Spotify demonetizes all tracks under 1k streams
djmag.com
djmag.com
E.g. App Store requires you to earn $100 equivalent to pay out earnings in Colombia. In many countries the threshold is currently $0.02, but it used to be much higher.
https://developer.apple.com/help/app-store-connect/reference...
Wouldn’t it be more desirable to pay artists for everything? The implied comparison is with the status quo, and both Spotify’s and your proposals frankly kinda suck
I don't think it's reasonable to expect to get "peanuts" paid out. Google AdSense is the same; you have to earn at least $100 to get it paid out, until then the earnings just accumulate in your account. Same goes for YouTube. I don't see it as unreasonable.
To be honest, I wouldn't care as a creator/a seller, unless the threshold is set high.
There are no free payment transfer mechanisms. Whatever is free is a loss leader.
If you don’t know anything about payments, start by reading stripe.com’s documentation to understand how complex this is.
Pymnts.com is the industry blog if you want to go deep.
Of course, they don't need to base their threshold on worries about spam/fraud/etc, because they have another hammer for that -> the $99/yr. developer programme.
[1] https://developer.apple.com/help/app-store-connect/reference...
You're dealing with a bunch of people who will try to rip you off, so you need to have anti-fraud protections. Then you need to be able to override the anti-fraud protections because Alex, Alex and Bob, Alex, Bob, and Curt, etc. are all legit performers who want the payments to go to one common bank account even though you'd like one act == one bank account. Etc.
I'm not sure what's the problem here, to be honest. Alternativelly the platform could also charge withdrawal fees, making small withdrawals pointless.
Afaik this minimum withdrawal concept has been the standard way of doing business when reselling digital goods. See e.g. the aforementioned AdSense which has been set up this way for 20 years now. The same goes for Steam, once again you have to sell $100 worth of stuff to get paid.
What would you change about contract legislation to prevent this?
If you give me a free taste of ice cream, that doesn't mean I'm stealing from the farmer.
> manufacturer not being paid for the first 1,000 candy bars sold at a grocery store
This happens, in any case. People set up deals with grocery stores for 100k units. The store changes its mind. You're left with a huge inventory to either sell to them at a discount or find a new buyer.
I did end up seeing royalty checks, though not until the book was translated from English to Italian. For some reason, it sold comparatively well in Italian, pushing me over the threshold to earn royalities. The one actual royalty check I saw for my book was a grand total of $0.02. I never cashed the check and keep it in a desk drawer somewhere.
I listen to a lot of music on Spotify. And some of it is from smaller indie artists. Not a huge amount, but I’ve definitely listened to songs that are in that <1000 plays category, and for some undiscovered artists that’s a good amount of their library.
It surprises me how much of my Spotify library is no longer available. There’s at least a few dozen songs in my Spotify library that have been taken off the platform. It shows up in the list greyed out. A lot of good songs too.
As much as I love Spotify and music streaming, it seems like the economics of it fundamentally doesn’t work and can’t work.
ansc's number was $4 per thousand plays.
Your number is $3 per thousand plays.
It sounds like you basically agree with ansc. While Spotify might be cheap, that cheapness is not the problem Snoop is having.
You say: $450 / 150,000 = $0.003 per streamed track.
The two sets of numbers don't seem so far apart that the discrepancy cannot be explained by rounding errors.
A very rough global average per-stream payout is often estimated at around $0.003 to $0.005. That brings the payout for 1 billion streams between $3,000,000 and $5,000,000. Let's go with the lower end. This is actual money paid out by Spotify for 1 billion streams, as in, a bank transfer of $3,000,000.
How do you get from there to $45,000?
- As with any legacy artist, the record label gets most (maybe 70%). Why that is, oh well. It's less shocking if you think of the label as an employer and how little an average employee gets compared to what they produce. Do you need an employer? Absolutely not. Do you need a record label? Absolutely not. Anyway, a 70% cut would leave the artist with $900,000.
- Expenses: There are various costs associated with producing, distributing, and promoting music, hotel costs. Let your imagination run wild. Safe to say: This is a black hole, depending on how you want the process to look. If Snoop wants to sit in a big studio for months, he pays prices, for month, but that's not required to make music. Renting a high end studio on end is lifestyle. Sure, it's an expense, but it's like complaining about your profit while driving a Porsche. Awkward. Let's assume a 20% deduction here, reducing the revenue to $720,000.
- Focus on Publishing Royalties: Publishing royalties are just one part of the total royalties an artist earns. So there's quite a bit of double accounting going on if you want to pretend that the above costs are all deducted from your Spotify income.
If we assume publishing royalties make up only 10% of the total, that brings the figure down to $72,000.
- tldr: Snoop is living the big life, confused about money, and then proceeds to confuse others about money.
[1] https://economictimes.indiatimes.com/news/international/us/s...
The business has changed since streaming and self publishing but the labels took bets on artists and gave them expensive recording studios and marketing dollars, gave them some basic money, and in return took the majority of rights to the first few albums.
They also knew that if the artist truly made it big they would likely go to a different label where they could get better terms or start their own where they’d keep all the money after the initial contract which drove their side higher.
