Who Benefits from Spotify & Co.?

The recently published Ernst & Young study that was commissioned by the French music industry body SNEP highlights the revenue split of a premium subscription of EUR 9.99 Spotify, Deezer and other comparable music streaming services. The study’s results confirm the conclusions drawn in the blog series “Is Streaming the Next Big Thing?” that – beside the music consumers – the (major) record labels are the main beneficiaries of the current boom of music streaming. In contrast, the musicians get just a small piece of the streaming pie and the streaming services for their part have severe problems to establish a sustainable business model. In the following, I would like to highlight and to comment on the main results of the study.

Advertisement