Spotify Moves Into Asia, LatAm as Streaming Radio Competition Heats Up (P) (AAPL)
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Spotify said it was expanding into Asia and Latin America with the launch of its streaming service in eight new countries, aiming to keep up with larger peer Pandora Media (NYSE: P) in the expanding global streaming radio market.
According to a statement from Spotify, markets will include Mexico, Hong Kong, Malaysia, Singapore. Other markets the company will be entering include Iceland, Lithuania, Latvia, and Estonia.
Spotify currently streams in the U.S., most of Europe, Australia, and New Zealand.
Despite the expansion, music streamers like Spotfiy and Pandora generally pay most of revenue earned back to content providers via royalty fees, meaning the streaming radio business is though. Apple (Nasdaq: AAPL) is said to mull entering the business, while Google (Nasdaq: GOOG) and Amazon (Nasdaq: AMZN) are taking a keen eye as well.
While Pandora pays about 12 cents for every 100 songs streamed, Spotify shells out a whopping 35 cents per 100 songs. Apple is said to be looking to pay just 6 cents per 100 songs, causing some music labels to balk at the offer.
Shares of Pandora are holding firm, up about 0.8 percent in early trading Tuesday.
According to a statement from Spotify, markets will include Mexico, Hong Kong, Malaysia, Singapore. Other markets the company will be entering include Iceland, Lithuania, Latvia, and Estonia.
Spotify currently streams in the U.S., most of Europe, Australia, and New Zealand.
Despite the expansion, music streamers like Spotfiy and Pandora generally pay most of revenue earned back to content providers via royalty fees, meaning the streaming radio business is though. Apple (Nasdaq: AAPL) is said to mull entering the business, while Google (Nasdaq: GOOG) and Amazon (Nasdaq: AMZN) are taking a keen eye as well.
While Pandora pays about 12 cents for every 100 songs streamed, Spotify shells out a whopping 35 cents per 100 songs. Apple is said to be looking to pay just 6 cents per 100 songs, causing some music labels to balk at the offer.
Shares of Pandora are holding firm, up about 0.8 percent in early trading Tuesday.
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