The label has issued a statement detailing their reasons for the decision and have said they believe Spotify in its present shape and form isn’t the way forward” and that the service is part of a “downward spiral which will completely kill a lot of smaller bands that are already struggling to make ends meet.”
The label said in a statement which reads as follows:
While everyone at the label group believes in the ever changing possibilities of new technology and new ways of bringing music to the fans, Century Media is also of the opinion that Spotify in its present shape and form isn’t the way forward. The income streams to the artists are affected massively and therefore that accelerates the downward spiral, which eventually will lead to artists not being able to record music the way it should be recorded.
Ultimately, in some cases, it will completely kill a lot of smaller bands that are already struggling to make ends meet. Physical sales are dropping drastically in all countries where Spotify is active. Artists are depending on their income from selling music and it is our job to support them to do so. Since the artists need to sell their music to continue their creativity, Spotify is a problem for them. This is about survival, nothing less and it is time that fans and consumers realize that for artists it is essential to sell music to keep their heads above water.
The move from the label comes despite the streaming service’s recent launch in North America and recent valuation at over $1 billion. Spotify have not commented on the decision.