Spotify is even number one in Sweden and Norway (Spotify got its start in Sweden). We’ll go ahead and repeat that: in two countries, Spotify is the number one source of revenue for music labels. Not digital revenue, revenue.
In Finland for example, digital music sales jumped 87.5% last year, and subscription revenues (which would be mostly Spotify) grew by an astounding 1,400%.
One big reason for this is that Spotify has been striking deals with ISPs, which helps not only with distribution but also with monetization, as ISPs already have a billing relationship with users.
A few days ago we relayed a report that record execs think Spotify revenue is “microscopic” and “laughable”. Maybe they do feel that way (digital revenues are always going to be smaller than CD revenues, but these are as good as gone anyway) or maybe they were misinformed — or maybe they were just firing shots in negotiations.
Spotify is huge and growing in Europe and is backed by Napster co-founder Sean Parker, but is having a trouble launching in the US because of licensing disagreements.