Spotify Paid Out $61 Million To Labels In 2010
Updated. In 2010, Spotify grew from 250,000 paying users in March to 750,000 at the end of the year. During that time, the company paid out just over $61 million to rights holders and labels.
Spotify has signed one deal with Sony Music.
To come to the US, they will need another large label such as Universal Music.
Otherwise, the catalog holes will be too great. Even if the company is able to sign more deals, a Q1 launch isn't likely, as they'll need time to prep marketing plans.
Stay tuned.
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Thank you to the crew at ballade for this news tip.
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345 million Norwegian Kroner (43 million Euro) (59 million US$)
Yeah, pretty egregious and now obvious omission of what currency your “345 million” headline refers to
Not trying to mislead. I misunderstood what currency the site referred to. It is, after all, Norwegian text.
This is what I don’t understand…and the reason I believe that Spotify will be effective but won’t “takeover” as some people believe. I believe that MANY people will think that instead of paying $10 a month indefinitely they can just pay a one time payment of $150-$200 for an mp3 player and download most of the music they like for free. Therefore Spotify would never be able to profit even with a big # of registered users. You cannot compare renting music to renting movies. Netflix works because the reality is that we don’t see movies as often as we listen to music…how many times have you watched a movie once or twice in your life and never see it again? Music that we love, on the other hand, gets listened to daily.
Statistics seem to show that people who has immediate access to streamed songs don’t download them ilegally
at least they’re paying out something! 🙂
In another forum I’m following a discussion among musicians who say that Spotify’s payments to artists are not significantly greater than the amounts artists receive from illegal downloading. Not even enough to buy a can of soda.
I wonder if the amount paid out to labels is a function of the size of the potential market or if it is just a flat fee.