Streaming is the future of the music business. Everybody knows this. Except, it appears, the record companies. On Tuesday, August 7, 2018, in an earnings call with stock analysts, Warner Music Groups revealed that it had now sold all of its holdings of stock in Spotify, realizing $504 million. This is the culmination of a trend. Within one month after Spotify’s shares first traded publically in the United States, the labels immediately started dumping their shares. In fact, almost immediately after public trading, Independent Record Label Global Digital Rights Agency sold 100% of its shares in Spotify. What’s going on? Nova Southeastern University's Copyright Officer, Stephen Carlisle, J.D., examines Spotify’s revenue and expenses, as well as its business model, and shows that it’s not all unicorns and rainbows at the streaming giant.
