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Spotify is out of contract with all three major music companies, and according to Music Business Worldwide, the renegotiations aren’t going well. Citing sources familiar with the talks, the outlet says the sticking point is revenue share.

With Spotify preparing for an IPO, the labels see this as a great opportunity to get the streaming company to raise its revenue split from around 55% to 58%, which is what Apple Music pays. Spotify, however, wants to lower the amount.

How far down Spotify want to push this rev share is a matter of debate: one label source told us today that Spotify has asked to go below 50%, but a senior Spotify source flatly told us this is untrue.

(Apple is also believed to pay publishers 13.5%-15% of revenue depending on the territory – slightly higher than Spotify.) Regardless, the idea of Spotify paying labels – and artists – a lower portion of its income is bound to be highly contentious.

Essentially, Spotify needs the labels to cut it some slack if it’s going to be able to compete with tech heavyweights like Apple. It posted a $194 million loss last year, and wants to ramp up spending in 2016 for things like exclusive artist deals.

Source: Music Business Worldwide

  • askep3

    Idk of Spotify is going to be able to do exclusives, considering how much they cost, and how just a couple of artists isn’t enoug, they need to consistently have exclusives, as Apple has had.

  • Sharkey311

    Hopefully this is the end for Spotify. Their business model is awful and was doomed from the start.

    • Fede777

      And you’ll have no free alternative.

      • Sharkey311

        I don’t need a free alternative. I pay for Apple Music and it does the job.

      • Riken Dangol

        groovemp3 is free alternative.

    • Lit

      Spotify is the best in music streaming, why would you want it to end?

      • Sharkey311

        That is completely your opinion. In my opinion it is awful.

      • Lit

        My opinion? You can even go on MR and most people would agree. You probably haven’t even tried Spotify premium.

      • Sharkey311

        Yeah. It’s your opinion, smarts. It’s not fact. No matter how many other people on macrumors say Spotify is the best. It’s their opinion too. And I had Spotify premium for over 2 years. I didn’t like it at all but it was only 5 bucks. Once Apple Music came out I jumped ship ASAP and never looked back.

      • Lit

        Tell me why you why Spotify is “awful” then? I’d love to hear it.

      • Sharkey311

        I hate the UI and a lot of the music I want to have in my collection isn’t available on Spotify. Pretty damn simple. Do you like work for Spotify or something? Why are you so defensive to this dying music service?

      • Lit

        Not defensive, I just love seeing people who cannot accept anything outside Apple’s world. I don’t even believe you had the service. UI works just fine. And you said it was awful but had it for 2 years? Come on, how stupid can you be.

      • Sharkey311

        How about having a google music subscription as accepting anything outside apples world? I used Spotify at work as a necessary evil. Now I use google music for work. You’re a moron who has no idea what he is talking about. Spotify sucks. Get over it and go back to watching your anime.

      • techfreak23

        You’re right, it is an opinion and comment sections are great to share those opinions. If Apple Music had something like Spotify Connect, being able to control music playback from any device and switch seamlessly between playback devices, I’d consider switching back to Apple Music. Also, if it had a better UI. That being said, I have never seen a worse UI than that of Deezer. FLAC is nice and sounds great on a great sound system, but Deezer presents it all in the worst way I have ever seen. Tidal has a great UI, but the queue system is horrible.

      • Ammar Mudhaffar

        IMO they both have their pros and cons, I’ve tried them both but Spotify suits me best, Apple music in my country does not have all the songs, and all the songs are clean, no explicit albums, nothing but Arabic pointless songs.
        However, with Spotify it’s much much better, it has all the songs, I can connect it to my PS4, I use it for running, it suggests music to me super accurately “somehow”, The “New Music Radar” is awesome too.
        I think that apple music is good in the US store, BUT I’d still go for Spotify.

      • Sharkey311

        That’s good to hear that it works for you. And I can see why it does. It doesn’t for me, however.

      • Chris_Topher12

        What about the opinion of the 30 million paying Spotify users vs the 10 million paying Apple Music subscribers?
        Oh and add to that the other 55million people who enjoy Spotify for free…

        That’s 84,999,999 more significant that your one single opinion. Don’t make sweeping statements if all your basing it on is your limited subjectivity.

      • Sharkey311

        Please point out my sweeping statements. All I said was that in my opinion, Spotify sucks and is not for me and I listed the reasons. I found a worse fan base than Samsung users: Spotify fanboys are the absolute worst. It’s a f*cking music service. If you enjoy it, good for you. If someone else doesn’t, how about you act like a human being instead of a Neanderthal and respect other people’s preferences. Good hell people suck.

      • Chris_Topher12

        You’re the fanboy who is getting his panties on a twist with all this.

        I provided numbers – facts, not opinion. Just waiting for you to refute the numbers. Can’t wait.

