http://www.bbc.co.uk/news/business-38930699
'It's amazing to think that just 10 years ago, flat-rate digital music streaming services were a mere gleam in the eye of industry executives.''It was as recently as September 2007 that Rick Rubin, then co-head of Columbia Records, put forward the idea as a way of combating online music piracy and file-sharing.' '"In this new world, there will be a virtual library that will be accessible from your car, from your cell phone, from your computer, from your television."'But Spotify has not made a profit.
O But Spotify is seen as the leader, with more than 100 million users, 40 million of them paid-up subscribers to its Premium tier.
O major player in 60 countries
O streaming accounted for 51% of music consumption last year.
O It's thought that Spotify currently pays 55% of its revenue to record labels in royalties, with additional money going to music publishers.
I think that it is no surprise that Spotify isn't making a profit given the discounts and the amount it spends on royalties. Another issue that reduces profit is the 'free' version of Spotify Users aren't entitled to pay as long as they endure ads, which i don't think will make as much profit as a payed subscription would.
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