200+ labels pull content from streaming services

Wired is reporting that, in the wake of a study from The NPD Group and the National Association of Recording Merchandisers (NARM) which concludes that "that streaming music is damaging to record sales," STHoldings, a distributor representing over 200 record labels, has withdrawn nearly its entire catalog from music streaming services Spotify, Napster, Simfy, and Rdio. Following the study, the distributor inquired of its labels whether or not they wanted to continue streaming their content, with a mere 4 out of 238 labels opting in.

A statement from STHoldings reads:

As a distributor we have to do what is best for our labels. The majority of which do not want their music on such services because of the poor revenues and the detrimental affect on sales. Add to that the feeling that their music loses its specialness by its exploitation as a low value/free commodity. Quoting one of our labels, 'Let's keep the music special, fuck Spotify.'

This follows several other labels criticizing and pulling their content from the much-hyped music streaming service Spotify, notably Century Media, Sumerian Media, and Prosthetic Records.

You can read the full article, including Spotify's response to STHoldings' withdrawal, here.