Spotify has launched a website to explain how it pays royalties amid criticism

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Spotify launched a new website on Thursday addressing questions about how it pays its fees, but failed to quell growing anger among musicians struggling to survive the streaming era.

“Artists deserve clarity about the economics of music streaming” Spotify said his new one Strong and clear The site, adding that it aims to “increase transparency by sharing new data on the global streaming economy and breaking down the reward system, players and the process.”

According to him, 13,400 artists generated revenue of $ 50,000 (approximately Rs. 36.2 lac.) Or more from their application last year, and 7,800 generated more than $ 100,000 (approximately Rs. 72.5 lac.).

But he added: “Spotify does not pay artists or songwriters directly. Instead, Spotify pays rights holders … Once that revenue leaves Spotify, how much will be paid to a artist or songwriter depending on their agreements. with rightholders. “

In fact, performers signed to major labels typically take only 20 percent of that revenue, and may need to split the rest between band members and managers.

This means that many of these 13,400 artists can earn only about $ 10,000 (approximately Rs. 7.2 lacquers) a year – and only if they have paid off their initial debts to labels.

A study by the French Center National de la Musique recently found that 10 percent of all revenue from Spotify and Deezer is generated by just 10 megastars at the very top.


In recent months, musicians around the world have been increasingly voting for their finances as labels have announced record streaming profits, while all but the best artists are struggling to make a living.

There were protests in front of Spotify offices in several cities around the world on Monday as part of the Spotify Union of Musicians and Allied Labor Justice campaign.

“Spotify has failed to meet any of our requirements. The company has consistently blamed others for the systems it built itself, from which it created its estimate of nearly $ 70 billion (approximately 5,088,000 kroner),” the union said. in a statement to the American music magazine Pitchfork.

The campaigns asked for information about Spotify’s contracts with major labels and whether money was needed for other aspects, such as a playlist of certain songs.

The company’s new website rejected requests for stream payments, saying it now has more than 550,000 songs with more than a million streams. Instead, he bases the payments on the artist’s share of the total.

Spotify also said they are skeptical of adopting a user-oriented model in which each subscriber’s monthly fee – typically around $ 10 (approximately Rs. 73) – goes only to the artists they transmit, instead of in one big pot, which is shared based on global plays.

“We are ready to move to a consumer-oriented model if artists, songwriters and rights holders want to do that,” it said. “However, Spotify cannot make that decision on its own – it requires widespread industry alignment to implement this change.”

Studies show that the consumer-oriented model may have only a small difference for lower-level musicians, but campaign participants say it’s better than nothing, it will encourage greater investment in niche genres and inherently is fairer. They accuse the big labels of blocking the move.

Soundcloud became the first streaming service to be introduced consumer payments this month, but only for 100,000 independent artists who provide money directly through his site.

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