- $0.00450 per stream ($3,376 for 750,000 total streams)
- $0.00579 per stream ($0.65412 for 113 total streams - August/Sept 2011)
- $0.00870 per stream ($0.3219 for 37 total streams - Sept 2011)
- $0.00726 per stream ($2.5549 for 352 total streams - July 2011)
- $0.00535 per stream ($4,277.39 for 798,783 total streams - July to Dec 2011)
Other useful information about Spotify:
Spotify paid subscribers:
January, 2010:------------ 250,000 paid subscribers
March 17, 2010:----------- 320,000
July 20, 2010: ---------------- 500,000
December 8, 2010: ------ 750,000
March 8, 2011:--------------- 1,000,000
July 14, 2011: -----------------1,600,000
Sept 21, 2011: ---------------- 2,000,000
Nov 23, 2011: ------------------2,500,000
Jan 26, 2012: -------------------3,000,000 paid subscribers
Spotify Revenue:
2008: $0.612 million USD
2009: $18.1 million USD
2010: $99 million USD
2011: $236.4 million USD
2012: projected at $889 million USD
Spotify Valuation:
February 2011: $1 billion valuation
May 2012: $4 billion valuation
A "guess" on Spotify Payment:
- Spotify pays the rights holder a % of revenue each month depending on their streaming number.
- Each month, the payment is recalculated based upon the total revenue.
- A stream from a paid Spotify subscriber will earn the rights holder more money than a stream from a free Spotify user.
Spotifys pays 65-70% of revenue in content costs (per Billboard.biz)
iTunes pays out 70% of revenue to rights holders. Spotify pays out 65% to 70% of revenue in content costs, chief content officer Ken Parks said during a SXSW conversation with Billboard editorial director Bill Werde.
Spotify 2008, 2009 and 2010 Income Statement
Spotify 2009 simplified Income Statement:
Total Revenue: $18.1 million USD
Total Expense: $45.7 million USD
Net Loss: $27.6 million USD
Spotify 2010 simplified Income Statement:
Total Revenue: $99 million USD
Total Expense: $141 million USD
Net Loss: $42 million USD
Spotify 2011 simplified Income Statement:
Total Revenue: $236.4 million USD
Total Expense: $295.8 million USD
Net Loss: $59.4 million USD
How many Spotify streams = 1 Itunes download?
And Martin Mills, the chairman of Beggars Group, commented about streaming services: “Every play is a pay – and 200 plays will earn you more than a sale.”Assume $0.0055 payment per stream.
$1.29 Itunes download x 70% = 164 Spotify streams x $0.0055
$0.99 Itunes download x 70% = 126 Spotify streams x $0.0055
Markets in which subscription music has overtaken legal downloads:
Sweden:
Subscription has caught on exceptionally well in some markets, particularly in
Scandinavia. In Sweden, for example, subscription accounted for 84 per cent of
digital revenues in the first ten months of 2011, boosted by its national champion
Spotify. Other markets saw sharp growth in subscription revenues, such as France
with growth of more than 90 per cent in the first 11 months of 2011
Spain:
The country's music industry umbrella group Promusicae said last month in a report that digital music sales soared 20 percent in 2011 to more than 46 million euros, while the total market share grew to 31 percent. Streaming experienced a 75 percent jump to 16 million euros and now accounts for 35 percent of the digital market, more than any other, including downloads.
It might surpass legal downloads in France within 18 months at the current growth rate:
France's digital music industry grew by 25 percent to EUR 110 million in 2011, according to copyright holders' association SNEP. Downloads accounted for EUR 56 million of revenue, with subscription and streaming services accounting for most of the remainder. Download revenues grew by 18.4 percent compared to 2010. Streaming and subscriptions grew by 73 percent to EUR 39 million. Subscriptions services such as those from Spotify and Deezer grew by 89 percent to EUR 26 million.
downloads: 56 million EUR (growing at 18.4%)
subscription: 26 million EUR (growing at 89%)
My other projects:
Authors who have sold more than 50,000 self-published ebooks
http://selfpublishingsuccessstories.blogspot.com/
Top 100 Ebooks Ranking (by genre) - Rated by Readers
http://ebooktop100.blogspot.com/