The record label model clearly doesn’t work as well in modern days but it was successful for good reasons at the time it really flourished.
Or just buy it on bandcamp friday and give it all to the artists :)
This probably has more to do with publishers and licensing contracts than artists pulling their music off from platforms. Sometimes even bigger artists' albums disappear when publisher is sold or goes out from the business. Or the licensing contract's period runs out. As sad it is, many artists don't own the rights to their music, and if the rights owner is defunct, then there are missing albums or even discographies.
Spotify for instance had some Spotify exclusive “DJ mixes” that were all an hour of well-mixed playlists. Spotify got artists to curate them and would have “XYZ’s DJ Mix”. They were perfect for seamless music listening at the gym. No breaks between songs. Non stop music. I listened to them all the time.
But one day a few months ago they all just vanished. Every one. I had added several to my Spotify library. For a bit they were playlists of grayed out songs. And then the playlists themselves vanished too. This content was all Spotify exclusive- the music is just gone now. It’s not available elsewhere.
It was all “mixed” versions of songs with smooth transitions in an out. Luckily I had added most of the original songs to other Spotify playlists that I had. But still, the mixes themselves are gone.
https://music.apple.com/us/curator/apple-music-dj-mixes/1441...
If you had pirated or ripped those mixes off Spotify, you'd still have them. And you probably paid enough months of subscription to feel okay with that.
Because in the end https://xkcd.com/488/
Just looked into deleting my Spotify account through the app and appears that’s not an (obvious?) option. Ugh
definitely possible to avoid this, but given it would be a follow-up cost from the failing core business, it probably could not be done. hell, they didn't even get around to making basic meta-data reliably present.
This is an artefact of the industry and not something they have much control over. Labels for larger artists just don't just sell global streaming rights in perpetuity. They will carve it up by region and time in order to try and maximize profit.
I remember this being particularly infuriating with movie soundtracks or other compilations, where individual tracks would often evaporate one day for bogus (licensing) reasons.
> And some artists, like Neil Young, actually pulled most of their content.
Yeah, I actually left Spotify with Neil. Apparently though he and other artists like Joni Mitchell that left at the time are now back on the service as of a few weeks ago.
I do have YouTube Music for listening to stuff I don't own yet, but primarily I use Jellyfin these days for music.
My understanding is they’re playing a cat-and-mouse game with auto generated content, that syphons away some percentage of the royalties.
So, like all the rest of them?
Not to mention people can set up labels themselves, it's just a company like any other.
I'm sure we don't want big labels being gatekeepers. They have their own set of problems, and make streaming even more difficult for everyone but very large artists/groups (and sometimes even for those, as they eat a big chunk of royalties).
Also, what is Spotify going to do with these 50$? What if it happens twice, 100$... do they pay you back eventually? Perpetually free access to all their premium services?
And if you have made 200 songs (so loss of $100), all streaming less than 1K each, maybe your current production is not marketable on Spotify, and yeah, maybe you should find another venue. Eventually there will be a marketplace for this type of production, and hopefully willing users to pay for it.
Changing it to splitting out a users monthly payment to what they're actually listening to, would make the abuse they're trying to stop easier and not harder (as it would mean all the money they're trying to launder will go to the correct artist instead of just some of it)
Not saying that that's a good argument for the current system, but it wouldn't fix the issue they're trying to solve
I don't think any subscriber (i.e. people giving them money) would prefer current model over where your money goes directly to who you listen.
500 Euros via Bandcamp (digital, physical and merch)
300 Euros selling merch on gigs
2000 Euros playing gigs
20 Cents on Spotify
There is no monetary reason to be on spotify, the only reason we are on there is because fans asked.Even people who have Spotify end up buying stuff in Bandcamp, anyway. I never had merch but had CDs, and sometimes people would buy two physical copies, one to gift.
For me there was never any difference between Spotify and piracy.
I also buy the music I listen to a fair bit on Bandcamp or at concerts.
As an example, last fall a song from a band came up in the randomized post-album "radio" on Spotify as I was driving, and I added the band to my favorites. A month ago Spotify notified me the band was playing in town, so I went and ended up buying several CDs, including from the warmup band as well.
That said, I agree that Spotify should pay more to small artists. I really dislike that my money goes to Talor Swift and similar artists who have more than enough and that neither I nor my SO listen to.
I think I should have said that Spotify is the same as piracy from an artists POV.
It's definitely not illegal for users, and it definitely helps with "exposure", but it's not really a platform for making real money with your music, except when it's listened to in massive quantities.
For me, it's no different than putting a free album link in Instagram, or when Nine Inch Nails put it on PirateBay as a stunt...
I might not "enjoy" it as one would traditionally enjoy listening to music, but I enjoy that it exists and the uniqueness of the experience it provides.
If you can handle LAMC by Tool, you can handle this.
'kabelbrand' is giving me flashbacks to Providence by King Crimson, just a bit more raw and industrial. All build-up without the instruments actually synchronising together for the payoff as per Providence.
The band name is great; apt.
always good to have more options though!
