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Spotify is great if you want to listen to Top 40, mainstream, music curated for you by a corporation. Loads of stuff hasn't made it to Spotify, it is in no way comprehensive. If you are interested in any new electronic music, you won't find it behind your $120 annual fee. Not to mention Spotify is a raw deal for artists (hence why it's only the most mainstream, with the stream becoming narrower by the minute!)
 
Spotify is great if you want to listen to Top 40, mainstream, music curated for you by a corporation. Loads of stuff hasn't made it to Spotify, it is in no way comprehensive. If you are interested in any new electronic music, you won't find it behind your $120 annual fee. Not to mention Spotify is a raw deal for artists (hence why it's only the most mainstream, with the stream becoming narrower by the minute!)

Spotify is NOT a raw deal for artists, no more than any other subscription based or broadcast medium. And their library is growing very quickly. There are a lot of problems with Spotify (see my other posts), but size of library and artist payments are not either of them.

Edit: I originally just said "library", but I meant "size of library" -- you're absolutely right that the focus is somewhat lowest-common-denominator, and there are massive gaps as you get deep into most genres.
 
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Oh, it is.

One local artist had their single played 400.000 times. The band got 50 euros for it.

I want a band name and a source. Far too many of these "I know a..." stories going around without any actual facts behind them.

And, assuming it's true, that's the label's fault, not Spotify's. Not everyone is getting such awful rates.
 
Link and stuff PMd.

Thanks for that. It's a shame, those guys do seem to be getting screwed. However, from what I could tell from the translation, their physical distribution royalties seem to be pretty awful, as well - it looks like they're just in an awful record deal.

In general, the royalties from Spotify are very comparable to other streaming / broadband plays, i.e., not going to get rich on them, but a nice secondary source of some money coming in. The actual rates vary from label to label (and even artist to artist), but from a bit of research (also anecdotally, as this is what my band receives from Spotify spins), the "going rate" seems to be $0.005 / play. Now, certainly, that's not going to make you rich (you need 200 plays just to make a dollar), but it's a lot better than the example you provided -- they should have made over $2,000 from those plays.
 
Thanks for that. It's a shame, those guys do seem to be getting screwed. However, from what I could tell from the translation, their physical distribution royalties seem to be pretty awful, as well - it looks like they're just in an awful record deal.

In general, the royalties from Spotify are very comparable to other streaming / broadband plays, i.e., not going to get rich on them, but a nice secondary source of some money coming in. The actual rates vary from label to label (and even artist to artist), but from a bit of research (also anecdotally, as this is what my band receives from Spotify spins), the "going rate" seems to be $0.005 / play. Now, certainly, that's not going to make you rich (you need 200 plays just to make a dollar), but it's a lot better than the example you provided -- they should have made over $2,000 from those plays.

Yup, it has been documented that the RIGHTS OWNERS get about $1 for every 200 Spotify plays. However, if you sign over the rights to a record label, you will only get a fraction.

For example, Lady Gaga label Interscope get about $1 million USD from Spotify for every 200 million Spotify plays. From that, the label will take its cut, and maybe 15% of that will go to Lady Gaga. But if you're an indie band and own the rights 100%, you get the full $1 million if you get 200 million Spotify play.



Spotify is currently valued at $4,000,000,000 USD.

http://dealbook.nytimes.com/2012/05...s-in-a-deal-that-would-value-it-at-4-billion/


Spotify is in the process of raising a new round of financing that would value the popular online music service at up to $4 billion, according to people with knowledge of the matter, in the latest eye-popping Internet company valuation.

Spotify so far is on track to raise about $220 million. Goldman Sachs is to lead the round with about $100 million, or about half of the round, two of these people added. The people asked for anonymity because they said they would lose their jobs if their identities were known. The company, which is still in discussions with several major venture capital firms, may change the size of the financing round, depending on demand.


Which mean Apple will debut its Spotify-like service in the near future.
 
Yup, it has been documented that the RIGHTS OWNERS get about $1 for every 200 Spotify plays. However, if you sign over the rights to a record label, you will only get a fraction.

At least in our case, the 0.005 was our cut, after our label took their cut. Note that this is an order of magnitude greater than terrestrial radio per-play royalties.
 
http://www.digitalmusicnews.com/permalink/2012/120721adele

spotify_per_stream_tiers.jpg


Just 46 streams from a Premium User = 1 Itunes $0.99 download.
Mobile Stream is the new Spotify Radio that pay the same rate as Pandora. The rate was set by Congress for online radio.




4,000,000+ paid subscribers
and the #2 source of revenue for the music industry (Itunes is #1, I'm guessing Amazon is now #3).


http://techcrunch.com/2012/07/31/sp...-15m-active-users-over-4m-paying-subscribers/

At the ‘Global Business Summit on Creative Content‘ in London Ken Parks (Spotify’s Chief Content Officer and Managing Director of Spotify N. America) said Spotify now has over 15 million active users and over 4 million paying subscribers.


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
July 31, 2012:--------------------4,000,000
 
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