In effect, yes. Given that ~70% of revenue goes to rights holders, making the amount of revenue bigger by not paying 30% of subscriptions to Google, the savings are passed on to rights holders.
It’s net revenue split to rights holders according to the share of streams. If you have 1% of all streams on Spotify in a given time period, you get 0.7% of net revenue for that period.
How the rights holders distribute the money onward to the artists is not exactly transparent though.
Spotify pays 70% of its profits to artists. Not revenue. Almost all your subscription money and ad revenue goes to spotify. They just at some point decide that’s enough to take to spend on spotify, then give a tiny tiny amount to artists.
The real problem with the way Spotify distributes the money, is that they distribute it per play. This seems reasonable on the surface, but I think it’s pretty shit. I want my subscription fee to go to the artists I listen to. Right now they’re going to what most people listen to. This effect is worsened by the per-label deals: imagine if Beyonce wasn’t on Spotify, that would be bad for Spotify right? This gives her label (and by extension all major labels) massive leverage over how this works. It massively favors big artists.
The per-play model also enables playfarming as an economically viable scam.
Huh? If you listen to obscure music, they are paid for that, if you don’t they don’t. They base it of what people listen to, in the exact same way it would work if it was watermarked like you want it to be
No it wouldn’t. Imagine a hyper-small version of Spotify with two artists and two subscribers. The fee is 10$ per user, distributed fully to the artists (to make the math easy).
User A only listens to artist A, user B only listens to artist B. BUT: user A listens to artist A 30 times a month, while user b only listens to artist B 10 times a month. Artist A gets paid 15 of the 20 total dollars - user B is paying for some of artist A’s fee, even though they’ve never listened to them.
My Spotify subscription is paying for the artists most put on large playlists, the ones most played by fitness centers and cafes, and for botfarms. I want it to pay the artists I listen to.
My understanding is that they don’t split your subscription fee up to the people you listen to. They base it on who all of their subscribers are listening to. So even if you listened to your favorite obscure artists 24/7, they might not get a dime if nobody else is listening. However, a sizeable chunk of your subscription will go to whoever is most popular on the platform even if you didn’t listen to them at all.
While sure, there is leverage, but it’s not like Spotify is being arbitrary about their content. I can listen to obscure stuff, and I do. Also don’t forget that big artists are often big for a reason and it’s usually not for a lack of talent, taste just varies but certainly there always is a market for ‘pop music’.
And Spotify pass these savings onto the artists, right?
In effect, yes. Given that ~70% of revenue goes to rights holders, making the amount of revenue bigger by not paying 30% of subscriptions to Google, the savings are passed on to rights holders.
So, not exactly to the artists. I get the impression you seem to know quite a lot about the deal, can you try to analyze how this 70% gets divided?
https://support.spotify.com/us/artists/article/royalties/
It’s net revenue split to rights holders according to the share of streams. If you have 1% of all streams on Spotify in a given time period, you get 0.7% of net revenue for that period.
How the rights holders distribute the money onward to the artists is not exactly transparent though.
I suspected that much, it must be a complicated matter with many different cases, considering how music is produced. Thank you for your insight.
Any time.
To be clear, I don’t think this should be taken as a defense of Spotify. I just think that these misconceptions distract from more valid criticisms.
Thus could mean that 69% of revenues go to rights holders A and B and 1% of revenues are spread between holders C - Z.
According to this random site with no sources the ranking is: Napster, Tidal, Apple, YouTube Music, Deezer, YouTube, Spotify, Pandora.
Wonder where SoundCloud fits in.
Pretty sure no one uses that for exclusives only because it will get so few plays
Better be, but don’t be optimistic as they are called capitalist. You know what they love and hate.
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Spotify pays 70% of its profits to artists. Not revenue. Almost all your subscription money and ad revenue goes to spotify. They just at some point decide that’s enough to take to spend on spotify, then give a tiny tiny amount to artists.
That’s patently false, it’s 70% of revenue that goes to rights holders.
Seriously, why lie like this?
The real problem with the way Spotify distributes the money, is that they distribute it per play. This seems reasonable on the surface, but I think it’s pretty shit. I want my subscription fee to go to the artists I listen to. Right now they’re going to what most people listen to. This effect is worsened by the per-label deals: imagine if Beyonce wasn’t on Spotify, that would be bad for Spotify right? This gives her label (and by extension all major labels) massive leverage over how this works. It massively favors big artists.
The per-play model also enables playfarming as an economically viable scam.
Huh? If you listen to obscure music, they are paid for that, if you don’t they don’t. They base it of what people listen to, in the exact same way it would work if it was watermarked like you want it to be
No it wouldn’t. Imagine a hyper-small version of Spotify with two artists and two subscribers. The fee is 10$ per user, distributed fully to the artists (to make the math easy).
User A only listens to artist A, user B only listens to artist B. BUT: user A listens to artist A 30 times a month, while user b only listens to artist B 10 times a month. Artist A gets paid 15 of the 20 total dollars - user B is paying for some of artist A’s fee, even though they’ve never listened to them.
My Spotify subscription is paying for the artists most put on large playlists, the ones most played by fitness centers and cafes, and for botfarms. I want it to pay the artists I listen to.
My understanding is that they don’t split your subscription fee up to the people you listen to. They base it on who all of their subscribers are listening to. So even if you listened to your favorite obscure artists 24/7, they might not get a dime if nobody else is listening. However, a sizeable chunk of your subscription will go to whoever is most popular on the platform even if you didn’t listen to them at all.
While sure, there is leverage, but it’s not like Spotify is being arbitrary about their content. I can listen to obscure stuff, and I do. Also don’t forget that big artists are often big for a reason and it’s usually not for a lack of talent, taste just varies but certainly there always is a market for ‘pop music’.
There’s a reason I use Tidal
The site you linked says YouTube pays “$0.0.00069 per view” lol