What Does Spotify’s Funding Say About Freemium Music Fortunes?

Does Spotify’s new VC funding now suggest confidence that ad-supported music service can really work? Depends who you talk to…

Steve Purdham, CEO of ad- and premium-funded streaming site We7, is seeing it as a positive rather than as a victory for a competitor: “We see this as an outstanding announcement given the stage in the maturity of the ad-funded music market, and it is exceptionally positive for We7’s potential valuation going forward.”

But Forrester research director and music analyst Mark Mulligan cautions: “Spotify has made a great start but it hasn