Lately, I’ve been rediscovering musical genres on Spotify and I have been thoroughly impressed with how this company’s business model provides seemingly unlimited music for a simple price of $9.99 a month all legally. As a result of this fascination, I provide you with this week’s edition of Trivia Tuesday:
Three Facts about Spotify
Fact #1: Spotify is the #2 source of revenue for major music labels
Since launching, Spotify has reportedly given back roughly $500 million to rights holders. This figure mainly is calculated with royalties paid out by number of plays. Spotify pays these out using advertisements on its free service as well as about 5 million users that pay $120 a year to subscribe which ends up bringing $600,000,000 a year in revenue for the company.
Spotify’s User Interface
Fact #2: Spotify is available in 15 different countries.
These countries are the USA, the UK, Australia, New Zealand, Germany, Sweden, Finland, Norway, Denmark, France, Spain, Austria, Belgium, Switzerland and The Netherlands. In this regard, Spotify is still young and still expanding into different markets. Furthermore, Spotify was developed in Stockholm in 2006 and did not come to the United States until 2011. (Except for our CEO sneaking in the service already in 2007 by logging in to his brother’s account every now and then)
Fact #3: Spotify is valued at $3 Billion (but they think $4B)
Spotify closed a $100 Million round of financing, at a $3 Billion valuation, in November last year after setting the goal of raising $220 million, at a $4Billion valuation in May 2012. Many prominent companies have invested in the company with hopes of high returns (Goldman Sachs for example). This is a serious company that presents serious potential and can potentially change the music industry as we know it.
What does the future of this company hold for you? Join the discussion here
I hope this weeks Trivia Tuesday was informative for you. Check out last week’s Trivia Tuesday on Sony if you enjoyed this. Until next week, Sprinkle on!
