Yeah I don’t think comparing a radio station to spotify is a fair comparison. Spotify also has to cover the costs just for hosting all of that content for so many artists that may get less than a thousand streams in a year and making it available for billions of people around the world to access. Radio stations don’t shoulder that kind of a burden (or provide that benefit) and they play a lot more ads unless you pay at least $10 a month for sirius xm. Spotify probably loses money on the massive volume of artists who have uploaded their music for free just to get that visibility and give their fans that access, but don’t get streamed frequently.
The reason why most artists put their music on spotify is not because of the revenue but because of the exposure and access to new listeners who wouldn’t blind-buy their albums but may be interested in streaming to check them out (which may lead to purchasing concert tickets and/or LPs). At the end of the day, artists and labels know the terms and get to choose whether their music goes on Spotify. As @Indymisanthrope already said, Neil Young doesn’t need the exposure to get folks to buy his albums or concert tickets so there’s less value for him.
If people weren’t awful, Spotify could probably raise their per stream royalty payments, but they’ve already had issues with people trying to game the system by just endlessly looping streams of their own songs to generate revenue
(Sleepify - Wikipedia). Spotify can’t control how often billions of people will stream songs in a given month or year, whereas a radio station has total control over how many songs they play.
I feel like the fact that they don’t have high-res streaming actually works to the artists’ benefit because it encourages people to buy their physical media if they want better sound quality.
Bummer...If they all did that they’d get approximately the same amount of money given they get a percentage of a pie dependsnt on the percentage of overall streams that are their own rather than an actual set amount per stream.
Hey! This is the Hot Take thread, not the thoughtful and reasoned discussion thread!
I might be wrong, but I’m pretty sure that Spotify is the only streaming service that charges no fees to artists for hosting their music.Ok. So why do they pay the lowest fees despite being the largest company with the highest revenue? Surely the costs for the hi res providers would be higher given that they have larger files? Also the fact that they have lower percentages of the market? Yet they pay out higher fees?
Bandcamp, the only good service, doesn't charge to host.I might be wrong, but I’m pretty sure that Spotify is the only streaming service that charges no fees to artists for hosting their music.
It’s not that I love them, haha, it’s just that it seems like a pipe dream to expect a company to just single-handedly fund the music industry just because they provide mediocre-quality streaming to the widest range of people on the planet (and makes it available for free with ads). It’s not a wildly profitable company, so I don’t know why people think they should be paying a lot more per stream than their rivals who have much smaller volumes of streams that they’re paying out for. I would be surprised if there are many actual artists that make more in a year from any other streaming service.Well to be fair Eric’s 6 paragraph corporate love in is one of the hottest takes I’ve ever seen anywhere.
It’s not that I love them, haha, it’s just that it seems like a pipe dream to expect a company to just single-handedly fund the music industry just because they provide mediocre-quality streaming to the widest range of people on the planet (and makes it available for free with ads). It’s not a wildly profitable company, so I don’t know why people think they should be paying a lot more per stream than their rivals who have much smaller volumes of streams that they’re paying out for. I would be surprised if there are many actual artists that make more in a year from any other streaming service.
Like I could give Dua Lipa $10 in royalties because I had a friend over and played her record for them one time, but she’ll make a lot more than that off the fractions of pennies that Spotify pays out at the end of the day because the volume is there - I could pat myself on the back for being more generous in my support of the artist on a per stream basis, but would I be doing as much to get that music in front of as many listeners as possible or paying them as much? No.
I think the tension though is between assigning value to art and hiding it behind a paywall. Different streaming services have different ways of balancing that tension. Artists and labels can decide which services provide value to them, and they have. A lot of people are never going to pay $10 a month for a music streaming service, but they download the free ad supported version of spotify and listen to music, which drives revenue for the artists. If artists didn’t see some benefit, they wouldn’t put their music on spotify. How many artists held out from putting their catalogues on spotify until they ultimately caved because they saw the benefit and wanted to take advantage of it? So many artists take advantage of the list of their followers on spotify and utilize that to send out special deals on merch and concert tickets to their listeners, too.I don’t. There are multiple ways that artists will and have to use to make money. However, I do believe that art has an intrinsic value and that this is not even remotely shown in their model.
I also think that you give both exposure and their role in music discovery way too much credit. A study on Spotify has shown that all their algorithms and suggested follow on plays favour the larger established, already monetised artists.
That’s not to mention their role in reasserting their role of the major music label, something that wonderfully beginning to die before they emerged. The power they are able to gain and the share of online revenues that they are able to take, without the historic justification of the cost of making, storing a distribution of actual stuff, is gross and Spotify enable that.
Music has never been easier, cheaper and more accessible to record, produce and distribute and yet we’re creating this eco system that is propping up a system from an era where it requires huge resources in terms of equipment, people and production because everyone needed an actual copy of everything to listen to it when they wanted to rather than when a DJ chose to cue it.
