When Spotify announced in January that it would pay a record $9 billion to the music industry in 2023, many details remained unclear. The music streaming giant has finally given greater context to these numbers, as evidenced by information from Variety.
Initially, the company commented that the amount paid over the past six years has nearly tripled, representing a large portion of the more than $48 billion that Spotify has paid to the industry since its founding.
In March last year, Spotify said it gave nearly 70% of every dollar generated from music back to the industry. The streaming company’s music revenue comes from two sources: subscription fees for its Premium subscriber platform and music advertising fees on its free service.
The music industry therefore receives much of this value through copyright holders who include record labels, publishers, independent distributors, performing rights organizations and collecting societies.
In other words, a clarification needs to be made: first of all, it is the rights holders who receive the money from Spotify for the songs, usually a record company. Only after receiving the compensation or percentage, the corresponding part is transferred to the artists or composers.
Artists’ and songwriters’ share of total streaming earnings is determined by their agreements with these rights holders, their record labels, and not the streaming services.
The post Spotify: Independent artists gain space and increase profits on the platform appeared first on Olhar Digital.
Source: Olhar Digital
Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.
