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Introduction

A new report published by the European Commission’s Joint Research Centre has examined how the rise of music subscription service Spotify has affected sales of downloads and the popularity of unlicensed online music distribution.

Highlights

  • The report notes that losses from displaced sales are roughly outweighed by the gains in streaming revenue, meaning that Spotify is effectively revenue-neutral for the recorded music industry.

Features and Benefits

  • Evaluates a new report published by the EC JRC on how Spotify has impacted the music market's revenue
  • Highlights the problems with the JRC research

Key questions answered

  • Why is Spotify seen as revenue-neutral for the recorded music industry?
  • Why has the research prompted more questions than answers over the value of music streaming?

Table of contents

Ovum view

  • Summary
  • Spotify gives and takes in equal measure
  • Difficulties in establishing displacement accuracy
  • Raising the issue of fair revenue distribution

Appendix

  • Author

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