People can disagree in good faith about which approach is preferable, but it’s simply not the case that Spotify is just paying less to pad their bottom line. You can choose to feel aggrieved about the lower aggregate rate (which many do), or you can choose to be happy that people that can’t afford to pay $10 a month are given a way to participate in a way that allows for some royalties to be earned (which is how I feel). The reason for this lower rate is that Spotify offers something that the others don’t – an ad-supported tier that pays at a lower rate because advertising does not bring in the amount of money subscriptions do. This is in relative parity to other DSPs and slightly higher than brick and mortar retail (60%), which is understandable given that they must pay for physical space to conduct business.Ī note about rates: Spotify is pilloried for the fact that they pay a lower net rate than Apple or Tidal.
Spotify is the current scapegoat for the ills of the working-class artist, despite them paying 63% of gross revenues back out to rights holders. So, it pains me when I see artists and those who love them misdiagnose the source of their difficulty. We try to help them navigate the industry so that they can earn the most money possible without sacrificing the quality of the effort in promoting their art, all while they maintain 100% ownership and control over their masters. We invest in artists we work hard for artists. For anyone who knows me and knows my company, Thirty Tigers, you know that our heart is squarely with the artist. It’s become more difficult to earn a living as an artist. I thought you might enjoy it, so I’ll copy what I wrote in preparation below. I wasn’t expecting RS to just print what I wrote, but putting things down in writing helps me think more cogently. I was happy with the piece, and I understand that they have limitations to how long it could be, but I wrote a more detailed breakdown of the issue. I really appreciate you saying nice things about my contribution to Rolling Stone.
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