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Monday, July 06, 2009

Another internet music play gets a free ride from the City pages

All stories about music companies get disproportionate space on the financial pages because they provide the section editor with an excuse to run a picture of a glamorous woman singer under a headline about being "on song". There was a classic on the front page of the Sunday Times's Business Section yesterday: Fergie from the Black Eyed Peas under "Going For The Big Notes", which announced a story about Spotify seeking to raise another £30m. In this I wish them well but I wonder if a little bit of the page area devoted to Fergie's frock could have been used to ask the odd question.

Spotify costs the end user nothing. Its revenue comes from either advertising or monthly subscriptions. Since it's signed up more than 2m users since last October you might say that the company's proud claim to be doubling revenues monthly is not quite as spectacular as it first appears.