Spotify has been popular among users, but the record industry is still suspicious of the service. Ever since Napster, the music business — hopelessly tone deaf to the changes in the media landscape – has had a hard time trusting Internet music companies. Spotify, which Napster cofounder Sean Parker invested in, has tried to go legit with licensing music, but many record execs and artists don’t think Spotify offers a payout that is fair yet.
So how can Spotify prove it’s got a winning model? If the company began to make a larger amount of annual revenue, would it begin to convince the music industry that the model is viable?
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