Home Music Business 2017 Data Shows Spotify Artist/Label Payments Are Declining

2017 Data Shows Spotify Artist/Label Payments Are Declining

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New Report Shows Spotify Royalty Payments Declining

Lately it seems like Spotify is on top of the music game with fresh new licensing deals with labels, a $5 billion increase in valuation and plans to go public within a year. But a new report by a royalty organization says artist and label payments are declining, despite large growth in subscriber and advertising revenue.

The streaming music company has yet to turn a profit even though revenues are rising. A new report from royalty organization Audiam also shows that per-stream revenues paid out to labels, publishers and artists are also being cut. Two years ago they released a report stating similar findings – as revenue went up, streaming payouts remained low.

A brand new report has shown that nothing has changed in the two years since the first report. The numbers used in the reports are not Audiam’s – they are from the US Copyright Office.

Digital Music News reports:

In December 2016, to earn $100 from ad-supported streams, a song would need be played 448,672 times.  Spotify paid out $0.00022288. Yet, just one month later, the number dropped down to $0.00013508. To earn $100 from ad-supporter streams, a song would have to be played 740,302 times. Note that this didn’t apply to premium streams.

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Spotify has, over the last couple of years, defended the numbers by stating that overall streaming payments have actually increased. Also, Spotify says it pays out over 69% of revenue. Some say, in that case, the labels are to blame.

 

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