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Every day, millions of people use Spotify to stream music. A few years ago, it would've felt like an impossibility: Click, and bam — a seemingly endless catalog of recorded music opens up, right ...
Spotify, a music streaming company, has attracted significant criticism since its 2008 launch, [1] mainly over artist compensation. Unlike physical sales or downloads, which pay artists a fixed price per song or album sold, Spotify pays royalties based on the artist's "market share"—the number of streams for their songs as a proportion of total songs streamed on the service.
Liz Pelly, a journalist whose first book, “Mood Machine: The Rise of Spotify and the Costs of the Perfect Playlist,” will be published in 2025, says the streamshare system has been criticized for “benefitting the artists who generate the most streams” and “the major labels who already have, like, so much market share.”
Unlike physical or download sales, which pay a fixed price per song or album, Spotify pays artists based on their "market share" (the number of streams for their songs as a proportion of total songs streamed on the service). [31] Spotify distributes approximately 70% to rights-holders, who will then pay artists based on their agreements.
Recording artist royalties are a vital part of an artist's income and are gained through the digital and retail sale of their music along with the use of their music in streaming services, broadcasting, and in other forms of media such as TV shows and films.
Both services pay rights-holders based on the share of total streams that their artists bring in. Apple says in the letter that it pays 52% of its subscription revenue to record labels; Spotify ...
Spotify generally pays between $.003 and $.005 per stream, but how much you'll be paid differs based on your distribution contract.
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