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Home EDM News

Spotify Launches “Spotify Artists”, A Sight Explaining Their Business Model

by Ryan Railsback
December 3, 2013
in EDM News
Spotify Launches “Spotify Artists”, A Sight Explaining Their Business Model

After receiving criticism from more than a few artists Spotify launched “Spotify Artists” in hopes of proving it’s worth to everyone in doubt. In addition to the company’s business model, artists will also be able to see data for the streaming patterns of their own music. According to Spotify, once they reach 40 million paid subscribers artists will be able to make more money due to the incorporation of ways musicians can sell tickets and merchandise without the company taking a cut, as well as having access to the demographics of their followers. Director of artist services, Mark Williamson told The Guardian :

Screen Shot 2013-12-03 at 9.07.34 PM

Roughly 70% of Spotify’s total revenues go to “rightsholders” like labels and publishers who then pay the artists, which resulted in the company paying $500 million to them in 2013 alone. When comparing that to the artists pay out-a “niche indie album” bringing in around $3,300 and a “global hit album” earning $425,00, it doesn’t really add up. Spotify claims that when they reach the 40 million subscriber mark, those numbers would go up to $17,000 and $2 million.

Coming personally from a paying Spotify subscriber, they better step they’re game up if they want to stay true to their word. The only time I ever really want to use Spotify is when I’m on the go and half the time it can’t even make it through one song without cutting out, even when I have full service. So for the musician’s sake, let us hope they hit that 40 million mark sooner rather than later.

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Tags: SpotifySpotify Artists
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Ryan Railsback

Ryan Railsback

Hey everyone, I reside in the 303 and love all types of music, mainly EDM and ESPECIALLY Moombahton. If you want me to check out some tunes or just chat, you can find me Follow @RyanRailsback or ryan@moombroton.com!

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