Record label Warner Music, which represents the Grateful Dead and Jason Mraz, is no longer negotiating with free music streaming services, according to BBC.
“Free streaming services are clearly not net positive for the industry,” Warner chief executive Edgar Bronfman Jr. said to the British network. “And as far as Warner Music is concerned will not be licensed.”
Instead of partnering with companies like Spotify and Last.fm, which give users free access to songs, Warner will only work with organisations who require payments for tunes.
The BBC reports that legal free streaming services currently have “deals with most major and independent record labels and pay royalties for each song played,” with revenue from advertisements.
But these royalties pale in comparison to the profit the labels would be making if every user paid a subscription or flat fee for a song.
Though Warner’s announcement is bad news for everyone currently downloading free songs, things are looking great for iTunes.
NOW WATCH: Briefing videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.