Spotify's massive $1.6 billion lawsuit reveals how it must adapt if it wants to survive

Spotify's rapid ascendance has a price: A $1.6 billion lawsuit for failing to pay some artists for their songs.

The music publisher Wixen, which represents artists like Neil Young, the Black Keys' Dan Auerbach, and Tom Petty, has sued Spotify to the tune of $150,000 per song. Wixen says Spotify failed to get the necessary licenses to play over ten thousand songs.

The lawsuit underscores that while Spotify has grown quickly, it still faces issues with how it compensates artists and songwriters due to complex questions around music rights. Spotify will need to adapt to address that issue ahead of its debut as a public company — and as it looks to turn a profit for the first time. Read more...