Not exactly what I have in mind. I am working with the model where all songs are always available (like Spotify) and people simply choose how (a) how much they want to give per month and (b) how to split this amount among their preferred artists.
In effect, it's the same as a "pay as you want", but there is no overhead of thinking about which songs to "buy".
People don't go to indie concerts because of a spotify track. Nor to big name concerts. And 20 cents corresponds to around 50 to 100 plays according to the numbers mentioned here.
Do you have numbers behind this claim?
I definitely got aware of some unknown artists thanks to Spotify and YouTube, some of them had low hundreds views/listens.
Ended up supporting them, going to concerts and buying merch.
Unfortunately more like 5000+ plays. People tend go to concerts of music they listen to and for a lot of people that means hearing it on Spotify
> People don't go to indie concerts because of a spotify track.
Yes they do.
The first requires committing time and effort to get 50 people to see you, 20 of which are your personal friends. The second is making the music you have already produced available to millions of people around the world, with virtually no effort.
Surely Spotify should improve on compensating artists, but all-in-all it is still a better deal for the artist than the "for exposure" gig at the local bar.
Spotify can't give you these experiences no matter how hard they try so this claim doesn't make much sense to me. A concert isn't exactly competing with streaming services or anything.
Next?
Anecdotically I've attended multiple gigs for artists I discovered via Spotify.
While it does, note that paying or doing stuff free "for exposure" is exactly how many artists got big and huge hits were made, from payola to DJs (starting way earlier than Alan Freed with radio DJs, and going all the way to EDM DJs being paid to break a track), all the way to paying for artist ads or record shop placement, buying fake streams, followers, and views to appear more popular and drive exposure, or doing for free (or, often, paying for) the support spot on a bigger band's concert.
1. They saw our sticker/poster and thought the name is interesting
2. They checked the venue/festival-site and thought it sounded interesting
3. They knew us from social media
Exactly zero times I had someone tell me the found us on spotify and came because of that. Of course that doesn't mean no such people exist, my sample size might be too small. There might also be people who find us on spotify and then buy on bandcamp, no way to check on that.
But my feeling right now is that our more traditional boots on the ground marketing does a lot more than the online stuff. That doesn't mean that dynamic can be totally different for other bands or other genres tho.
All the music I buy and pirate is in FLAC and funneled into my local library, where I can enjoy it without any streaming service taking it away from me.
And I usually end up contributing more to my favorite artists financials than fans who use streaming service, so that's a bonus.
a) Spotify doesn't charge enough for a subscription
b) Spotify takes too big of a cut right now from the subscription revenue
c) The model doesn't work as a lot of people from low-income (and low subscription cost) countries are "sucking out" the money that goes mainly from rich ones. So 1 listen from USA = 1 listen from India even though the USA listener pays around 7-8x times more and the subscription income gets divided equally by listens.
What's better for music as a whole? Boosting Spotify's share price and Taylor Swift's private jet habit? Or putting that $11/month towards some gigs for an artist you really like?
Reminds me of allofmp3.com before the WTO asked Russia to kill it if they wanted to join.
Very shady at best.
I don’t know if YouTube is any better, but I have switched all of my music consumption to youtube music app with the premium subscription.
But it's not for everyone ig...
a1) on my computer, in folders. I manage it using iTunes/Music, but could just as well use anything else, or do it manually. I also have Serato for DJing, which imports my iTunes/Music library xml to share the same collection.
a2) to be fair, in the past year, I've gotten lazy and started streaming from the band camp app for more recent purchases. I'm not DJing much these days.
b) I buy phones with a lot of storage and don't upgrade very often
It's great that BC still does BC Fridays... but if fans only buy music from BC on BC Fridays, BC will lose all revenue and will fold or resort to shitty tactics. BC are one of the few "good" businesses in this space, and have reached an impressive scale. I'd hate to see them fold. I reckon it's worth buying some music on normal days as well as BC Fridays.
I too fear the recent change of ownership will bring on changes in business model. But I live in hope that it wont, because it doesn’t need to.
And if they removed BCFs or took a small cut I wouldn't stop buying from them either.
Where do you get these FLACs? Do you have a pipeline/automated system or it’s done manually? Asking for a friend.
Same goes for live recordings, remixes and radio sessions. P2P has had this for 20+ years, Spotify doesn't and never will.
Being in print or not makes no difference
This isn't an excuse for Spotify not paying much for plays, but I bet having music on spotify helps the gig revenue though.
In some ways this is also true for Taylor Swift et al - they also make thousands times the amount from playing gigs than 'selling' albums, streaming, and radio plays but that drives ticket sales.
Popular: Gigs pay you.
Taylor Swift: Governments pay you millions of dollars for regional exclusivity. (essentially, play 2 - 3 concerts instead of 10+)
https://www.theguardian.com/music/2024/mar/05/taylor-swift-s...
While some artists are so big that governments compete to have you come to their country (and NOT to your neighbours), the vast majority has trouble even getting to play free gigs.
