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> If they can make the average song listened to by a user just 1 second longer, they reduce that by about 0.5%. This isn't how music royalties work - rather, S
by rm999 3y ago
> If they can make the average song listened to by a user just 1 second longer, they reduce that by about 0.5%.
This isn't how music royalties work - rather, Spotify (and most other on demand streaming services) pay out a % of their net revenue to rights holders. This % does not change based on how many streams there are in total, but it IS distributed proportionally based on the number of streams, so it's more profitable for a music rightsholder to have more streams (the topic of the article).
Some high level information: https://support.spotify.com/us/artists/article/royalties/ https://support.spotify.com/us/artists/article/royalties/
- morkalork 3y agoSeems like they should measure proportions using seconds streamed vs units streamed?
- foota 3y agoWhite noise and other background sounds cause issues here.
- theLiminator 3y agoHow so, maybe that just means those white noise tracks bring the most value.
- morkalork 3y agoRight? As a user, if I listen to 2 hours of content split equally between sources A and B, it seems fair that they each get half of my subscription fee (less Spotify's cut). Regardless of if A views B's content as "less worthy". On the other hand I wouldn't sign up for a monthly white noise service and if A went on strike and didn't renew license agreements, that's what Spotify would become. Record labels do have leverage over white noise which is a commodity (right? y'all aren't beholden to certain streams are you??)
- internet101010 3y agoI actually do have certain episodes/streams saved that are my go-tos. Navigating "rain sounds" has become a lot more difficult lately specifically due to record labels complaining, particularly if you want one continuous 8hr stream. Instead all I can find now are playlists with a bunch of things I don't want. If I didn't have my favorites already saved I wouldn't be able to find them at all now.
- conradfr 3y agoThat's why you'll see more of this: https://www.universalmusic.com/universal-music-group-and-deezer-to-launch-the-first-comprehensive-artist-centric-music-streaming-model/ https://www.universalmusic.com/universal-music-group-and-dee... https://www.bloomberg.com/news/newsletters/2023-09-07/universal-music-group-and-deezer-aim-to-fix-the-broken-economics-of-streaming https://www.bloomberg.com/news/newsletters/2023-09-07/univer...
- lotsofpulp 3y agoSo Universal Music Group is depending on its competitor, Warner Music Group (owned by Access Industries which also owns Deezer)? Interesting. I thought Universal/Warner/Sony were propping up Spotify as leverage for when they need to negotiate with Apple/Google/Amazon.
- Broken_Hippo 3y agoThose are already an issue that Spotify has. https://www.engadget.com/spotify-almost-removed-white-noise-podcasts-to-save-money-065639545.html#:~:text=Previously%2C%20Bloomberg%20reported%20that%20white,Anchor%20to%20publish%20their%20shows https://www.engadget.com/spotify-almost-removed-white-noise-....
- reducesuffering 3y agoThey both seem primitive. If a user paid $10/month for a subscription, each month they should divvy that $10 to the proportional minutes listened of each artist for that month. That’s paying out to the people that are keeping that person subscribed. Minus Spotify’s cut of course
- wryun 3y agoBut also: https://www.theguardian.com/business/2023/sep/06/deezer-and-universal-music-sign-deal-to-focus-royalties-on-big-artists https://www.theguardian.com/business/2023/sep/06/deezer-and-...
- lotsofpulp 3y agoCan you define “net revenue”? Do you mean gross revenue, because Spotify does not earn profit (aka net income)?
- datavirtue 3y agoThey must be evil communists/socialists.
- deleted 3y ago[deleted]
- MuffinFlavored 3y agoIs a stream defined as wonderful listen through the song or like maybe halfway through?