My understanding was Spotify pays by the stream. Not out of some pool that is distributed based off a percentage of time spent listening compared to everything they have. Some quick Google searches show .003-.005 dollars per stream on average. Assuming Spotify will increase stream payouts if they don’t have to pay for “low quality” artists is like assuming a company will pay it’s employees more if they get a tax break. These streams are taking from Spotify, not other artists, because few people looking for white noise would choose these other artists if the white noise was unavailable. They would likely simply go to another app that does have white noise.
My understanding was Spotify pays by the stream. Not out of some pool that is distributed based off a percentage of time spent listening compared to everything they have.
From the article…
Universal Music Group’s CEO Lucian Grainge and Warner Music’s CEO Robert Kyncl have both voiced their displeasure at the fact that songs filled with noise are paid out of the same royalty pool shared by their superstars.
Spotify needs to get the money somehow first. They can’t increase prices indefinitely, and they can’t lower royalties indefinitely. That’s a rather simple calculation.
My understanding was Spotify pays by the stream. Not out of some pool that is distributed based off a percentage of time spent listening compared to everything they have. Some quick Google searches show .003-.005 dollars per stream on average. Assuming Spotify will increase stream payouts if they don’t have to pay for “low quality” artists is like assuming a company will pay it’s employees more if they get a tax break. These streams are taking from Spotify, not other artists, because few people looking for white noise would choose these other artists if the white noise was unavailable. They would likely simply go to another app that does have white noise.
From the article…
I wanna ask Spotify the same question i wanna ask media companies about region locking because of copyright shenanigans:
Why do you make your system to my problem?
Spotify needs to get the money somehow first. They can’t increase prices indefinitely, and they can’t lower royalties indefinitely. That’s a rather simple calculation.