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06-27-2012, 07:29 AM #1
Spotify Continues to Lag Behind iTunes as Source of Record Label Revenue
According to Business Insider, Spotify, the on-demand free and subscription-based music streamer is reportedly the second largest source of revenue for the world’s major record labels, lagging behind Apple’s iTunes.
Although Spotify is taking the number two spot in the market, it continues to lag far behind Apple’s market-dominating iTunes. Apple paid out an estimated $3.2 billion to music publishers in 2011, which is in line with the numbers given out during the company’s quarterly conference calls. The Cupertino California company was even rumored to be in talks to buy Spotify at one point, but the speculation didn’t come to fruition.
Spotify became a popular music service in Europe after being found in 2006, crossing the ocean to launch in the U.S. in July 2011. At the time of its U.S. launch, the company had a catalog of 15 million songs but the number grew to 18 million and continues to grow by 10,000 to 20,000 tracks per day. According to recent estimates from analytics firm AppData, 23 million people used Spotify last month. Furthermore, CEO Daniel Ek mentioned there are over 10 million users in the U.S. alone over 3 million of whom are paying subscribers.
Spotify Director, Napster co-founder, and former Facebook president, Sean Parker, alleged that Apple attempted to keep the service out of the U.S. as it directly competes with iTunes, at the D10 conference in May. At SXSW, Parker said the following: "If we [Spotify] continue growing at our current rate in terms of subscriptions and downloads, we’ll overtake iTunes in terms of contributions to the recorded music business in under two years.”
We’ll have to wait and see if Parkers predictions come true but as of right now, although Spotify does seem to be doing well, it has a long way to go to even come close to the success of iTunes.
Source: Business Insider
06-27-2012, 07:56 AM #2
That's pretty good for Spotify as it's fairly young. I wonder where Pandora ranks?
06-27-2012, 08:07 AM #3
Good. I love competition.
06-27-2012, 08:49 AM #4
Wow..that is significant growth in such a short period of time. Apple is always looking to make iTunes better. Maybe at their current model Spotify is gaining ground but Apple may go in a different direction, in order to appeal to more users..you never know. Time will certainly tell.
06-27-2012, 10:32 AM #5
once apple starts using radio service on itunes there wont be much competition.. unless apple tries to social network it again.
06-27-2012, 12:35 PM #6
If apple does try to go with a radio service or subscriptions they should have just bought spotify. Apple never intended on taking over the world music distribution, it just happened do to their hardware. As far as Pandora, well its a joke. If you have ever tried to get your own music on Pandora well you would know this. Spotify is growing at its rate for easy of use, Pandora just never understood that.
06-28-2012, 02:45 AM #7
I love Spotify. I haven't use pandora since I discovered Spotify. I share my account with my wife. You can only use spotify at one device but I have tons of playlist saved for offline mode. As long as playlist are saved for offline mode you can play on different devices at the same time. Whenever she is not on I use the radio app or search for new songs to add to my playlist for offline use.
08-10-2012, 03:51 AM #8
record my playlists and then i can just use them wherever. there's this soft called audials tunebite that does that kind of things and I totally recommend it as an alternative. if you check out the link, there's a step by step description with screenshots and everything you can have a look at.