Spotify's Chief Content Officer Stefan Blom Exiting Company

Spotify's Chief Content Officer Stefan Blom Exiting Company

But many artists complain that they see little of the profit. Streaming has completely changed the way the content distribution game is played on a massive level.

In May, Spotify paid $43.4 million to settle a class-action lawsuit filed by musicians Melissa Ferrick and David Lowery, who accused the digital music service of streaming their songs without a license.

Audio streaming grew overall by more than 50 per cent last year from the previous year. Wixen is the exclusive publisher of some of the most popular songs by a lot of top artists in the music industry. Songs like "Free Fallin" by Tom Petty, "Light My Fire" by the Doors, and even works by Weezer, Missy Elliott, and The Beach Boys are included in the claim.

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Spotify was recently served a lawsuit that demanded up to $1.6 billion in compensation for a number of songs that the company allegedly uploaded without acquiring the proper license. At the heart of the suit, filed December 29 in U.S. District Court in Los Angeles, is Wixen's allegation that Spotify did not obtain one of two licenses required to distribute music.

While it is common for small entities and individuals to reproduce and stream copyrighted content - without any real threat of being sued - larger companies like Spotify are not afforded that same leniency.

The confidential filing was initially reported by news outlet Axios. "But Spotify failed to obtain either license type", and instead outsourced that role to the Harry Fox Agency, which the suit says "Spotify knew ... did not possess the infrastructure to obtain the required mechanical licenses and Spotify knew it lacked these licenses".

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What are your thoughts on the Spotify's lawsuit?

REUTERS/Dado RuvicAfter a million settlement planned, Spotify is facing a.6 billion lawsuit.

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