Spotify Myth 3
2013 July 21
Myth 3. Spotify gives 70% of the revenues to rightsholders, the exact same amount rendered by iTunes.
This misleading comparison ignores who’s receiving the money. Spotify is comparing what they give in total, not what all artists make individually.
iTunes downloads were upfront, no matter what song was downloaded. Buy the Neon Trees song for a $1? Buy a Mike Vial song for a $1? The same 70% goes to the artist/rights holder.
Streaming a Mike Vial song on Spotify doesn’t pay him the same rate as streaming a major label song because the labels worked out their own deal with Spotify, and we don’t know what that deal is.
An indie licensing through CDBaby does not get the same deal as say Rihanna through Def Jam.
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