![]() So, there is a huge scope of improvement for Spotify. But, in all of this, the fact remains that artists are still poorly paid and the payout system is clearly inefficient. Of this total payout value, only ~15 to 20% (depends on the artists contract) goes to the artist.īut, Spotify already pays 60 to 70% of its revenue as royalty, the problem is it rarely reaches the artists. Royalty Payout = (negotiated royalty rate %) x Here's how the royalty payment MATH is calculated: Which one of the lowest among all platforms.Ģ) Only the top 2% of Spotify's 8M artists make more than $1k per year. ![]() But, why do artists hate Spotify?ġ) Spotify only pays a mere $0.003 per stream. It even lost $2B in market value & its shares dropped by 25%.Īmid this, a serious discussion about Spotify's compensation to artists took center stage. Spotify faced major backlash for this, with artists like Neil young and Joni Mitchell boycotting the platform. Everything was going well, that's until Rogan came under fire for some remarks he had made in his videos. ![]() Last year, Spotify paid $100M to get exclusive rights to Joe Rogan's podcast. ![]()
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