Bandcamp isn't perfect, but it fits well with my listening habits and I'm glad it earns _some_ money for you in the grand scheme of things.
https://damiancowell.bandcamp.com/album/only-the-shit-you-lo...
you can get the "free" synced multi episode animated web comic from youtube:
https://www.youtube.com/playlist?list=PLkRxIMJ3GpPH_NurdvJLL...
Talking of Aussie bands: https://drunkmums.bandcamp.com/album/beer-baby and https://3pod.bandcamp.com/album/middleborough-rd
I listen to most music on yt music (although their client sucks) and buy stuff on bandcamp whenever i love some band and it's available there. I've never seen a value in spotify - limited library with no ability to fill the gaps with custom files (like you can do on YT music), client is meh, additional cost or ads are meh too.
It's already happening. Even some artists which are above the limit pull out to show their support for smaller artists.
As infuriating as this is, it's the reason I still use Spotify. A music service that hides their catalog changes by subtly modifying my playlists is a no-go. Having the songs still appear lets me know, as it gives me the opportunity to find those songs elsewhere.
These days there's a lot of worth in that, the bars been set quite low.
1k is a relatively low number to hit at least they didn't set the demonizations level the same as other platforms.
A lot of smaller artists don't have a say regarding licensing and distribution. They're usually managed by a local minor label, which in turn has specific agreements with bigger players (Columbia, UMG) once your music sells more than, let's say 50.000 copies and they need a partner to publish a release on more territories. A few artists also get their own label.
For example, Peggy Gou tracks are usually released trough Dudu Records (Her own label) -> Ninja Tune -> XL Recordings, which is basically the same label that nowadays publishes Adele and Radiohead. Adele went even a step further, and her music is handled by Columbia Records for the US market.
Until you reach this level of clout, you have very little direct control over your syncs and streaming rights in the "regular", Billboard-tracked, market.
It's the same dynamic companies use against ununionized labor.
Most bands can't do this. They're not full time musicians, many have a day job. The ones that can are likely to come from rich families where they get time and money to pursue their passions, insteas of going to college and getting a job.
Lana Del Ray, Grimes and Billy Eilish are some of the biggest artists of the 2010s, all of them grew up rich and connected.
They send me a monthly email detailing the number of plays I received as an artist, and it averages around 300.
So each track is getting around 10 plays per month.
So none of them come anywhere close to the minimum threshold.
I made around $10/year from Spotify plays, it's a pittance, but over all the streaming platforms I would get enough for a new plugin each year, this makes it "worthwhile".
I absolutely will not allow Spotify to have content on their platform without reimbursement.
The only people losing from this are the handful of fans who like my music.
Sounds like you're well over that, at around 3-4K plays per year.
On the other hand, that would make it pretty trivial for garbage/AI content distributors to circumvent.
Spotify doesn't have an answer for this. Just don't listen to things outside the Spotify library. Apple Music (and GPM before it) lets me upload my own tracks and sync them between my devices.
It might, but then there's this:
(1) they're not making money already anyway (they'd be getting like $3 for 1000 streams before)
(2) that's were the listeners are (not the listeners they have, since they don't have many to begin with, but the ones they wish to attract)
(3) most of such a low number as 1000 streams are usually themselves, band members, friends, and family, plus whoever they sent a link to and gave it a short listen before moving on.
If they have issues with people abusing the revenue model by publishing white noise and generating fake plays - go after that.
However the 1K streams per track thing is going to negatively impact small artists who might have relatively large collections, but few over 1K annual streams.
If it's a processing cost issue then make it so that payouts need to meet some reasonable minimum threshold.
> between $1 and $2 will be added to monthly bills for customers in several territories, including the UK, Australia, and Pakistan, Bloomburg reports. This is said to cover the cost of audiobooks, added to the platform late-2023. More recently, video learning content was introduced to further diversify the offering.
I don't want, and never wanted, Audiobooks or Podcasts or News or other crap on the music app.
They mention that there will be another tier added which doesn't have these -- great, so long as it keeps the audio quality for music at the same level, and doesn't have ads.
Regarding Spotify, which I use daily, I also dislike their updates. I remember some months back I could disable/hide "Recommendations". Now in all my (personal & private) playlists I get a list of Recommendations. It's an annoyance because when I scroll fast to reach the bottom "to listen to that one song" it end up surfing the Recommendations (did I mention I dislike them?).
So, it makes me want to go to apkpure, find an apk from 2020 and use THAT (slim chance it'll work) because most updates are "to increase engagement" (pester you/me/all) with 'new and exciting content!!!' (bleh)
Sidenote: for podcasts I am using a 2021 version of the Podcast Addict (the one displaying the full screen ad)(which you can block with NoRoot Firewall)
I can then click a tiny 3 dots menu, click “stop showing me this” and “I don’t want to see sponsored content” and it will say “sure thing! We will no longer show you these” and the next day it will show me a new advertisement and I repeat the process.
So annoying. The whole premise of premium is that there are no ads! But now I’m constantly getting visual ads in the app. Every artists page has ads for their merch. Spotify notifies me about exclusive merch for artists I listen to. And is constantly trying to get me to go to concerts of artists I listen to.
