A breakdown of how Spotify's royalty payments work
News: 1st April 2015 by Louise Dodgson under Artist Managers, Record Labels, Selling & Distributing Your Music
We came across this article which clearly and engagingly breaks down how Spotify's royalty system works which unfortunately sees a lot of smaller artists losing out as money generated from listens via the streaming services is pooled, then divided up and distributed, with the biggest share regularly given to the most popular artists, regardless of whether the plays were originated from them or not.
There's a few pie charts thrown in for good measure too but don't worry, it's nothing too heavy and well worth a read to broaden your understanding of the streaming model. There's also a couple more recent articles (links below) on the subject, also worth checking out...
Related Links
http://kernelmag.dailydot.com/issue-sections/staff-editorials/12136/spotify-royalty-payment-model/
http://www.adweek.com/news/technology/music-streaming-industry-destined-leave-artists-unhappy-163466
http://www.theguardian.com/technology/2015/apr/03/how-much-musicians-make-spotify-itunes-youtube
Tags
spotify, music streaming, streaming model, digital music, music royalties, music revenue
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