After last year’s bad press regarding how much Spotify pays labels, and then in turn, artists. It would seem consumers are voting with their wallets as the streaming service is set to overtake iTunes in Europe as the biggest revenue generator for the music industry.
“Some of our partners are saying Spotify is now generating more revenue each month across Continental Europe than iTunes,” Spotify’s head of label relations in Europe, Kevin Brown, told industry site Music Week.
“Given that download sales are declining and Spotify is growing rapidly, particularly in the UK, it is only a matter of time before Spotify is bigger than iTunes across Europe as a whole.”
Last year, Spotify faced a backlash from musicians, most notably Tom Yorke, who described the service as the last “dying fart of a dying corpse” with regards to the service’s the low royalty payouts.
One of the main criticisms with the service was transparency – so in the December 2013, the streaming services launched an artist-facing website breaking down the monthly revenues from a big hit album compared to an indie release.
For a major release, the service would expect to the pay out $425,000 compared to the just $3,300 a month for a smaller niche indie album. They also outlined how the revenue would change if the service reached its 40 million subscriber milestone.
It’s clear the music industry is reaching a tipping point where streaming is becoming more lucrative than downloads, and with iTunes expected to launch its own streaming service later this year we might just be reaching that point very soon.