The battle of the streaming services has been the topic of discussion for months now. With the relaunch of Jay Z’s Tidal and other fixtures in the business like Pandora, the popularity of streaming has carved a big dent in how music is sold. Spotify, of course, is leading the pack according to recent RIAA findings. After securing new funding totaling $400 million, Spotify is now worth more than the entire US recorded music industry. At a net value of $8.4 billion, Spotify has amazingly surpassed the recorded music industry (whose revenue total stands at $6.97 billion). According to the Wall Street Journal, Spotify is worth more than all of the US retail music revenue sources combined. Of course, the data is actually comparing two different things, in that one isvalue (Spotify’s 8.4 billion) and the other is revenue (RIAA’s $6.97 billion). The thing is, valuation is determined by an estimate of future profits, but Spotify has never actually turned a profit. Essentially, the report is suggesting that with the way things are trending, the US music industry’s valuation could eventually equal its revenue, with Spotify being more valuable overall. (via Consequence of Sound) Source: Spotify valuation ($8.4 billion) calculated by Wall Street Journal, based on an upcoming, $400 million+ capital round led by Goldman Sachs. US-based recording valuation for 2014 ($6.972 billion) published this month by recording trade group RIAA. One Response
