Top commercial music streaming service Spotify is, according to a new report by the Wall Street Journal, worth more than the US music industry.
The company that provides digital rights managements-restricted content from record labels, is close to closing a deal for $400 million in new funding.
The deal pushed the streaming service up to a net value of $8.4 billion, more than double that of its nearest competitor Pandora, which sits at around $3.5 billion.
In a year-end report, the RIAA (Recording Industry Association of America) states that the US music industry’s 2014 revenue was $6.97 billion.
Streaming services make up 27% of the industry’s revenue, and paid subscriptions have doubled since 2011, bringing the total number of subscribers up to 7.7 million. Total industry revenue from paid streaming services is estimated at about $1.87 billion.
The music streaming debate has been overrun by talk of Jay-Z’s celebrity-endorsed app Tidal, which has already crashed out of the top 700 US apps. Behind these headlines, Spotify launched in October 2008 by Swedish startup Spotify AB is still making its quiet ascendance.