To put it bluntly, Spotify has found a way to keep more of the revenue they earn (per stream) in their pockets.
So, two years later, with Spotify finally reporting growing revenue, have these numbers changed? Not even close. The company is basing a lot of its data on payouts reported under Section 115 of US Copyright Law.Īudiam stated then, “However, the impact on the artists, songwriters, labels and music publishers is a bizarre, unexpected anti-intuitive equation that seems to subscribe to Newton’s third law of physics: ‘For every action, there is an equal and opposite reaction.’ “In this case, as more money is made from the music, music creators and copyright holders are making less.” Audiam is a reproduction rights organization headed by Jeff Price, and recently purchased by Canadian rights group SOCAN. Two years ago, a report published by Audiam found that as Spotify’s revenues went up, artists and label royalties went down. But why is this happening? Let’s rewind a bit. Musicians and labels on the service have felt the crunch. In other words, 1,000 streams on Spotify two years ago - when the platform was making less gross revenue - made rights holders more money than 1,000 streams today.
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