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Thursday, July 28, 2011

IB on Spotify deals with majors

SPOTIFACTS: Less than two weeks after its U.S. launch, there’s a big buzz surrounding Spotify, which some are predicting will be as big a game changer as iTunes. According to the terms of the majors’ licensing deals with the service, the three sources of revenue—advertising, subscriptions and, in the near future, downloads—are all split 70/30 in the labels’ favor, a la iTunes, with streaming usage calculated on percentage splits among the Big Four. (7/28a)

 
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