Taylor Swift recently sparked debate among the musical sphere by removing her entire discography from Spotify on the grounds that ‘music is art and art should be paid for’.
Spotify CEO, Daniel Ek, counteracted this statement, arguing that Swift would have been on track to earn $6 million from the site this year alone. For unsigned artists, this topic is particularly relevant as it raises the question – what does Spotify streaming revenue mean to you?
Spotify’s service centres around encouraging users to pay for music through a platform that rewards artists with the royalties they deserve. In doing this, Spotify says it plays a key role in steering users away from illegal downloads by offering a free service that allows people to try it out before hopefully subscribing to their premium tier and that they distribute almost 70% of all revenue back to distributors. Ofcourse, if you use Spinnup to get your music on Spotify, you keep 100% of the royalties from your tracks! The chart below from Spotify in 2013 demonstrates the royalty payments for a variety of album genres:
According to the online statistics released by Spotify, the average per stream payout equates to between $0.006 to $0.0084. So what do you think? Tweet us with your thoughts!