News

Who’s Making Money From Music Streaming? Because Spotify Isn’t, Musicians Aren’t

Spotify isn’t making much money from streaming music, at all.

The company has revealed that it scooped in around $1.03 billion in 2013, which was up 74% or so from 2013. But, it doshed out most of that to record companies and publishers, which had the company report an $80 million loss for the year, representing close to 70% of its total revenue for the year.

We also now know that most people enjoy the free services that Spotify offers, and not the premium services. Out of the 36 million users on Spotify, just 8 million of them were paying for the premium service. This is less than 25% of the total user base, something I’m sure Spotify hopes to turn around. The company said that 91% of its sales ($897 million) come from subscriptions with another $90 million made from ads. If 70% of their revenues are being handed out to record labels and and publishers, just how much is Spotify handing over to artists?

Maybe this is why Taylor Swift broke up with Spotify? Now we just have to wait for her break up song.

Source: Engadget.

Henry Reeve

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