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Interesting thought, but doesn't Spotify get my same monthly membership fee, whether I play 1 track or 1,000? Although, I suppose this line of thinking makes s
by bowmessage 3y ago
Interesting thought, but doesn't Spotify get my same monthly membership fee, whether I play 1 track or 1,000?
Although, I suppose this line of thinking makes sense for ad-supported streaming, which is likely used by the majority of users.
- delusional 3y agoFinancially, I think they count a stream after 30 seconds, and they pay per stream, therefore they'd either want you to skip before 30 seconds (making it free for them) or otherwise spend the maximum time with the song (such that they only pay for 1 stream). The most expensive way for you to listen to spotify is to skip the song every 31 seconds.
- nerdponx 3y agoI wonder how this works with "grindcore" bands like Agoraphobic Nosebleed.
- numbp4d 3y agoThis is not how they pay out subscription $. They do not pay per stream. While the payout algorithm is highly complicated, essentially it is a % of subscription dollars distributed pro-rata by stream count to copyright holders (where a 1 stream is at least 30s of listening).
- delusional 3y agoAh, so consumption is entirely decoupled downstream payment? That's interesting. Thanks for telling me.
- numbp4d 3y agoConsumption is directly linked to ultimate payments by Spotify to copyright holders. However it is not done on a per stream basis. It is paid out of a pool of earnings on a pro-rata basis. Each copyright holder negotiates its own formulas with Spotify / others for payouts, however they all have some version of the pro-rata payout system. So in the sense of direct financial incentive, it would be best to drive customers toward music where the payout formulas are the lowest (e.g. their owned content), assuming it wouldn’t increase churn or reduce premium sign ups.