spotify plans, page-8

Thanks Wombat....
A really interesting article.

Spotify has become a very popular service with consumers, but its business remains challenged. The reason: extremely thin margins. Spotify does not own the music its customers listen to. Music labels do, and Spotify has to pay the labels every time a customer listens to one of their songs. As Spotify gets more popular, the labels charge more and more.
The original plan for Spotify was that it would grow so popular with music listeners that Spotify would be able to dictate negotiations with the labels.
This hasn’t happened. This is in part because there are several Spotify competitors all bidding for the same rights to the same music. Even though it has become a significant source of revenue for the labels, Spotify still depends on the labels more than they depend on it.

Read the rest....it's well worth it.

Just goes to show....it's all about the content!