Spotify Now Making Universal More Money Than iTunes, In Sweden

2 Comments

Unlikely as it may seem, since other ad-supported music sites are finding things challenging lately, Spotify may actually be bringing record labels a big pay day – well, at least in its native Sweden.

2 Comments

Mags

Fredrik is absolutely right. All this means is that Spotify is doing a lot of streams. Well, I think we knew that… The labels are not on deals where all they get is a share of the ad revenue. Sure, if that's big enough, they'll get that too, but the deals are fundamentally pay per play deals. Irrespective of the number of ads Spotify sells, the labels get paid for every stream. And as Spotify is a great (consumer) product, they get paid for a lot of streams.

Fredrik

This really only gives a hint about Spotify's outbound cash-flow – not the inbound. Pretty far from "validating Spotify's business model"…

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