Feeds

Big label stakes highlight Spotify's truthiness trouble

This is my truth, tell me yours

High performance access to file storage

Major labels have the largest equity stakes in Spotify, a Swedish computer title reports. The company has previously denied this. But how much will artists see from the deals?

The four major labels - Universal, Warners, Sony, and EMI paid for an 18 per cent share of Spotify's stock. Merlin, the licensing agency backed by the independent sector, also took an equity stake. That's larger than any other single investor.

As with many digital deals, the share returned to artists is unclear.

Brian Message, chairman of the Music Managers' Forum, told El Reg that he was "looking forward concluding discussions where the contracted artists share of the equity position is crystalised'".

Earlier this week, the Financial Times reported that a Hong Kong billionaire was seeking a $50m investment in Spotify - but that would buy a smaller stake than the aggregate major label holding.

Merlin seems pleased with the investment - saying it's confirms interest in independent music once the public has a free choice. Indeed, the indies are well represented with services that return little or no revenue; cracking the more profitable services, where majors seek to exert more control, is more challenging.

But it's a puzzle why Spotify has denied to senior music business figures that there was major label equity in the service. Confirmation that there was equity has come from major label sources.

It's not the first time that Spotify has been less than straight.

In June we exclusively published Spotify's revenues and subscriptions. The company denied they were accurate to a trade publication - but these were Spotify's own numbers. This either means that Spotify is providing inaccurate information to its partners, or it's lying.

Why does it have such a problem telling the truth?

Founders Daniel Ek and Martin Lorentzon own the majority of the stock via Cyprus-based investment vehicles. Ek and Lorentzon are Swedish; the company is registered in Luxembourg. You can read the report from Computer Sweden via MacWorld here. ®

High performance access to file storage

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Nokia offers 'voluntary retirement' to 6,000+ Indian employees
India's 'predictability and stability' cited as mobe-maker's tax payment deadline nears
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
France bans managers from contacting workers outside business hours
«Email? Mais non ... il est plus tard que six heures du soir!»
Adrian Mole author Sue Townsend dies at 68
RIP Blighty's best-selling author of the 1980s
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.