The streaming service has a net value of of £5.5 billion after £265 million of new funding
A new reports claims Spotify is now worth more than the entire US music industry combined.
For the first time in history, revenue maintained from music streaming services has exceeded CD sales. Now, after receiving £265 million ($400 million) in funding, The Wall Street Journal reports that Spotify is currently worth more than the US recorded music industry as a whole.
The streaming service is now reported to have an estimated net value of £5.5 billion ($8.4 billion), which is said to be more than double of Pandora, its nearest rival, worth an estimated £2.3 billion ($3.5 billion) in its current state. In 2014, the revenue of the music industry was £4.62 billion ($6.97 billion), which includes physical sales, digital purchases and also streaming.
The Recording Industry Association of America (RIAA) have said that streaming income makes up 27% of the money made by the music industry, and Spotify is a large contributor to this percentage. However, the Swedish-founded company is still worth every retail music revenue source in the US put together.
Ed Sheeran recently became the first British artist and just second overall to achieve two billion Spotify streams. The singer and guitarist follows Eminem in reaching the milestone, beating Calvin Harris who, last September, became the first British solo artist to pass the one billion stream mark.