I believe that using an Android phone without a Firewall must be a horrible experience/it increases the positive experience by A LOT.
It also helps to see which apps are sneaky and run on their own - even if you disable the 'background run' (e.g. TuneIn Radio starts itself bypassing battery/power settings)
The worst is Facebook (I have friends and family who don't use any other mode for regular contact), where it often behaves as if the ideal way to engage me is, in order of appearance on the timeline:
• "People you may know" (usually devoid of people I've ever even met, and when I do know them they're not people I'm going to add)
• One real post
• A suggestion of a corporation or group to follow
• An advert for something I'm not even capable of getting ("Are you an American living in the UK who wants to renounce their citizenship for tax purposes?" — no on all counts)
• Three more suggestions of a corporation or group to follow
• More ads for things even less relevant than the email spam I got in 1998
--
Even YouTube, where I can recognise the value by comparing what I see when I'm logged in to not logged in, the recommendations are still only 50% useful and 50% dross. (Not logged in it's 98% dross, and yes I did just count 50 items before finding one video I might watch in order to not be a statistic made up on the spot).
I’ve noticed this in restaurants too, they just change the price like a normal business in an inflationary environment.
I bet you get raises too, or ask for them and move on if you don’t get them.
Edit: Actually I see now, you're replying to where I said they bought services and raised prices without the customer consent. If we're using a restaurant comparison, it'd be like your local burger shop raising prices because your meal comes bundled with discounted carwashes. Consumers generally don't want bundles, they want to buy the thing they're interested in.
They have been able to buy the individual song for $1 to $2 for a long time.
Building podcasts or audiobooks or even other services is just a business decision. It’s like cable/satellite TV used to be. The market will figure out where to settle.
A company offering an entertainment service is hardly forcing anyone to do anything.
Ever gotten a car wash from a gas pump?
If you don’t like it there’s plenty of restaurants that don’t do combos. And plenty of gas stations that don’t have car washing.
I have a much better listening and discovery experience through Roon and artists get paid more with Tidal.
All the others don't have clients for my OS and I don't have DRM in my browser which they require.
That said you sound like a Meridian shill.
Spotify's entire promise was "we solve the music inequality problem by just pooling all subscriber money together and then we do an equal(-ish, record labels iirc got slightly different deals) split depending on how many people listen to your music." It kinda sells the idea that if you're just popular enough, you can make it big on Spotify. Of course practically that's been a lie for ages (numbers showcased that only the top 0.1% could afford to live off of Spotify alone, and all those songs are owned by the established record companies anyway), so you could say this is just dispensing with the charade to avoid transaction costs.
I do wonder about the ripple effect this could cause for indie artists; Spotify just told them to go fuck themselves and there's pretty much no incentive to use Spotify anymore now that they pulled this stunt.
If you want to support artists directly, it's still always better to just buy the albums. Most of them have Bandcamp pages and for now, Bandcamp provides a good deal (and as a customer you can just download the FLAC files).
Looks a lot like abuse of market position.
Even if a very prolific artist has 200 songs, averaging 500 plays per year, this would only ever amount to $500 per year. It is not peanuts for a hobby musician, but it would represent an unusually productive artist who happens to be just under this limit with most (or all) their songs, and also who manages to somehow get paid in the upper parts of the span.
If YouTube, Spotify, Apple, Tidal, Deezer, Soundcloud, and Amazon all adopt this practice, taking your edge-case artist, they're out of pocket for $3,500 per year.
That makes a situation where the more highly concentrated Spotify's monopoly is, and the less productive an artist is, the fairer the outcome for that small artist. Meanwhile the $3,500 is distributed between the monopolist, and the very large artists on the service. That's a quite uniquely perverse set of economic outcomes.
they don't even have a business model
the whole thing is a massive scam that devalues music just to earn some VCs a big payout
it's like if I said I was going to "disrupt the supermarket industry" by giving away free food
Please don't give investors any ideas...
There's a current TV commercial showing real customers' reactions to a promotional pop-up sample-tasting booth set up in a grocery store with all the little half-ounce cups for customers to try for themselves and see if they like it. These are sometimes like a marketing study for new products or variations.
Now in each little cup is a toothpick sticking up from a rolled-up dollar bill, like it was a piece of artisan cheese or something.
It's a commercial that candidly filmed a live promotion for a cashback app.
Even then the customers were mostly hesitant.
Financialization of businesses has unmoored it even further from capitalism. You can be a billionnaire without ever turning a profit, as long as you can convince investors that the real money in a music streaming is acshually going to come from podcasts.
See my comment about Qobuz on another post:
In some sense, premium Spotify users pay also for the free users and, therefore, the average is lower (yes, there is ads income but I bet is negligible).
Pretty much all platforms have some kind of soft threshold before paying.
This is actually very common in real world as well, e.g. in sales you don't get commissions if you don't meet certain thresholds too.
And even so, it's so little money and little overhead, just do it for the goodwill.
