> Spotify need the record companies, but the record companies don't need Spotify. For now the record companies are squeezing Spotify for all their revenue, but it's no trouble to them if Spotify goes out of business.
I suspect Spotify knows this, and is betting on getting too big to fail before the record companies push them under.
I guess that is the strategy they are playing, but I can't help thinking Spotify are going to be in a weak position no matter how large they are.
Fundamentally, the service they offer is not particularly difficult to replicate. They take music and stream it to users, supported by either advertising or a monthly subscription.
They act as a middle man that the big three record labels could easily cut out, and at the same time these labels can effectively pull the plug on Spotify at their convenience.
I suspect Spotify knows this, and is betting on getting too big to fail before the record companies push them under.