Some think we’ve entered another internet bubble, of which music is just one component.
Well, this could provide all the evidence they need. According to a tip from TechCrunch, Spotify is about to receive a very handsome funding round from DST. That is, a major backer behind Facebook, Groupon, and Zynga, among others.
So how much? The “very large” amount of funding could exceed $100 million, as unbelievable as that seems. Sounds like ‘dumb money’ defined, unless that is, the future really is monetized cloud-based streaming. But let’s see what actually materializes – this week, and this decade.
And how would this funding drop affect the stateside licensing situation? The company just inked a licensing deal with EMI, and Warner Music Group appears to be softening. But let’s face it: with enough upfront cash, stubborn ideologies and monetization problems have a way of getting re-rationalized. Especially given the distressed balance sheets of major labels.