Spotify reveals payscale amid artists row
AFP · 4 Dec 2013, 08:43
Published: 04 Dec 2013 08:43 GMT+01:00
- Spotify money spat sparks lawsuit threat (18 Oct 13)
- Spotify rejects Radiohead frontman rebuke (15 Jul 13)
- Spotify snags Swedish music app Tunigo (03 May 13)
On a new site aimed at artists, spotifyartists.com, the company defends its business model against a raft of recent accusations, including from Radiohead frontman Thom Yorke, that streaming sites of its ilk leave singers high and dry.
In its first attempt to fight the criticism, Spotify said it paid an average "per-stream" payout of between $0.006 and $0.0084, though it cautioned that royalties depended greatly on where the music was produced or listened to. Spotify said holders of rights included the artist, but could also bring in producers, managers and a record label.
"The precise division between these types of rights holders varies by territory in accordance with local laws and negotiated agreements," it said.
In other words, if a hit by a US singer is listened to one million times, the artists will receive about $1,500, Spotify said.
But the company insisted the numbers told only part of the story.
"Although much public discussion of Spotify has speculated about such a rate, our payouts for individual artists have grown tremendously over time as a result of our user growth, and they will continue to do so," the company said.
Created in 2006 by two Swedes, Spotify has yet to make a profit, unlike its US rival Pandora. In 2012, the company said it lost 58.7 million euros, on sales of 434.7 million euros ($594 million).
In July, Thom Yorke pulled his solo work from Spotify. Radiohead producer and Yorke collaborator Nigel Godrich tweeted at the time that web-streaming was "an equation that just doesn't work."