For Spotify otoh, these few bucks add up to a long-tail loss of an increasing and disturbing magnitude. Additionally, bad actors are in fact exploiting it, ruining the experience for me as a musician and as a user. The issue, if any, is that in all fairness we should all be making money, proportionally, from the platform. But under 1000 streams, as an artist, you are probably getting more value from having your work uploaded and streamable.
This is highly dependent on your distributor. It can be as little as $10.
>> Spotify is not (or barely) making money out of our work, but we otoh are "making money" by using its platform and visibility as means to reaching to our small fan base that will finance our work through concerts.
This is an odd way to look at it. Without music, Spotify doesn’t exist. People subscribe to Spotify and listen to their ads in exchange for unlimited music access. So Spotify is making money from your music.
Spotify has expenses too and is hosting and streaming our music, distributing and maintaining an app and api for access, all basically for free for the musician. So "making money from your music" from my 800 streams a year is a very optimistic view of how the whole thing works out, I'd say we are cooperating fairly.
not really: https://www.statista.com/chart/26773/profitability-developme...
> Since the beginning of 2017, the streaming service has generated a positive net balance in eight quarters, two of them in 2021.
For an individual artist it’s not much. For Spotify it’s huge, all of those nickels and dimes add up quickly.
It also doesn’t matter if their current plan is to redistribute 100% of the gains to other artists, since this becomes profit they didn’t need to sacrifice to appease big acts. I.e. small artists pay so Spotify doesn’t have to.
Most importantly the artists didn’t sign up for this arrangement when they first joined Spotify, but now due to Spotify’s size they may feel compelled to give away their work for free for the chance at being successful or keeping fans happy.
Next step would be explaining why artists with the same amount of streams (but different labels) have wildly different payouts.
https://www.theverge.com/2024/1/17/24041343/eu-music-streami...
EDIT: as it’s been pointed out, the article doesn’t mention a time, which is a speculation on my part
Sounds pretty early stage
It would also make the economics of streaming viable for the majority of artists rather than the small pool of folk raking in the bulk of the money.
revenue * 0.7 = total payout total payout / no. of streams = payout per stream payout per stream * streams of an artist = payout for artist
In the proposed system you'd have to calculate the payout per stream on a per-account basis and have additional complexities like how to handle family accounts etc.
b) As I said, the effect for the vast majority of artists would be quite the opposite of negligible.
If people could decide how their money would get split up, they couldn't give Harry and Meghan $25m, let alone Joe Rogan $250m.
I was at a gig for a moderately successful band recently and they said rather loudly they were bastards and buy one of their CDs instead even if you never play it because they need to eat.
They could try making music people actually want to listen to. If they can‘t, that career may not be for them.
But the article makes it sound like this was not a factor?
Some generative stuff will be more discernible than others.
The ones that don't even try to emulate the full experience of having a real artist involved will have a lot less friction.
And it's not like you're going to have a small niche audience that settles for artificial music, no there will be a niche that prefers it.
The size of that niche right now has nowhere to go but up.
I guess at some point there will be a popular "musician" who is relieved to be an algorithm, and we'll see what happens.
One would need to be an artist with a lot of songs just under 1k to make it more than enough for a cup of coffee. The kind of money it isn't even worth the time putting songs on Spotify (it may be worth it for promotion though).
The general issue with underpaid artists remains but this particular case doesn't seem to matter much, in fact, if what they imply is true, it is arguably an improvement since what they save in processing fees will go to artists instead of banks.
I once commissioned a Mother's Day song from him -- sent him 10 facts about my Mom and our family and he came back a few days later with a funny and charming little tune. Best $30 I've ever spent.
[1] https://www.nytimes.com/2024/03/31/magazine/spotify-matt-far...
I find it hard to see how this decision would impact small artists to be honest. Maybe if an artist had thousands of tracks all with ~500 streams then it might impact them, but I'm guessing small artists who are currently monetised are making almost nothing anyway from their handful of songs with under <1,000 streams – assuming they only have 2-3 albums worth of music.
Supporting monetisation on all songs is probably more headache than it's worth when you're dealing with paying out a few cents. Honestly the best thing you can do to support small artists isn't stream their music, but share it with your friends, donate to them and buy their merch (assuming they have merch because many won't).
Yes, I'm aware that I'm commenting this on HN.
May not be quicker, but definitely easier for the less-skilled to pull off.
One requires a demolition mindset, the other an engineering mindset.
In some capitalist cultures there has been a tendency to value disruption as if it was the thing that added value, just because it was a noticeable component of a few high-profile bonanzas.
It's like a prevailing superstition can take hold, and a belief spreads where "if it's not disruptive, it can't be good".
The less-recognized builders who don't divert energy to disruption do have to operate with much less visibility, since there's not some established structure crumbling (usually under its own weight) that looks like a result of their efforts.
The engineering-focused creative builder that can make something out of nothing, without having to tear down anything at all, ended up hopelessly outnumbered by weaker-performing substitutes having far-less-unique qualities.
Imagine what it would be like if something capable of applying that kind of leverage to resources had access to scaling capital.
Among some classes of performers, anybody can build a viable business if they started with $1 Million, and barring undue disaster, all will grow & prosper.
