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Spotify already pays 70% of their revenue in royalties to record labels. What do you think would be fair? 90%?

• rayiner 12y ago
  Spotify just moves bits from point A to point B. They don't even help get the music created the way the studios do (by providing the equipment). And technology makes moving bits very cheap indeed. So why isn't 90% reasonable? Or 95%?
  • delinka 12y ago
    Servers, storage and bandwidth do indeed have costs. The labor involved to run this infrastructure has a cost. The existence of Spotify fills a demand by artists' listeners. That's a lot of value. Are you suggesting that the value provided in meeting customer demand is worth "nearly zero"?
  • freehunter 12y ago
    The studios have all the opportunity to make their own streaming service. What Spotify provides is customers, something the labels have not had for a long time now. Spotify is able to make people pay for music again, and that's worth something.
• te_chris 12y ago
  That's an entirely irrelevant argument, although it suits spotify as it makes them sound generous - they only take 30%, they're such saints! What they should do is stop loss leading their service off the back of cheap valley money and charge more. It's simple, but they refuse to, because like most other valley companies, they're unsustainable if they don't scale.