The Money in Music

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The Money in Music

One of companies at the forefront of digital music is Spotify, a fast growing commercial music streaming service from Sweden that has become quite popular in Europe and the US. Last week, Spotify received $250 million in funding from Silicon Valley’s Technology Crossover Ventures to accelerate its growth globally. The funding has pushed Spotify’s valuation to nearly $4 billion. According to sources, Spotify is aiming to introduce its service into new territories, including Japan. The long-term challenge for Spotify is to create a profitable model after paying out royalties. With massive loses in the past years, critics have accused the company of focusing on a drive towards an IPO or trade sale in lieu of creating a long-term sustainable model.

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