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| Spotify defends fee structure for streaming services |
| Wednesday, 16 November 2011 00:00 |
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Streaming media provider Spotify has defended its fee structure in the face of criticism that featured acts are not receiving a sufficiently large share of profits.
The online music service told paidContent that while it is not able to give details of how its financial arrangements work, it has still been responsible for generating significant profits for the music industry. In recent months, independent labels such as Projekt Records, Prosthetic Records, Century Media and Metal Blade Records have all pulled support from Spotify due to a lack of transparency over its fee structure, as well as the low revenue it provides for musicians. The service's financial structure has been compared to the models offered by the likes of iTunes, but Spotify states that these comparisons are skewed by the fact it pays revenues to rightsholders, rather than individual acts. "We have driven over $150 million (£95 million) of revenue to the music industry since our launch three years ago," the company added. In recent months, Spotify has expanded its reach by offering services for BlackBerry and Windows Phone 7 devices, as well as agreeing a partnership with Virgin Media. Posted by Kevin Smith  |