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How much money would they want to skim to distribute the music? 33-66 split doesn’t sound so bad considered that they don’t produce the music, sign artist, promote them, etc
They can always start their own label if they believe that vertical integration will be more profitable for them.
They tried that with podcasts and it didn’t go as planned
33% is a massive amount for effectively just being a download service. massive
For reference, the Steam store of the gaming distributor Valve charges 30% of each sale, however the Steam service provides quite a bit of incentive. Having community and discussions easily accessible, cloud storage that links to screenshots and saves, branches, I'm sure there's more.
Meanwhile Spotify gives you, what, playlist creations?
Because servers and traffic are free. Totally forgot how you don't have to pay the people keeping the service alive either. A steam game you download once? Maybe once a year? Music gets streamed (downloaded) every single time unless you decide to download it. Can we maybe not pretend like Spotify does fucking nothing?
Meanwhile Spotify gives you, what, playlist creations?
Distribution is hardly free. There are massive overheads - do you know all the details of sales tax law in your own country? What about in hundreds of other countries? They're all different. And what about refund laws? That's also different in each country. If someone writes you an email in a language you don't even recognise... do you just ignore it? To give one example in my country if a customer asks for a tax receipt after a purchase, you are required by law to give it to them. That's hard to comply if you don't speak the same language as the customer. Spotify handles all those headaches for you.
What if your bank tells you they have refunded the payment someone made to buy your album, pending an investigation into wether or not the cardholder actually authorised the payment and received what was advertised. Can you prove it wasn't a stolen card? Can you prove the album was delivered to the customer? The bank isn't going to do that for you - they're happy to just refund the payment (and might charge the seller a $50 processing fee...). Spotify is able to provide proof and will fight people who demand unreasonable refunds. You probably can't prove it, which means anyone who wants a free album can just buy it and complain to their bank. And trust me, it will happen. Might not even be your customers asking for refunds - it might be a rival band that wants you to suffer. If there are too many refunds, the bank will just take way your ability to sell stuff.
Poor Spotify. Here's a Link to a documentary about the dark side of Spotify, by Slightly Sociable. Their illegal business, extortion of artists and support for scamming.
To determine if this company is actually a poor widdle guy or just trying to look like their hands are tied with respect to paying artists, look up how much Daniel Ek is worth, and then look up what he does with his money
You do know even without Spotify artists would be getting paid the same amount by their label?
Spotify splits 70/30, that 70% goes to the rights holder. So why aren’t the artists seeing it?
It used to be artists didn’t make money on albums annd only from merch at tours, nothing has really changed in the music industry.
And snoop dog complains after receiving a measley $45k from one billion streams.
They just want your personal and behavioral data to sell to third parties for shady purposes. After all, AI's don't feed themselves
ok. they should get a job then. pull themselves up by their bootstraps
