Spotify Becomes The Music Industry’s Second Largest Revenue Source

    It seems like the music industry has finally found a successful middle ground between traditional retailers and illegal downloading. On-demand music service Spotify has officially become the second largest source of revenue for major music labels. While Spotify still falls significantly behind the number one revenue source, iTunes, the company is still strongly on its upswing.

    Spotify investor and Napster co-founder Sean Parker stated earlier this year “if we continue growing at our current rate in terms of subscriptions and downloads, we’ll overtake iTunes in terms of contributions to the recorded music business in under two years.” If Parker’s estimate is correct, the music industry will soon be getting the biggest share of its income from a service that doesn’t cost non-premium listeners a thing. [Business Insider]