[oo7jeep]

1. "iTunes is also the preferred tool for listening to pirated music, which generates nothing for artists."

Spotify has paid out $1B in 9 years. iTunes is paying out over $1B PER QUARTER. [1]

2. Spotify also has an ARPU cap ($120/yr) - Not only do none of their competitors have this, but it is likely others will find ways to increase APRU (better video CPMs or iTunes exclusives are just a few options). This will likely make Spotify a less appealing distribution option going forward.

3. It seems implausible Spotify is the cause for reduced piracy - YouTube has 10x the content, $0 cost, no need to download an application or creating an account and has 50x the user base.

[1] - Don't worry, I'm not including app sales in this figure.

[aston]

Beyonce's latest release on iTunes sold over 1 million copies in less than a week at a very premium $15.99 a pop [1]. And there's no need to pirate it, as videos of her best songs are already heading to VEVO/YouTube now [2]. It's a win-win, and Spotify's not a huge part of that story.

[1] http://www.cnbc.com/id/101283857

[2] http://www.vevo.com/watch/beyonce/drunk-in-love-explicit/USS...

[fons]

Spotify started 5 years ago not 9 plus most of its revenue came last year.

[salient]

iTunes has a much larger userbase, though. Spotify actually generated half a billion last year alone.