      • Sharkey311

        The fanboy of what? Not-liking-Spotify fanboy? Numbers mean nothing. What are you comparing those numbers to? How many McDonald’s exist? Does that make McDonald’s a good place to consume food? Keep waiting for me to refute. There’s no reason to. Grow up, kid.

      • Chris_Topher12

        Typical

      • Sharkey311

        That’s what I thought. You’ve got nothing to say. Spotify will of course have more users seeing as it has been around a lot longer than AM. But that won’t last for long if they continue doing business like they have been. They’ve been in the red for a long time and now they’re wanting the industry to be okay with them paying less? LMAO.

      • Chris_Topher12

        Finally. You stick to the topic and provide your nominal opinion on the numbers. Didn’t really have to kick and shout but end up doing it anyway. Stick to the numbers if you want to keep the know-it-all look as you have so far. Stick to the numbers.

        Oh and stick to the numbers.

      • Chris_Topher12

        The numbers will always say more than you ever will. No matter how smart you make yourself to be.

      • Sharkey311

        I’m stating my opinions and humorist your sorry ass and proving your “OMG NUMBERZZZZ” are meaningless. Stop swinging off Spotify’s nuts dude. It’s embarrassing.

      • Chris_Topher12

        Unless you can provide industry-accepted facts, I’ll stick to the numbers that your words don’t stand up against. Thank you very much.

      • Sharkey311

        What numbers are those again? The 30 million paid Spotify and the 10 million paid Apple Music. Tell me why you are ignoring the fact that Spotify has been around since 2008 and Apple Music has only been around for less than 13 months? How are you not understanding this? And why can’t you accept that someone else has a different opinion about Spotify than yours? Calm your man-tits, kid.

      • Chris_Topher12

        Resorting to all caps does in your replies and not being able to stick to the numbers makes you sound like a kid throwing a tanty.

      • Sharkey311

        It’s called a quote, little boy. Keep telling me to stick to the numbers if that makes you feel better about your crappy music service.

      • Chris_Topher12

        Resorting to name calling makes you sound like a grown up. Especially if you can’t stick to the numbers.

      • Sharkey311

        Yep! That’s right, kiddo. Stick to those numbers! Yeah! Go Spotify!

      • Chris_Topher12

        Finally. The most sense you’ve made all day.

      • Chris_Topher12

        Oh and stick to the numbers.

      • Sharkey311

        Oh also, you failed to mention that Spotify released 2008 and has 30 million paid subscribers yet Apple Music was released just over a year ago and already has 10 million paid subscribers. What do you have to say about that?

      • Chris_Topher12

        As before, I still say stick to the numbers. Wow must really have your panties on an ultimate twist now.

      • Sharkey311

        You’re really pissed off that I have proven you wrong about this I’m laughing so hard right now. All you’ve got is Spotify 30 mill paid and Apple 10 mill paid. Yet you completely ignore the important factor which is active years of being a service. Learn to quit while you’re ahead and walk away with at least some dignity. Internet trolls just can’t seem to quit while they’re ahead.

      • Chris_Topher12

        Oh my you’re so wound up, it’s hilarious. Anyone who posts a fact that totally negates yours isn’t an internet troll hmmmkay?

        Love how you can’t let this go cause you can’t stick to the numbers.

      • Sharkey311

        Keep telling yourself that, bro. I’ll continue laughing at your childish tantrum. Spotify sucks and so do you 🙂

      • Chris_Topher12

        Said like a true adult who can’t stick to the facts.

      • Jake1047s

        lol this dude is just trying to piss you off. Lol music is music doesn’t matter what you use as long as your listening to it!

      • Sharkey311

        trying but failing miserably. It is so sad and funny at the same time observing someone that refuses to admit he was wrong.

      • Donstil

        Your are forgetting that Spotify is having 30 million subscribers after 10 years (Free not important) and Apple is having 15 after just one year.

        That’s saying something.

      • Sharkey311

        He is just pretending this fact doesn’t exist. No matter how long Spotify has been around to achieve 30 million, and how short Apple Music has been around to reach a 1/3 of that apparently doesn’t matter. He is beyond delusional and belongs in a hospital lol

      • Jeffrey Chang

        God, you are awful. Apple has had four decades to build a base of followers. We are on a freaking website about Apple products. Spotify started from nada, basically invented this business model and are incredibly successful in building a great app and corporate partnerships. Stop being such a tool. Also, Apple Music sucks.

  • edwilk55

    Not happy about having to migrate over to Apple, but hey, it is what it is.

  • Bugs Bunnay

    Damn look at these wall of texts! What i do like about spotify is that bdayspotify 2 still works!

  • Xee

    Deezer is better then Spotify and Apple Music

  • James G

    Sounds like a losing situation for Spotify…

  • George

    Apple music sucks, I’m going to google play music if Spotify dies.