Spotify could be Sold for $14 Billion

Just last week, news broke on the potential purchase of revolutionary music streaming service, Spotify. The company which brought free music streaming to the masses in 2006 via Swedish duo Daniel Ek and Martin Lorentzon is said to be in the advanced stages of selling the company that will exceed $14 billion as reported by Digital Music News. Since its inception, the streaming service has over 10 million paying subscribers to a service that was first launched as a free platform for all. As the business has evolved over the last 9 years, so has its reach. Spotify now streams music from nearly all of the music industry’s biggest stars including artists from EMI, Warner and Sony. However, it hasn’t all been plane sailing for Spotify as it has come under increasing criticism for the lack of monetary payouts it gives to the artists that stream their music on the service. This even applies to many of the global stars that only receive a small amount compared to what they would from a record sale. Although these constant criticisms hasn’t stopped the undisclosed bidder from potentially purchasing Spotify. The news of said purchaser will be released via the Wall Street Journal on Wednesday April 1, however the news will only be able to be viewed by paying subscribers of Spotify.

One of the more interesting variables of the aforementioned deal is that half of the proposed money will be paid directly into a “musician’s fund” that will be hugely beneficial to artists past and present. Record labels will also profit hugely from this transaction if it does go through, as they will be eligible for royalties – something in which they have only previously received a tiny amount. A significant reason why the quoted figure is so large is partly down to the fact that Spotify has gone mobile. With many companies now seeing mobile as the future, Spotify has excelled in the mobile market. A market that Gaming Realms PLC, creators of the innovative Spin Genie portal, stated that they to continue to grow in strength. They expect mobile Internet penetration to surpass the 17% where it currently stands globally, by as early as next year. In the United States alone, that figure currently stands at 58% according to PEW Internet, so you can see how important it is for companies to have such a powerful presence nowadays. While their mobile capabilities are help driving this potential sale, so will the news of well overdue payouts to the people that make Spotify what it is: the artists. And hopefully this will mark a new era in rewarding the artists and giving them a more profitable platform to offer their music to millions of people globally.

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