When Bloomberg reported that Spotify would be upping the cost of its premium subscription from $9.99 to $10.99, and including 15 hours of audiobooks per month in the U.S., the change sounded like a win for songwriters and publishers. Higher subscription prices typically equate to a bump in U.S. mechanical royalties — but not this time.
By adding audiobooks into Spotify’s premium tier, the streaming service now claims it qualifies to pay a discounted “bundle” rate to songwriters for premium streams, given Spotify now has to pay licensing for both books and music from the same price tag — which will only be a dollar higher than when music was the only premium offering. Additionally, Spotify will reclassify its duo and family subscription plans as bundles as well.
weekly PSA that spotify is a dumb company who makes no money because they’re stupid.
To put it bluntly, between the artists, and the musicians, there is the publisher (the traditional music company) the money pretty much only goes to the publisher, because spotify doesn’t want to make money, nor do they want artists to make money. And the artists put their shit on spotify because people believe that spending 15 dollars a month on a service that doesnt pay artists, apparently pays artists.
Go support your local musical artists.
Spotify negotiated shit deals when they were a startup and they’ll basically forever be not profitable because of it.
they should’ve became a publisher, or started one on the side, the profit would be immense if they thought of doing that.
Seriously. They had a completely open market, then essentially signed a perpetual deal where something like 40% of gross income is paid out to the labels. It’s absolutely insane how poorly run they were in the beginning.
If they had become a publisher, distributor and/or a label, they’d be on top of the world now.
yeah pretty much. They’d be the single biggest publisher globally, and almost certainly the most profitable.