Thom Yorke and other musicians have pulled their music from Spotify, claiming the service’s low royalties hurt smaller musicians. The ideal tradeoff between total musician revenue vs distribution of that revenue (all going to the top or more widely distributed?) vs listener access is unclear. But before vilifying Spotify, consider these points:
January 17, 2014
Do music services like Spotify hurt musicians?Posted by W. Jerome under Uncategorized
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-The average “premium” subscription customer in the U.S. was worth about $16 a year to one record company, while the average buyer of digital downloads or physical music was worth about $14.
-$14 worth of a cd purchase goes to ONE artist, while $16 worth of streaming goes to TONS of artists (spreading the revenue out more evenly).
-Streaming services allow artists to distribute their music without as much need for a middleman record company.
-It takes 34 months on average for a pop/rock group to make more money streaming than physical sales. Artists that have music that don’t have high repeatability don’t like this. This also puts a big emphasis on increased marketing to maintain music “relevance.”