Legitimacy followed up by ingenuity.
Looks like Spotify isn’t going anywhere soon, at least until (s)Apple(/s) some terrified corporate giant buys it out…
This week the revolutionary music streaming service has gained official approval by the Performing Rights Society (PRS) – a necessary step to continue operating in the UK. Negotiations had been ongoing until this point with Spotify and the PBS haggling over revenue shares.
One nasty surprise Spotify could still face however is a back-dated claim for a cut in revenue payments to which PRS is entitled. Expect Spotify to claim start-up-poverty-101 but whether that will make a difference remains to be seen. The much publicised YouTube PRS dispute has seen the two reach an impasse over the cost of a PRS licence, so Spotify is dealing with one tough cookie.
Elsewhere in Spotify land, the company has announced a deal with Ditto Music which allows unsigned acts to upload their music into the Spotify main catalogue. Like regular acts, unsigned bands will be entitled to royalties when their tracks are played though they face a £2 per month charge from Ditto for hosting the music in order to dissuade the truly terrible from flooding the site.
The agreement follows on from the 7Digital Spotify download deal which allows users to download DRM free versions of their favourite tracks. A handy tool – at least until the mobile Android/iPhone Spotify clients turn up.
It’s a harsh world out there, but it seems Spotify has already learnt the street smarts to wheel and deal out there…