Spotify?

Didn't want to derail the Megadeth thread any further, but was curious with things like Spotify how do the artist make money off of it?  I know there is a subscription involved but how are things like royalties handled?  The download system is screwing enough in it's accounting how does this work with streaming?

Artists are paid royalties in Spotify, but it's a tiny amount ($.004 cents per song). Still better than making nothing from illegal downloads, but a song has to be played hundreds of times for the artist to receive the same amount of money as someone purchasing the song in iTunes.

It still sounds like a really awkward menstrual-related product.

What a bad deal for the artists.  Is it safe to assume the record (or parent) companies are invested in these sites for them to sign over rights for such a one-sided deal?  Can't imagine the accounting practices that go on with this.

jstate wrote:

What a bad deal for the artists.  Is it safe to assume the record (or parent) companies are invested in these sites for them to sign over rights for such a one-sided deal?  Can't imagine the accounting practices that go on with this.

The record labels get all their money. Spotify is still operating at a loss, so they aren't getting rich off this stuff either. If you want to see where all the money goes in the music business, look no further than the record labels.

S.D. wrote:

jstate wrote:

What a bad deal for the artists.  Is it safe to assume the record (or parent) companies are invested in these sites for them to sign over rights for such a one-sided deal?  Can't imagine the accounting practices that go on with this.

The record labels get all their money.  Spotify is still operating at a loss, so they aren't getting rich off this stuff either.  If you want to see where all the money goes in the music business, look no further than the record labels.

Yup.

Interesting...

Quote :

Pink Floyd have released their entire back-catalogue on Spotify after saying they’d do so on once Wish You Were Here had been streamed one million times. The target figure was reached in four days. Spotify boss Ken Parks says: “It’s a great day for fans of prog rock, but it’s also a great day for younger fans who have yet to be really turned on to the magic of Floyd. That’s a lot of what this is about: bringing a new generation of fans to one of the biggest and most iconic bands in the world.”

That's pretty brave of PF to do considering I'm sure they sell a ton of catalogue titles.  Wonder what the balance sheet will look like - streaming venue vs. catalogue sales.