iTunes pays $0.903 per song to the ARTIST?
30 seconds of google searching shows that your claim is utter crap. Unless you're an indie artist, at least half of the profit goes directly to the label artists are signed under.
Do research before you make you outrageous claims.
I never said "
ARTIST"
I said Itunes pays and Spotify pays.
Of that money ($0.903 and ~$0.005 per stream) will be divided:
1) record labels
2) artists
3) song publishers/writers
depending on their contracts.
For indie artists who are their own record labels and song publisher/writers, they get the whole amount (well not quite the whole amount since distributors/aggregators like CDBaby, Tunecore etc.. also take a cut). An indie can't upload directly to Itunes (has to pay an distributor/aggregator for that).
Anyway, my point is that 1 download = 181 Spotify streams.
With scale, Spotify will be good for the music industry.
January, 2010:------------ 250,000 paid subscribers
March 17, 2010:----------- 320,000
July 20, 2010: ---------------- 500,000
December 8, 2010: ------ 750,000
March 8, 2011:--------------- 1,000,000
July 14, 2011: -----------------1,600,000
Sept 21, 2011: ---------------- 2,000,000
Nov 23, 2011: ------------------2,500,000
Jan 26, 2012: -------------------3,000,000 paid subscribers
2011 revenue: $241 mil
2012 projected: $889 mil
Subscription music will overtake Itunes in about 4-5 years.
