In this case, it’s a good thing that Spotify is an European and not an US company. Less incentive for enshittification. At the same time, the main reason they fuck over musicians so much is not so much Spotify but because of record labels and ads themselves. The record labels are the ones with the financial power, holding the copyrights. It’s not that Spotify doesn’t pay labels, they do, then in turn the labels keep most of the money and fuck over the artists. At the same time, the record labels came last to the streaming game. Blinded on the madness that was the Napster and peak P2P era, a war they lost, they didn’t want to even sell digital copies. Many awards and labels didn’t considered digital sales, legitimate sales. An many rogue artists sold or gave their digital albums for free to protest this. So they were always behind the curve. When Apple forced the labels to sit at the table for iTunes, they had no bargain leverage and were forced to accept shit terms in exchange for the hope that streaming would stop piracy. As a result, the tech giants got to keep most of the revenue bag and that’s been the status quo ever since.
On the other hand, adverts don’t pay. We tend to forget this because the likes of Google and Facebook are so massive. But the only reason they make any money is because of how massive they’re. Adverts are a shit form of payment. Too expensive and no one wants to advertise with you, too cheap and you can’t cover even the platform maintenance, it’s a delicate balance. The result is you need millions of eyes to make any significant amount of money from an advert. There’s a reason cable and open air TV has devolved into 15 minutes of advertisement per every 20 minutes of entertainment.
Spotify pays a fraction of a cent for every play. It takes 150 plays of a song to make a dollar from advertisement, and most of that dollar is gonna stay with the record label. This is significantly worse for indie and small up and coming artists. They simply can’t make a living out of Spotify unless they are already big and have a massive following. This hurts the whole industry as it becomes harder and harder to nurture new talent.
The up side is that, although they are getting shafted by Spotify and the labels, a subscription play is worth more than a free play. Up to ten times more than a free user play. So your subscription does help pay artists more.
thisNotMyName@lemmy.world 8 months ago
afaik that’s mainly the fault of the music labels, they charge quite good money, but they don’t give it to the artists: blog.groover.co/en/tips/loud-clear-spotify-2/
sliels@sh.itjust.works 8 months ago
That article, while not necessarily wrong, is blatant propaganda and overlooks the most important issues until the final paragraph, and even then it only touches on it once.
As someone with expansive knowledge and experience in the indie music industry, with a lot of experience dealing with streaming services and Spotify in particular the biggest problem is not the % of value created paid out, it’s what the actual value is. They don’t touch anywhere on how much you get paid per play, how the value is created, how the money flows once it’s in Spotify’s hands, etc.
As said in the article, artists and indie labels/distributors have basically no ways to reach Spotify to negotiate a price, but Spotify itself paid literal millions to license a few major labels in the beginning. The ‘value’ of a play is extremely skewed, where you’d need upwards of 10.000 plays to equal a single play on a nightly radio show for a big broadcaster like the BBC or at a festival with 500 people. On top of that, if you work hard, network properly and prepare your release you can get quite good exposure through radio, dj and other live plays, whereas with Spotify you have to be lucky that they put your pitch towards the right ‘tastemakers’, they are actively working against user (influencer)-playlists, have piss poor customer service, blatantly favour major label tracks in their algorithms and don’t actual care about their listeners.
On top of that we’ve got the obvious subscription enshittification, classic outlandish manager/director salaries and bonuses, the need to have an ever-rising share price and more.
thisNotMyName@lemmy.world 8 months ago
Thanks for the insights. No holy among the capitalist companies…
CarlsIII@kbin.social 8 months ago
It’s also not a new or Spotify-centric problem, either. Labels have been screwing over the artists for decades.
gmtom@lemmy.world 8 months ago
Yeah I work at a label we pay our artists about 30% of what we make off them, but that isn’t actually that bad considering the amount of overhead there is at a record label and the amount of services we provide for them. Just advertising alone makes up about 1/3 of a big label and we will spend more on advertising, distributing and actually allowing them to make music than we actually pay them, so in terms of end value it’s probably closer to 60 or 70%