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.