Not only is Spotify one of the top competitors when it comes to streaming services but it is also the most valuable. The Wall Street Journal reports that Spotify is now worth more than the U.S music industry. They recently acquired $400 million more in funding, which made their worth skyrocket to $8.4 billion. The recording industry is reportedly worth about $6.8 billion.
Spotify also topped their competitor Pandora, who ranks below them with a worth of $3.5 billion. The service needs the cash to fund their business model where artists and rights holders are paid 70 percent of their revenue as royalties.
Spotify’s worth has spiked since last year, being valued at $5 billion.