Even without any failures, each one will obviously have differing performance.
I guess you could say that one who ends up with a $1 Billion operation would be so rare, might as well be a unicorn.
That's about a 1000x return one way or another.
How does that compare to someone who can build anything viable at all from basically nothing to start with?
Makes 1000x look like a small number.
Spotify gets paid for that long tail, but you do not.
In the Discovery weekly and Release Radar you often get bands I have never heard of.
Also, if someone says "Oh I like this new band xxxxx" then you can find them on Spotify and see if you like them or not.
Fron that perspective Spotify is a free service for bands to be discovered and generate more fans.
Yes I do agree that bands should get a bigger piece of the profit pile, as long as there is a profile pile
Personally, I like bying physical media. I am not cool enough to buy vinyl, I prefer cds. Finding places to buy cds is increasingly impossible
The best used to be going to shows and buying cds at the merch desk or the bands website, but more and more new bands do not even produce cds anymore. There seems to be more bands doing vinyl. I guess with the prices they charge that the markup is a lot better.
For now I try to buy digital music and burn it to cd myself. I would vastly prefer buying physical media directly.
These platforms have every incentive in the world to continue monetizing them but just cut the creator out of that monetization their work earned.
i am no artist but have been making youtube videos on and off for the past 5 years, with only one video breaking 6 figures in views. yet i never reached the threshold in the platform to monetize my content, while youtube is free to play ads on my hundreds of (non - spam/short) videos.
if not receiving a couple dollars per month for my videos is what stops me from my passion, then i need to ask myself more pressing questions.
Cancel our accounts and campaign to others to do the same.
I cancelled my Spotify account, and now I am using Tidal, which pays the artists a higher percent.
With greedy record companies as part of the structure from the beginning, looks like they are fairly consistently demonetizing themselves.
When a business depends on a resource that's so well-heeled it can truly afford to waste substantial amounts, you really hope that resource will not run out.
If the balance tips toward dependence on consumers who can not afford much waste if any, that portion could very well be subject to collapse under the strain.
As for demon-ization, looks like that's already in progress quite a bit too.
Spotify pays between $0.003 and $0.005 per stream, with a 70/30 split in favour of the rights holders, which could include the artist, the label, or others depending on the artist's contract.
The actual amount artists earn per stream on Spotify is often less than these figures due to the distribution of payments to the rights holder and the artist's agreement with them.
https://www.lalal.ai/blog/music-streaming-payouts-2023/
https://virpp.com/hello/music-streaming-payouts-comparison-a...
It may be as someone else said, that there should just be a minimum threshold for payouts. Like, you get your money after it's at least reached $10 or $100.
Demonetizing the first 1000 streams is probably not a big deal, but it still sounds a little wrong.
To misquote Bezos: Your silly policy is my buisness oppertunity.
We pay a small amount, the middlemen gets all the money, 0.01% of the artists get more than a few hundred bucks, everyone else gets nothing.
Piracy is entirely justified. We should pay the artists and stop paying these leeches. The only real value created is from the artists themselves.
I do not believe that their business model will ever do anything but fuck over the artists. It's also deeply disturbing to me that there are only a few options left for people to actually own their music and the rest is rent-seeking platforms.
* I self-host this internally, for my family and me, since 2019. One of the best designed interfaces / UX you can find.
Honestly there's an existing factory of low effort music being churned out already, AI will become part of that existing pipeline. There will be more music produced, but it won't become mainstream.
Music isn't only about music, it's about the creators and their stories as well. Anyone claiming AI will replace traditional music creation is but a functional consumer. It's the same type that exclusively drinks soylent and wears black turtlenecks to avoid having to think about things or taste anything.
Nice.
"Technology is a way of not having to experience the world" -- Max Frisch
There are donation buttons for some artist on Spotify. I guess the artist need to enable it? ("Signum Regis" is an artist that has a Donate button for example)
I actually hate that in Prime, because discovery for shows and movies is never a positive experience but a setup chore separate from consumption, and advertising stuff that isn't already paid for always makes it worse. But for music I think it could actually be enjoyable, because you can consume and browse at the same time is actually a thing. Like diving into discogs.com while listening. I could easily see myself listening to some artist's main albums as part of some standard subscription (that pays as badly as spotify?) and then shell out a single digit payment on one hundred pay-per-listen tokens for obscure B-sides from the label that the artist is signed on, or something like that. Or reimplenent radio, by offering a licensing model where what would have been single releases in the olden days are part of the ad based subscription, but album content is only available through purchase or (various?) subscriptions.
Make it a marketplace of monetization models! Perhaps the right company to try this would be someone completely unexpected like cloudflare? Being a blank slate from both consumer and licensor perspective could almost be considered a prerequisite for a project like that...
I'm generally happy to let Spotify stream whatever for background noise, but it looks like I should play some local bands manually once in a while.
https://www.macrotrends.net/stocks/charts/SPOT/spotify-techn...
And their market cap looks like this:
https://www.macrotrends.net/stocks/charts/SPOT/spotify-techn...
