The fact that Spotify exists at all is something of a minor miracle: unknown Swedish company convinces major record labels to upload millions upon millions of songs for people to listen to without buying them. It must have been quite the pitch.
Sure, the labels get royalties but it's pennies - fractions of pennies - on what they used to get from "traditional" online sales.
Regardless, it's been clear for a long time that streaming is the music industry's future.
On Wednesday, Spotify announced it would go public - but that's not to say it is here to stay. The company has long been surrounded by threats, and it's no different today.
Apple, Amazon and Google are also in the streaming game and - unlike Spotify - all sell devices on which consumers can listen to music.
And while Spotify has signed deals with all the "big three" record labels - Warner, Universal and Sony - it is the music executives that still hold the bargaining chips.
Even if Spotify has been able to negotiate a lower per-listen payment, the combined cost of paying out royalties only ever follows one trajectory: up.
Sure, the labels get royalties but it's pennies - fractions of pennies - on what they used to get from "traditional" online sales.
Regardless, it's been clear for a long time that streaming is the music industry's future.
On Wednesday, Spotify announced it would go public - but that's not to say it is here to stay. The company has long been surrounded by threats, and it's no different today.
Apple, Amazon and Google are also in the streaming game and - unlike Spotify - all sell devices on which consumers can listen to music.
And while Spotify has signed deals with all the "big three" record labels - Warner, Universal and Sony - it is the music executives that still hold the bargaining chips.
Even if Spotify has been able to negotiate a lower per-listen payment, the combined cost of paying out royalties only ever follows one trajectory: up.



















