Trouble Could Be Ahead For Online Music Subscriptions

Rights costs typically account for over 70% of revenues and payments, technology and marketing taking most of the rest. So Apple’s 30% levy has the potential to instantly turn premium music subscriptions from low margin to negative margin businesses.

Spotify Is 2nd Largest Revenue Source For European Labels

“..on a European level, Spotify is the second single largest source of digital music revenue for record labels.”