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March 24, 2012 01:12 am GMT
There's a fundamental problem with startups that depends on premium licensed content. If you succeed, the content owners will jack up their licensing fees. This is why Business Insider's rumor that Spotify is raising a big round of funding makes sense.In the seven months since Spotify launched in the U.S. it's made huge strides, signing up over 3 million paying subscribers, and hitting 17.4 million monthly and 5.3 million daily users. Even though the record labels own a stake of the company, Spotify's success make it a lucrative target for extortion.
Original Link: http://feedproxy.google.com/~r/Techcrunch/~3/UQy6RWyPHDY/
Spotify Needs Big Funding To Pay Big Contents Tax On Success
There's a fundamental problem with startups that depends on premium licensed content. If you succeed, the content owners will jack up their licensing fees. This is why Business Insider's rumor that Spotify is raising a big round of funding makes sense.In the seven months since Spotify launched in the U.S. it's made huge strides, signing up over 3 million paying subscribers, and hitting 17.4 million monthly and 5.3 million daily users. Even though the record labels own a stake of the company, Spotify's success make it a lucrative target for extortion.Original Link: http://feedproxy.google.com/~r/Techcrunch/~3/UQy6RWyPHDY/
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