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It's a similar to Apple's app store model. 70% gets passed on to whomever owns the rights and it is often a record company, but not always. As I understand it,
by criddell 4y ago
It's a similar to Apple's app store model. 70% gets passed on to whomever owns the rights and it is often a record company, but not always. As I understand it, some artists (like Paul Simon) own the rights to their music.
Sony Music owns 2.5% of Spotify and Universal Music owns 3.5%. I sometimes wonder if those publishers have made more money on the stock or on royalty payments? It also creates a bit of a conflict of interest for the companies in that they benefit in more than one way when by getting their artists on Spotify.
- lotsofpulp 4y agoI do not think anyone has earned much money on Spotify stock except the earliest investors: https://www.macrotrends.net/stocks/charts/SPOT/spotify-technology/market-cap https://www.macrotrends.net/stocks/charts/SPOT/spotify-techn...
- criddell 4y agoThe record companies were early investors. As I understand it, Spotify gave the big record companies pre-IPO stock in exchange for putting their catalogs on the service.
- lotsofpulp 4y agoThat makes sense. I can see record companies wanting Spotify to exist just to have an additional customer to help negotiate with Apple/Amazon/Google.