FROM RHEINGOLD PUBLISHING:

The classical record label Naxos has decided to close their online streaming service Classics Online, reports Rheingold. Naxos owner Klaus Heyman cites hefty competition from major players like Apple and Spotify as the reason for the closure. Heyman said Naxos lacked support from the major labels and independents were reluctant to buy into the service. Therefore the company limited streaming to brands associated with Naxos such as Marco Polo and Ondine which did not create sufficient traffic. Heyman told Rheingold he doesn’t feel bad about shutting down the service because as he puts it “nobody offering streaming is making money from it.”Heyman predicts that the major streaming services will dominate the classical market in five years unless niche genres can come up with a new business model.