At $0.99/month, most albums pay a flat $0.99 for the first 1000 streams.
At $1.99/month, most CDs pay 1-3 cents/stream.
At $2.99/month, most tracks get paid on the spot 100-500 streams, which is more than half the cost of each of their monthly costs.
At $4.99/month, most streams are only $1.99 a song, which is also the max that Spotify charges for new songs.
So, at $4.99/month, they are more than $2/stream less than they should be.
Why the discrepancy?
I don’t know the answer to this question (we don’t have access to Spotify’s revenue figures). But I do know that I would be spending $2 to stream an album, yet paying less than half as much at Spotify.
Is it my fault that you are paying more for Spotify? Is it the other way around?
Probably not. Spotify’s revenue is split 50/50: 50% goes to the artists, and 50% goes to Spotify. If either side is unhappy, both parties are free of charge to take their complaints to Spotify. So, it seems that the reason Spotify charges so much per minute is because of poor management in other places.
So, in my opinion, the music industry is being played for a sucker. So, let’s get rid of it!
Why this article?
This post is part of my monthly Spotify reviews:
I thought this might just be about the most interesting and fascinating part of music on Spotify. So, if it helps, here’s the links to the other articles that I’ve written:
The Music Industry is Not for Whom the Listener Pays Much If You’re an Independent Artist
How Spotify Exploits Music Customers with Promising, New Albums
How Spotify Exploits Musicians with Their ‘Albums’
How Spotify Exploits Music Customers with Their ‘Alleged’ Paid Up Artists
The Biggest Secret Behind Spotify’s High Paid Artists
Here’s the list of my top artists so far:
Giannis Antetokounmpo (Atlanta Hawks, Bucks)
Kurt Angle (UFC, UFC 2)
Kevin Durant (NBA, NBA 2K14)
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