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The only way for the music industry to fight back is to ensure diversity in streaming platform, and fighting for easy way for users to port their data between them. This for one will both benefit users and the industry.
There’s another way, which HN’ers won’t like and that’s to borrow a page from the video streaming playbook and have the labels start their own individual services.

Which of course will also eventually push Muzak on the bgm playlist/channels

Oh god please no. I'm already needing like seven video subscription services on a rotating basis to see the various nice things people talk about, music is such a good counterexample of where it just works to aggregate everything on several platforms and people can choose which service works best
Of all the options, how did you decide on the most user hostile one?
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Sure, if they agree on a common interface (API) and open it to everyone. This way they would turn streaming services into commodity.

I don't see that happening though.