?How to Make Money with Online Music. Now that the online music streaming service Spotify has raised another chunk of cash to expand in the U.S., the question of how that money is becoming more urgent than before. In the face of it, has some insurmountable problems: Unable to sell advertising much, because that would ruin the service, and if it does not sell much advertising the need to upgrade to a monthly premium paid for the option to avoid advertising not going to be very attractive.

One of the things you are doing is making its premium mobile applications only, that is intelligent, but limited. And people are talking about being a competitor to iTunes, which is also intelligent, but also limited. If you can play the song on your computer for free whenever you want, why pay for a copy?

But there are whole swaths of the intelligent things you can do, although only the permit holders. The option of having a playlist on a CD and convert it instantly – instant CDs or fifty, or five thousand – would open a whole new market for social exchange of music. Any social gathering where music is a feature – weddings, birthdays and anniversary celebrations – it becomes a market for this type of micro-label; instant memories, ways to share the celebrations with the people who can not, and pure comfort , they use the way that CDs are universally playable and very durable. You just can not do that with MP3.

Then there are retail outlets, promotional events, and any number of “Now That’s What I Call electro-tribal Industrial Gothic # 45″ compilations that individuals or small businesses might want to create and sell, just because there is a market they understand better than anyone else. All of the above would benefit from an on-demand publishing service music compilation.

Of course, immediately alters the rights holders, which are still deathly afraid of anyone smarter than to get a balance. In a sane world, they would be offering service above themselves – imagine going to the RIAA website, creating a playlist of 1950s big band music with Aunt Ethel and receive your CD birthday in the post, well packaged and produced, two days later. All the problems in doing this are related to rights and rights holders are in an excellent position to solve these problems.

They will not do – and to be honest, I prefer that he did not – but should leave the form of companies like Spotify or last.fm – anyone who has a demonstrable love of music and understands consumers – that can create entirely new markets. And do new things, not trying to emulate the former, is the only way for the industry as a whole will grow for the benefit of all.

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