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Spotify Officially Worth More Than the Entire US Recorded Music Industry

Spotify Officially Worth More Than the Entire US Recorded Music Industry

By The Hundreds Staff

With Apple’s Jimmy Iovine revamping Beats Music for its summer relaunch and Jay Z’s Tidal quickly spiraling down the IPhone top 700 apps, streaming giant Spotify has just been valued by the Wall Street Journal at 8.4 billion, making it worth more than the entire music industry combined. Recently, a large investment of $400 million by Goldman Sachs has pushed the Swedish-based company to its peak. The emergence of the streaming industry (rival Pandora sits near with a respectable worth valued at 4 billion) as the dominant platform for interacting with music over the last ten years has long been predicted as well as feared by the Big Three (Sony, Universal, Warner) since the days of Napster. Years of high profile profit margins in the late ’90s and early 2000s led to a slow appreciation of the digital music big major labels, leading us to the state of affairs we see now. Earlier this year, the RIAA made history declaring that, for the first time, the profit made from streaming surpassed that made from the sale of CDs. What this means for the future of content providers is uncertain.

 

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