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That works when more streams = more money. When users pay for premium, the revenue is capped. Artist payout depends on their 'market share' and it's a zero-sum
by michael_h 11y ago
That works when more streams = more money. When users pay for premium, the revenue is capped. Artist payout depends on their 'market share' and it's a zero-sum game.
http://www.spotifyartists.com/spotify-explained/#royalties-in-detail http://www.spotifyartists.com/spotify-explained/#royalties-i...
Let's say that there are 40 million paying users, all streaming 500 songs a month...and then there's me, who only streams 5 songs a month (I'm busy, and I like throwing money away).
So, there's 20,000,000,005 total streams that month, and $400 million in revenue. Spotify takes their cut, which leaves $280 million. My artist's share, according to bc:
echo '(5 / 20000000005) * 280000000' | bc -l
.06999999998040000000
Seven cents.
ADDED: To clarify, seven cents for five plays isn't a bad rate at all. From the user's perspective, though, it can be offputting that I'm attracted to the platform because of a certain set of artists, and then my money goes elsewhere. I understand why they do it. Popular acts attract users, and users mean money. They gotta feed the monkey.
- mfoy_ 11y agoSo if you subscribe to Spotify and then stream an extremely disproportionate amount of one artist in particular you can actually cause more money to flow to that artist than you are paying to Spotify? Sounds like a broken model.
- intopieces 11y ago>Sounds like a broken model. Basically. There was a band that had their fans plan silent tracks while they slept, and it earned them $20k: http://www.theverge.com/2014/5/7/5690590/spotify-removes-silent-album-that-earned-indie-band-20000 http://www.theverge.com/2014/5/7/5690590/spotify-removes-sil... Personally I think all the artist would be better off setting up donations via PayPal. "Did you steal our work? Throw us a few dollars."