Tracks from over 200 record labels will be removed from Spotify, Napster, Simfy, and Rdio. Labels distributed by STHoldings include Hessle Audio, Skull Disco and Mordant Music. Out of 238 labels distributed by STHoldings (which specialises in techno, grime, dubstep, and bass music), only four said they did not want their content removed from the streaming services.
STHoldings said in a statement: "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.""
STHoldings said decision was prompted by a study conducted by NPD Group and NARM (reported by Digital Music News here) which claimed that Spotify and similar streaming services were detrimental to music sales.
Update: MusicAlly reports a response from Spotify, quoting a spokesperson as saying: “Along with NARM, we’re confused by the way this research has been interpreted, since Spotify was not referenced anywhere in the research questionnaire and had only been live in the US for a matter of days when the study was carried out. The deck also makes absolutely no reference to Spotify and certainly does not draw any conclusions about Spotify, such as those made in the article.”
EDIT: Hyperdub is not implicated in the decision made by STHoldings. While Hyperdub is listed as being distributed by STHoldings, the company does not manage digital distribution for the label, Cargo handles the main body of digital and physical distribution for Hyperdub.