Comment on Spotify Music Library Scraped by Pirate Activist Group

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mrdown@lemmy.world ⁨16⁩ ⁨hours⁩ ago

The major labels are still the biggest evil

Spotify & Co. make advance payments to the labels to be allowed to use their music catalogues. These advance payments are then recouped with the streaming revenues. However, if the revenue is less than the advance, the difference remains with the labels as “breakage”. If a streaming service pays a label US $1 million as an advance for the contract period, but the label’s catalogue is only streamed to the value of US $750,000, then the label has US $250,000 in additional revenue that does not have to be distributed to the artists.

…wordpress.com/…/the-music-streaming-economy-part…

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