And your competitors are Apple/Amazon/Alphabet. And your vendors with whom you have zero negotiating power are Universal/Warner/Sony, and their whole interest in supporting a music streaming business like Spotify is to maintain leverage against Apple/Amazon/Alphabet, so music sellers only need to keep the streaming business limping along.
There is no play here without reform to copyright laws that limit copyright to 10 years.
believing is without you
you won't believe
anymore~
Malicious labels use click farms to push up the numbers on their artists, either by manipulating all platforms or locking their artist into Spotify.
This, in addition to other forms of manipulation such as playlists-aaS, isn’t just a ploy to promote their music. As long as farming clicks is cheaper that the payout rate, they can get paid for laundering illicit gains that way.
Lots of companies today only pay you out once you reach $X, usually some nominal amount. It sounds like that could be the case here.
Why deal with payment processors, billing disputes, etc for a customer only earning pennies?
Spotify doesn’t have to deal with these things. Artists work with distributors who then deal with Spotify on their behalf. The distributor pays the artist.
For me the issue here is they’ve changed the deal to the detriment of the littlest of the little guys. A company that just signed a non-exclusive $250m deal for Joe Rogans podcast, can’t afford to pay $10 a year to a whole bunch of independent artists. That’s outrageous. For me it’s the ethics of it rather than the amount.
This seems to already be the case, in practice. Spotify claims that there's about 40 million in unpaid royalties for people who can't withdrawal yet.
https://artists.spotify.com/en/blog/modernizing-our-royalty-...
What a load of manure. The only reason manipulation of royalties even works is that they pool the streams such that the consumer wont pay the artist he listens too.
Just tie the royalties to what each user listens to and what they pay. Solved. No abuse possible.
But no. Have to have an opaque algorithm and do hacks upon hacks to obscure its funamental flaws.
I think the first option is worse.
Neither option pays a fixed amount per play, so that factor doesn't favor either choice.
How big share of users play white noise on repeat really. One in 100?
You can't just say "in order to improve your experience we've decided to stop paying you" and expect people to trust your motives.
You also aren't even addressing one of the issues here, which is functionally "listen-time" related fraud on Spotify, but simple solutions don't really work, since yt has the same issue in reverse.
As a general rule, if you think something like "No abuse possible.", you are unfamiliar with the problem space.
Ok. The gains for the abuse is capped at the subscription fee minus Spotifys fees, per account.
The gains from a lot of the abuse vectors they've mention are either ad-fraud related (your suggestions don't help), or are ways you steal from other creators by taking a larger than intended share. That is true whether the pool is $N,000,000 dollars statically, or a larger fraction than intended of 10000 $2 pools per user.
The other alternative is a pay-per-listen business model, but this kills the company.
My suggestion would however work, if ad money were distributed for plays proportional to how paying users listen, as long as Spotify's fee is larger than the ads share of revenue. I.e. each paying user don't "decide" more than a dollar of royalties per dollar paid.
https://www.musicbusinessworldwide.com/great-big-spotify-sca...
They argue a guy in Bulgaria set up 1200 premium accounts. However, they don't have proof.
Yes, you still run into the issue where 30 second whale songs get a larger than intended share of the royalties from whale-song-listening users.
I'm not sure where the disconnect is here.
That’s not how Spotify works. Instead a lot of it goes to Taylor Swift, who I don’t listen to.
Some some barber shop is playing drake 24/7 having ads and 16£ of you 17£ are going to drake because you only listened to Bob bobson 20 minutes today instead of 23 hours:59 minutes like the barber shop.
The pay model is ridiculous, every update is terrible and there is no mechanism to let the company know they are running the product into the ground. It used to be heaven for power users,now if they simplify it any more the app will just pick what it thinks you should listen to, give the money to ed sheeran regardless of what you end up listening to and not even let you pause cause an extra button might be too complicated for you.
Find a sustainable alternative now. I personally recommend bandcamp + youtube combo. Yt to explore and find new music, Bc to buy the music I enjoy and __own__ it.
Unfortunately with YT I've had to cancel my Premium subscription on - they want $34/month, and I'm not paying that.
I'll move to using third party apps/adblockers, and paying some of the creators I watch directly.
Also, I got it wrong, it's $32.99/month.
> To continue delivering great service and features, we're increasing your price to A$32.99/month.
For new music, I tend to at least give a few seconds to every new release that is of an even slightly interesting sub-genre, older stuff sometimes shows up in what people post they are listening to, but there are also listening pods (me and two others are currently doing a one album a day discography run of Necrophobic), and adopted months: March was Screamarch, where two people curated a list of Screamo and adjacent albums/eps for every day, now it’s Finlapril where a Finn curated 1-2 albums a day moving through the history of Finnish metal.
Since joining, my monthly bandcamp purchases went pretty far up, though. And I’m only buying digital albums, there are quite a few who do vinyl purchases for even higher bills.
[0] https://www.angrymetalguy.com/
[1] Vera Sola - Peacemaker https://verasola.bandcamp.com/album/peacemaker
Unfortunately such sites are increasingly rare these days.