Spotify has abandoned plans to launch in Russia with its office in the country due to close later this month. Russian news agency TASS reports that the head of the streaming service in the country, Alexander Kubaneishvili, wrote a memo saying: "I regret to say that Spotify has refused to start business in Russia in the nearest future. There are several reasons for that: the economic recession, the political situation, new laws controlling the internet" adding "My last official working day is 12 Feb. Speaking for myself, I can only confirm the fact that indeed, there will be no start-up in the nearest future".
But 2014 was a big year for streaming - and 2015 will be bigger. The Music Industry Blog says this: Apple entering the fray is the catalyst. Apple enters a market when it is ready for primetime. Apple lets the pioneers establish the market, prove the model and create consumer mindshare before it comes in and most often assumes a leadership role. Apple is certainly leaving it later than normal with subscriptions but it is still the same classic follower model, and the marketplace knows it. Hence Jay-Z’s reported €50 million interest in Norwegian streaming service WiMP and Spotify’s reported pursuit of a further $500 million. The first move is ‘let’s get in a market Apple is about to make huge’ and the second is an Apple war chest"
Taylor Swift has refused to allow any material from her new album, '1989' on streaming services - the album sold 1.287 million copies in the US in its first week debuting at No 1 in the Billboard 200 albums chart - and Swift is now pulling her entire catalogue down from Spotify and others streaming platforms. Swift and her label Big Machine have always been particularly vocal about their fear that a presence on the big streaming platforms will damage first week download sales. Her last album, 'Red', was kept away for seven months. Spotify had already noted the absence of the new record from its catalogue, with its official Twitter account retweeting a message to the musician pleading with her not to hold out too long. Deezer have also now removed Swift's catalogue from it's service.
More here http://www.theguardian.com/theguardian/2014/nov/08/taylor-swift-decision-pull-music-spotify-shot-arm-feminism
After the latest fund raining venture netting US $250 million, the Wall Street journal says Spotify is now valued at $4 billion. US-based Technology Crossover Ventures have led on the latest funding round. Spotify's publicly listed rival Pandora, has a market cap, according to the WSJ, of $5.7 billion. Pandora is bigger than Spotify in terms of customers (over 70 million active users, versus Spotify's 24 million), though its younger rival is operating in many more countries, and actually brought in more revenue last year. Both companies have seen losses widen in 2013. And in related news, one of the founders of Deezer has told news agency AFP that the company will finally arrive in the US market next year.
