Currently, Spotify is preparing for an IPO and labels would like the service to raise its revenue split from 55% to 58%. However, the company would like raise the split to lower than 50%.
"How far down Spotify want to push this rev share is a matter of debate: one label source told us today that Spotify has asked to go below 50%, but a senior Spotify source flatly told us this is untrue.
(Apple is also believed to pay publishers 13.5%-15% of revenue depending on the territory – slightly higher than Spotify.) Regardless, the idea of Spotify paying labels – and artists – a lower portion of its income is bound to be highly contentious."
Apple Music currently splits its revenue at 58%, but obviously a much larger company. Spotify reported a $194 million loss last year and would like to use spending on exclusive artist deals like Apple.
