Spotify: how much do artists really cash in?
Spotify pays about 70% of its earnings in rights paid to record companies, which equates to an average for each artist, ranging from $ 0.006 to $ 0.0084 per audience. These are some of the data that the famous music streaming service has provided with a dedicated website. It's called The Spotify Artists and is aimed at musicians, who are told about the revenue from the publication of their songs on the music platform of the moment.
Spotify therefore decided to open the doors in the name of transparency and explain to everyone how its business model works. The initiative seems to be taken for the recent complaints of some famous composers. An example of everything is Thom Yorke, leader of Radiohead, who tweeted this summer: "Don't make mistakes: Spotify won't pay for the new artists you discover with streaming". But the streaming music service responds by explaining that, in the countries where it is present, revenues for musicians and record companies are growing. They have already paid more than a billion dollars in fees, half of which was paid only in 2013.
The revenue from the music industry has fallen in recent years. The reasons are different, from changes in listening habits to the reduction of leisure time expenses. However, even the bet of digital music seems to be the only hope to recover some of the lost earnings. Although the web has not reported the gains of the past to the record market, the trend is uphill. In fact, data from the International Federation of the Phonographic Industry (IFPI) reveal that the total revenue of the music industry has decreased, from $ 23.2 billion in 2004 to $ 16.5 billion in 2012. However, digital music in the same period is has grown, going from a gain of only 400 million dollars to 5.6 billion last year.