Spotify founder Daniel Ek has spoken candidly about the amount of revenue rights-holders can expect to earn from streaming services, saying it will take 200 streams of a song to earn the equivalent of a paid for download.
Speaking to QZ.com, Ek went on to say that beyond that number, however, the streaming model is “better”, its effect simply kicks in further along the lifecycle of a track.
“I can tell you it will take you 200 song listens before you make the same amount of money [as a download],” he told the site. “But because the consumption behavior is entirely different, and the revenue then increases perpetually, it’s not even a question of if this model is better, it’s just when in the lifecycle it’s better.”
Spotify was said to have raised around $100 million last week in a round of investment led by Goldman Sachs. Coca-Cola was one of the names involved in the investment.