“ Lady Gaga’s track “Poker Face” was one of the most popular tracks during a five month period on Spotify and was played more than a million times. So how much money does she get paid by STIM (the Swedish Performing Rights Society) for this massive achievement? SEK 1150 – that’s around $167 or roughly 113 Euros.”
A dismaying article about Spotify.
My problem with Spotify so far has been that their selection is limited to mostly major label tracks. Apparently this is because Spotify has taken investments from each of the big four labels; it’s success as a business benefits the majors who still believe their lunch is being eaten by piracy. (It’s not, but that’s another rant)
The problem now is that the labels are make money off the success of Spotify on the backs of their own artists. Because their profits are tied to their equity in the company, and not the royalties from plays, they care about spotify usage not deals with artists which they would take a cut from. Hence the economics described above. The majors are exploring ways to benefit from piracy economics at the expense of their own artists. This is a bad deal for all but highlights the desperation of the majors who will bite the hand that feeds to break the iTunes monopoly and the straw-man of piracy. (Via TorrentFreak)
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