In November 2011, EDM distributor STHoldings pulled their music from Spotify because of “the poor revenues and the detrimental affect on sales”. Wired reported on this and wondered aloud if Spotify’s fortunes were “unravelling”.
In July of this year, STHoldings went into voluntary liquidation.
This was not a new operation. They’ve been around since 1998 and successfully served a niche music audience well. Amidst all the e-ink spilled on the subject of whether artists should be on Spotify, this certainly stands as a potential example of what happens if you’re not. It also shows that Spotify is not the problem, as STHoldings would still be around. That’s why I’ve personally found Spotify to be the solution.