Spotify claims to secure ten percent of US label revenue
For every punch thrown at Spotify amid growing competition and concern surrounding the streaming market, the Swedish streaming giant continues to fight back. Off the heels of accelerated losses for the company and recent speculation as to the threat Apple’s competing service will play, Spotify appears to have accounted for ten percent of US label revenue in the first quarter.
Speaking at the Nashvile Music Biz conference, the company’s director of economics, Will Page, claimed that one out of every ten dollars record labels made in the first quarter came from the service. Page further noted that Spotify has now launched in 32 of the 37 countries where digital revenue is predominantly driven through streaming, and that the streaming platform now accounts for half of the $1.5 billion global subscription streaming market.
Part of Page’s address was directed at skeptics of the platform, noting the consequent dip in piracy in the wake of the service, which Page asserted showed that Spotify was in fact doing its job in securing a future for the subscription model and its vital place in the digital market right now.
The news is sure to reassure cynics and label professionals alike, but is ultimately a small piece in the puzzle for Spotify and the challenging year ahead for them in both securing industry support and keeping ahead of the emerging competition.
Via: Billboard Biz