You seem to be invested in saying that this broken model is what’s there so
They also don’t pay any royalties for streams to artists, though. It’s just a place for artists to put their music and stuff that they want to sell, which spotify also allows them to do at the bottom of their artist page.Bandcamp, the only good service, doesn't charge to host.
You were talking about how Spotify has to host all the music on its service and doesn't charge for the opportunity for exposure or whatever and that's what one its values is? I'm just saying who cares; Bandcamp hosts all that music (in several formats, which Spotify doesn't), too, and if artists are on there it's because they most likely chose to be.They also don’t pay any royalties for streams to artists, though. It’s just a place for artists to put their music and stuff that they want to sell, which spotify also allows them to do at the bottom of their artist page.
Those artists caved because it is basically the ONLY way people listen to music now. For the vast majority of artists, if you're not available on streaming services, you don't exist. Spotify has so effectively convinced people that this is shitty exploitative model is the only way it can be. It's not. (People being consumers, not artists. The artists clearly know the model is broken. A lot of fans don't want to face it!)I think the tension though is between assigning value to art and hiding it behind a paywall. Different streaming services have different ways of balancing that tension. Artists and labels can decide which services provide value to them, and they have. A lot of people are never going to pay $10 a month for a music streaming service, but they download the free ad supported version of spotify and listen to music, which drives revenue for the artists. If artists didn’t see some benefit, they wouldn’t put their music on spotify. How many artists held out from putting their catalogues on spotify until they ultimately caved because they saw the benefit and wanted to take advantage of it? So many artists take advantage of the list of their followers on spotify and utilize that to send out special deals on merch and concert tickets to their listeners, too.
I’m not sure it’s accurate to say that spotify builds any kind of “wealth.” It has billions in revenue but has been operating at a loss for years and only recently managed to turn a profit in recent months. They’re not sitting on a huge pile of cash. Where would they get the extras billions of dollars to just double the amount of royalties they pay to artists?While I agree that Neil's promotion of Amazon Music after the initial move was Extremely Uncool, I do not understand why artists like MC Taylor are upset with Neil Young for not making the payments issue An Issue and causing this "expectation" of removing their music from Spotify by their fans. Neil had his own reasons and his are also legit! While it would have been cool, he didn't have to take up the payments issue. And as far as I know, Neil didn't ask anyone else to do the same. That a couple other legacy acts subsequently did is beside the point.
(Side note: Yeah, it's easier for Neil to do it because he doesn't need to worry about money, but I wish some younger and more lucrative artists had also joined in. Where the hell is Taylor Swift? She already knows she doesn't need Spotify.)
I agree with a lot of the points made in this Washington Post story, and think it's basically my stance, especially Sadie Dupuis, who "said she was “impressed to see Neil Young take a decisive stance against Spotify” but disappointed that his criticism of the platform didn’t extend to the “poor compensation of the musicians on which it builds its wealth.”
"“There are a whole lot of reasons to critique Spotify,” Dupuis said in an email. “I wish the contingent of fans unsubscribing due to Neil Young and Joni Mitchell were also made aware of how little of their subscriptions were actually making it to the artists they love.”'
I'm also surprised to see any Spotify defence. Anyone can see that the streaming economy is not working out for the main party that makes it worth anything and the party upon whose backs it was unfairly built. And hopefully people can see that if they can't earn a living, musicians can't make music. Or only independently wealthy ones can, which might be worse. The whole ecosystem and economy are fucked and it's up to us little individual data points (i.e., the subscribers) to demand it change for the better for musicians. Spotify won't listen to Neil Young but they will listen when people stop handing over their ten dollars every month.
I think this is where we disagree. Many people still buy records and go to concerts and support artists that way and listen to music on a regular basis that way. I don’t see how having spotify as an additional value stream undercuts the revenue that artists are generating through those avenues that they’ve always relied on. If an artist is fully relying on streaming alone to make a living, they wouldn’t have had any income in a world without spotify. I don’t think spotify has stopped people from going to concerts or buying records. Itunes killed off CDs years before Spotify came around.Those artists caved because it is basically the ONLY way people listen to music now. For the vast majority of artists, if you're not available on streaming services, you don't exist. Spotify has so effectively convinced people that this is shitty exploitative model is the only way it can be. It's not. (People being consumers, not artists. The artists clearly know the model is broken. A lot of fans don't want to face it!)
I think this is where we disagree. Many people still buy records and go to concerts and support artists that way and listen to music on a regular basis that way. I don’t see how having spotify as an additional value stream undercuts the revenue that artists are generating through those avenues that they’ve always relied on. If an artist is fully relying on streaming alone to make a living, they wouldn’t have had any income in a world without spotify. I don’t think spotify has stopped people from going to concerts or buying records. Itunes killed off CDs years before Spotify came around.
See, I disagree. I come here for vitriol and to feel superior. You've completely watered down this experience and thus lessened the value of the forums as a whole.I never thought I would have started such a great conversation all the way around, specially in the hot takes thread. Good job everyone!