A major music label insider has claimed that their top two sources of income are now iTunes and Spotify.
Business Insider reports that a major music label source claims that online music is the major source of revenue for them.
iTunes remains the biggest revenue raiser by far, reportedly paying $3.2 billion to major labels in 2011. But the big surprise is that physical sales have already been trumped by the music streaming service Spotify.
They report that Spotify investor (and Napster founder) Sean Parker said at SXSW, “If we [Spotify] continue growing at our current rate in terms of subscriptions and downloads, we’ll overtake iTunes in terms of contributions to the recorded music business in under two years.”
Spotify was launched in 2006, and hit Australia earlier this year, and is currently valued at an estimated $4 billion.