we’ll see.
The new Beatport cloud.
How you get paid: Yes, CLOUD adds a fee – and that fee does go partly to you. “CLOUD provides two additional services” say Heiko. “The revenue from CLOUD will be shared with labels/suppliers.”
Beatport LINK Pro – what’s coming
There are very few cases where someone says, “hey, good news – this will be expensive.” But music right now is a special case. And it’s good news that Beatport is launching a more expensive service.
For labels and artists, it means a serious chance to stay alive. (I mean, even for a label doing a tiny amount of download sales, this can mean that little bit of cash to pay the mastering engineer and the person who did the design for the cover, or to host a showcase in your local club.)
For serious users using that service, it means a higher quality way of getting music than other subscription services – and that you support the people who make the music you love, so they keep using it.
Or, at least, that’s the hope.
What Beatport is offering at the “pro” tiers does more and costs more. Just like Pioneer doesn’t want you to stop buying CDJs just because they have a cheap controller and app, Beatport doesn’t want you to stop spending money for music just because they have a subscription for that controller and app. Heiko explains:
With the upcoming Pioneer rekordbox integration, Beatport will roll out two new plans – Beatport LINK Pro and Beatport LINK Pro+ – with an offline locker and 256kbps AAC audio quality (which is equivalent to 320kbps MP3, but you’re the expert here). This will be club ready, but will be aimed at DJs who take their laptops to clubs, for now. They will cost €39,99/month and €59,99/month depending on how many tracks you can put in the offline locker (50 and 100 respectively).
You’ll get streaming inside Rekordbox with the basic LINK, too – but only at 128k. So it’ll work for previewing and trying out mixes, but the idea is you’ll still pay more for higher quality. (And of course that also still means paying more to work with CDJs, which is also a big deal.)
And yeah, Beatport agree with me. “We think streaming for professional DJ use should be priced higher,” says Heiko. “And we also need to be sure that this is not biting into the indie labels and artists (and therefore also Beatport’s own) revenues,” he says.
What Heiko doesn’t say is that this could increase spending, but I think it actually could. Looking at my own purchase habits and talking to others, a lot of times you look back and spend $100 for a big gig, but then lapse a few months. A subscription fee might actually encourage you to spend more and keep your catalog up to date gig to gig.
It’s also fair to hope this could be good for under-the-radar labels and artists even relative to the status quo. If serious DJs are locked into subscription plans, they might well take a chance on lesser known labels and artists since they’re already paying. I don’t want to be overly optimistic, though – a lot of this will be down to how Beatport handles its editorial offerings and UX on the site as this subscription grows. That means it’s good someone like Heiko is handling relations, though, as I expect he’ll be hearing from us.
Really, one very plausible scenario is that streaming DJing doesn’t catch on initially because it’s more expensive – and people in the DJ world may stick to downloads. A lot of that in turn depends on things like how 5G rolls out worldwide (which right now involves a major battle between the US government and Chinese hardware vendor Huawei, among other things), plus how Pioneer deals with a “Streaming CDJ.”
The point is, you shouldn’t have to worry about any of that. And there’s no rush – smart companies like Beatport will charge sustainable amounts of money for subscriptions and move slowly. The thing to be afraid of is if Apple or Spotify rush out a DJ product and, like, destroy independent music. If they try it, we should fight back.
How you get paid: The PRO rates will represent a higher rate than what you get from the standard LINK services – because of the higher fee. And it’s more like the fee you get from downloads, not the cents-per-play trainwreck that is services like Beatport.
“The revenue share for LINK streaming between Beatport and the labels/suppliers (depending if a label has a direct deal or if we get the music from a distributor) is the same as for our downloads,” says Heiko. “If producers/musicians want to know more about their revenue share they can contact their label/distributor,” he says.
About the ‘locker’
Correction: I incorrectly described the CLOUD product as being a ‘locker.’ That term is meant to be applied to the virtual bin where a fixed number of tracks are available offline without an Internet connection.
Some folks will remember that Beatport bought the major “locker” service for digital music – when it acquired Pulselocker. [link to our friends at DJ TechTools]
On the coming LINK Pro plans, the locker is part of what you pay for at the higher subscription rate. It gives you the ability to access music from your subscription in places you don’t have an internet connection. Now, lots of us DJ with more than 50-100 tracks on a stick – so you can bet a lot of people will still wind up for now using USB sticks.
Will labels and artists benefit?
If it sounds like I’m trying to be a cheerleader for Beatport, I’m really not. If you look at the top charts in genres, a lot of Beatport is, frankly, dreck – even with great editorial teams trying to guide consumers to good stuff. And centralization in general has a poor track record when it comes to underground music.
No, what I am biased toward is products that are real, shipping, and based on serious economics. So much as I’m interested in radical ideas for decentralizing music distribution, I think those services have yet to prove their feasibility.
And I think it’s fair to give Beatport some credit for being a business that’s real, based on actual revenue that’s shared between labels and artists. It may mean little to your speedcore goth neo-Baroque label (BLACK HYPERACID LEIPZIG INDUSTRIES, obviously – please let’s make that). But Beatport really is a cornerstone for a lot of the people making dance music now, on a unique scale.
There are more questions here – like how that heftier subscription fee is divided among labels – and I’ll be looking at that more as we get closer to launch.
But the basic vision for LINK seems to be solid when it comes to revenue, at least as a place to start. Heiko again:
LINK will provide an additional revenue source to the labels and artists. The people who are buying downloads on Beatport are doing so because they want to DJ/perform with them. LINK is not there to replace that.
But I think for the reason I’ve already repeated – that the “serious” and “amateur”/wedding/beginner DJ gulf is real and not just a thing snobs talk about – LINK and WeDJ probably won’t disrupt label business, even that much to the positive. Look ahead to Rekordbox integration and the higher tiers. And yeah, I’m happy to spend the money, because I never get tired of listening to music – really.
And what if you don’t like this? Talk to your label and distributor. And really, you should be doing that anyway. Heiko explains:
Unlike other DSP’s, Beatport LINK has been conceived and developed in close cooperation with the labels and distributors on Beatport. Over the past year, new contracts were signed and all music used for LINK has been licensed by the right holders. However, if labels whose distributors have signed the new contract don’t want their catalog to be available for LINK they can opt out. But again: LINK is meant to provide an additional revenue source to the labels and artists.
Have a good weekend, and let us know if you have questions or comments. I’ll be looking at this for sure, as I think there isn’t enough perspective coming from serious producers who care about the details of technology.
Updated: Heiko provides some additional background on this service.
First, don’t think of it as Beatport moving from downloads to streaming. “It’s really a complimentary service to downloads,” says Heiko.
And he observes that your revenue as an independent label/producer is really their core business: “96% of Beatport’s revenue is paid to independent labels,” says Heiko. “Beatport’s per stream rate is very likely to be higher than other streaming services: we are putting the lion share of the LINK revenue into label payments. Unlike other services the fee will not be shared with music from other more mainstream genres which make up the majority of most streaming service’s payments.”
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