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The Guardian has got this utterly wrong. The MCPS/PRS fee for on-demand streaming is absolutely the least of your worries. You also have to pay money directly
by russss 17y ago
The Guardian has got this utterly wrong. The MCPS/PRS fee for on-demand streaming is absolutely the least of your worries.
You also have to pay money directly to the labels for the right to stream the recordings, and this is massively higher than the performance royalties. And let's not forget that Spotify has given the major labels a 20%+ equity share.
If Spotify becomes profitable, it will be because they are the company to finally convince the record industry that their royalty rates are untenable. I very much hope they succeed.
- kierank 17y agoThe article also claims huge hosting/bandwidth costs. It completely ignores the fact that Spotify is a p2p application that doesn't seem to use a major CDN. Pricing used is in that article is CDN pricing. For content streamed from origin servers, they're almost certainly peering a lot of that bandwidth away. The article uses Rackspace cloud pricing as an example. Spotify doesn't seem to run on any cloud either - they seemingly run things in-house. What is it about journalists just loving to claim huge infrastructural costs?