Spotify, Facebook and many other online services need to monetize. They need to be profitable. However, for this to be possible Spotify has the handicap of traumatic agreements with record labels, they still do not give budge and refuse to lose control of the music industry. A counter, of course.
In this situation it seems that Spotify is in the middle of negotiations with the major record labels to try to convince them to reduce the high fees that they require by copyright of each song that plays through the service will provide positive results in the medium and long term.
This would help Spotify launch its another plan: to offer its free service on mobile devices, which so far is payment. Currently the streaming music service has more than 5 million paying users (nearly 25% of total) and its catalog consists of over 20 million songs (add between 10,000 and 20,000 each day). However, despite all this, the high payments that have to be made for each song that plays prevent Spotify is profitable and can grow.
If I could reduce those payments to record labels, Spotify would have more resources to improve service and expand it internationally. And might even pay more to artists. And is that the service last year recorded a loss of $ 59 million after revenues of about 250 million. For the current year are estimated around 500 million revenue and 40 losses. These are reduced, but very slowly. Of course, this situation is not sustainable forever ..
