Financial Times FT.com

Online music wins boost from cut in fees

By Tim Bradshaw and Salamander Davoudi

Published: May 27 2009 03:00 | Last updated: May 27 2009 03:00

Online music services have received a much needed boost to their business model after the UK royalty collection agency cut the charges they must pay artists for playing a track.

PRS for Music yesterday announced it was lowering the prices for streaming music online by almost two-thirds - a move that will benefit sites such as Last.fm, We7 and Spotify , which have found it hard to get enough advertising revenue to cover their streaming costs.

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