It’s exactly about competition. Stockholm based Spotify, right now facing different competition from Google and Apple’s streaming music services, has chose to hire 130 engineers. New York City, planning to become an east coast existence in the technology world, really wants to grab those job openings. Therefore New York City Mayor Michael Bloomberg merged with Spotify to declare that the latter will fill these 130 openings, ironically, in the Big Apple. Not just would this raise the head count of Spotify staff to 200, it would certainly mean that nearly all the company would work in the media capital of the world.
In the 5 years that it has been in business, Spotify has created up a membership of 10 million people, with 2.5 million of them purchasing the service. Talking about paying, Spotify has paid out $500 million in royalties and licensing fees to the music industry. The program offers streaming music in addition to radio stations according to specific artists. The free version of Spotify has listening caps and provides advertising although the paid version provides buyers unlimited listening.
New players are getting into the mix, nevertheless. Microsoft MSFT +0.07% recently announced its release of Xbox Music’s web client, making it a obvious competitor with 30 million song offerings (there’s also a restricted free version of the program). But Xbox Music can simply be employed on some Microsoft devices. Apple AAPL +1.81% is additionally joining the ranks with its announcement of iTunes Radio, likely to do serious harm to competition when released this fall. The supposed patent for iTunes Radio, at first filed in 2011, was launched to the public today, revealing functions that could revolutionize online radio.
Having the desire for streaming music and internet radio providers always on the rise, the problem of artist compensation is more and more crucial. Both Spotify and Pandora have lately come under fire for their skimpy royalty payment rates. Apple is trying to capitalize on recent bad press by providing better payments to independent labels.