Spotify ‘makes more money than iTunes’- in Sweden
- Added:
- Aug 27, 2009
Ad-funded music streaming service Spotify is generating more revenue for the Universal record label in its home country Sweden than iTunes, according to a report.
In an Interview with publication Swedish Wire this month, Per Sundin, head of Universal in Sweden, said: “In five months from the launch, Spotify became our largest digital source of income and so passed by iTunes. It’s a fantastic development, explained by the fact that Spotify really has exploded.”
Rival record label Sony has also seen an uplift in sales due to Spotify, which it says is turning people away from illegal file-sharing.
Speaking to TT news wire, Mark Dennis, head of digital sales at Sony in Sweden, said: “iTunes is going really well, but Spotify is growing rapidly. There are signs that a large number of illegal downloaders are turning to Spotify”.
Launched last year, Spotify offers free streaming access to millions of tracks, and has more than one million members in Sweden and is promptly spreading across the globe. The company has more than six million users across Europe.
The company generates revenue through advertsing on its free service and charging for monthly ad-free subscriptions with premium features.
Record labels such as Sony BMG, Universal Music, Warner Music, EMI and Merlin own a total of 18% of Spotify.
Last month Spotify submitted an application to Apple's iTunes App Store. If approved, iPhone users would be allowed to stream Spotify playlists on their handsets. The investors hope Spotify will attract more paying users if Apple allows the service to be used on iPhone. It is also planning US roll out later in the year.
The firm recently raised $50m in financing at a $250m valuation, selling a stake to Hong Kong billionaire Li Ka-shing.
********************************
Document Actions
|
Digital Training Academy |
|
| Essential skills for today's marketers: boost your team's results with customised advanced digital marketing coaching from world class trainers at the Academy. |
Ask our tutors for more
|
Full details here...
|
|
Digital marketing audits |
|
|
Getting the best ROI from your websites, emails and online ads? Sure? Our digital marketing audits review your current and planned campaigns to find ways of cutting budgets without cutting impacts. |
|
Ask for more |
Full details here...
|
- Mobile ad networks
-
Apple's iAds Vs Google's AdMob- which do you think will be most succesful in the long term?
From the tutors at the Digital Training Academy
 |
Googled- End of the World as We Know It: Ken Aueleta |
 |
The Twitter Book: Tim O'Reilly |
 |
Me++: William J Mitchel |
 |
The Tipping Point: Malcolm Gladwell |
