Monday, April 1, 2013

Spotify exposed!

Spotify is an application, music streaming service, internet radio station, and a website that artists use nowadays to get their music promoted out there. All commercial and non-major independent artists alike. Spotify is a great promotion tool all across the globe.

It is reported that 5 million users of Spotify pay either $4.99 or $9.99 monthly. That is more than every one of the featured artists earns with exceptions of a select few.  A vast majority of artists only earn $0.05 cents (US dollars and Canadian dollars). While other Internet radio stations like Pandora and iTunes give artists $10,000 average (US and Canadian dollars). But there's a catch! The money doesn't go "directly" to the artists pockets. It goes to the record labels, executive producers, CEOs, promoters, owner(s) of the sound recordings, and producers. The artists will still get paid but just not as much.

Spotify has been known to unfairly compensate artists. Some musicians and artists don't feel that they are being treated fairly by the business of Spotify. Spotify pays to the record labels instead of course obviously. Artists do not receive anything in advance, receive no minimum per stream, receive no advances, and really only get a 50% share of ad revenue promoted by Spotify in public and online. Even their website.

For example, IF Pandora pays around $100,000 over the next 10 months to stream music of Robert Plant, only $43,000 will actually go directly to Robert Plant, himself as the performing artist. Just if Brandy Norwood were to use Spotify to promote her music and to promote her family business out in California.

The CEO, Dianek Ek, of Sweden, his net worth is $307 million (US and Canadian dollars.) Sean Parker gets nearly as much paid income as the CEO. Sean Parker is a member in the board of directors at Spotify. Sean Parker has associations with Napster in some way.

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