Posted June 26, 201213 yr http://www.sfgate.com/technology/businessi...-Of-3660812.php Spotify is now the No. 2 revenue source for the major music labels, a source close to the company tells us. Spotify is an on-demand music service. There are free and subscription options. 23 million people used the service last month, according to AppData. The No. 1 revenue source for labels is Apple's iTunes. iTunes paid approximately $3.2 billion to record labels in 2011, Business Insider Intelligence estimates. The gap between Apple and Spotify remains extremely large, our source tells us. "iTunes is way up here," our source said, gesturing up high, "and everyone else is way down here." Spotify: $895 mil revenue projection in 2012. It pays about 65% of revenue as music royalties. $895 mil x 65% = $582 mil Still far far behind Itunes which paid $3.2 billion in 2011. Edited June 26, 201213 yr by Dust2
June 27, 201213 yr Author Looking at its growth, it's no wonder that they are now No. 2 http://spotifyroyalties.blogspot.com/ Spotify Revenue: 2008: $0.612 million USD 2009: $18.1 million USD 2010: $99 million USD 2011: $236.4 million USD 2012: projected at $889 million USD
June 27, 201213 yr The appeal of music streaming remains a mystery to me - I think I'll always prefer actually *owning* a copy of the music I listen to.
June 27, 201213 yr The appeal of music streaming remains a mystery to me - I think I'll always prefer actually *owning* a copy of the music I listen to. You're probably not that different from most other 50+ somethings. For the younger generation, I can see its appeal - a limitless library in which you basically spin your own songs on your own radio stations, with either adverts spliced on the free model or no ads on the sub model. I think its where we'll all end up eventually.
June 27, 201213 yr Author And yet they still insist on usage caps! For the free version? yes. Without it, there will be less reason to pay. If you pay, you can listen to as much music as you want with no ads.
June 27, 201213 yr You're probably not that different from most other 50+ somethings. Hey, I'm only 46! :drama:
June 27, 201213 yr Rounded that's 50! :lol: :lol: :lol: :lol: It's amazing how much Spotify has grown, I remember raving to everyone about it at the start of 2009 and handing out invites! The listening caps piss me off now, but I can see how it encourages you to purchase songs you get addicted to. I guess I should stop being stingy one day and pay for this for a month or so to see what benefits I get.
June 28, 201213 yr I pay a fiver a month for the Unlimited service and it's a complete joy without the adverts. I've never had much of a hang-up on actually owning a physical copy of the songs (I only really buy albums or tracks if they're by acts I seriously love), and the industry gets far more money from me as a result of me subscribing to the Unlimited service than it ever would do otherwise given I used to illegally download everything I wanted, simply because the alternative was just completely unaffordable to me. In time with the development of technology to make the Premium level of Spotify more appealing (whereby you can stream to your phone/iPod etc - so the technological dealbreaker would be Spotify being developed for universal access to any phone or mp3 player with internet facilities, or technology developing at a rate where pretty much every phone is advanced enough to deal with Spotify Premium), I can see Spotify achieving near monopoly (say, within the next twenty years) as economically it makes so much more sense on a micro level. If you like more than a couple of songs each month then £10 to have unlimited convenient access to every song provided by the major labels makes far more sense than paying £9 for an album or the same for 15 or so tracks. For that matter I can see Apple realising this quite quickly and buying up Spotify in the next five years...
June 28, 201213 yr Oh, please don't let Apply buy Spoitfy I am determined to avoid having any contact with an Apple product.
July 4, 201213 yr Author Oh, please don't let Apply buy Spoitfy I am determined to avoid having any contact with an Apple product. It might be more cost effective to build its own Spotify rather than buy Spotify. Spotify current valuation is $4 billion USD. Apple with its own Spotify-like service will get a lot of subscribers just because it is Apple. It will be good for the subscription market if Apple joins in. Edited July 4, 201213 yr by Dust2
August 13, 201212 yr Author 4,000,000+ http://www.billboard.biz/bbbiz/industry/di...007704352.story January, 2010:------------ 250,000 paid subscribers March 17, 2010:----------- 320,000 July 20, 2010: ---------------- 500,000 December 8, 2010: ------ 750,000 March 8, 2011:--------------- 1,000,000 July 14, 2011: -----------------1,600,000 Sept 21, 2011: ---------------- 2,000,000 Nov 23, 2011: ------------------2,500,000 Jan 26, 2012: -------------------3,000,000 July 31, 2012:--------------------4,000,000
August 13, 201212 yr I think I know none in real life who use Spotify, so it's quite unexpected for me :lol:
August 14, 201212 yr Pretty annoying how you can only listen to 10 hours of music a month now... I listen to that amount of music in less than a week easily!
August 15, 201212 yr Pretty annoying how you can only listen to 10 hours of music a month now... I listen to that amount of music in less than a week easily! I thought a paid sub gave you unlimited plays?
August 20, 201212 yr Author I thought a paid sub gave you unlimited plays? That poster was talking about the Free version. http://www.bbc.co.uk/news/entertainment-arts-19270362 Streaming music revenues up 40% globally in 2012 ]On-demand services like Spotify and We7 will generate £696m for the global music industry in 2012 - a rise of 40%, new research has suggested.[/b] It means streaming music is the fastest-growing sector of the industry, overtaking downloads, which are due to see an increase of 8.5% this year. Streaming: 40% increase from last year Download: 8.5% increase from last year On-demand is projected to generate £696m or $1.1 billion USD in 2012. Edited August 20, 201212 yr by Dust2
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