Spotify now has a 49% share of the paid-for music streaming market, according to new MBW research – just as Apple and YouTube ready new services to tackle its dominance. The Swedish streaming platform released its full-year financial results last week, posting a €162m net loss despite revenues of €1.08bn in revenues, of which €982.9m ($1.11bn) came from subscriptions and €98.9m ($113m) was derived from free users.
In terms of ad-funded or ‘freemium’ streaming users – including YouTube and Vevo, as well as Spotify’s free tier – the IFPI concluded that these equated to $641m in 2014. Spotify’s own ad-funded revenue in 2014 stood at €98.9m – $113m ($111m) - giving it just a 12% share.
And with the debate abouts subscription vs freemium streaming services a hot topic, Rdio has launched what some aer calling a 'medium' streaming service - a $3.99 package called Rdio Select. Rdio boss Anthony Bay, speaking to Buzzfeed, said: "We've all been flying airplanes that had business class only. There is no coach".