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'Weird Al' Roasts Spotify's Artist Payout System in Year-End Wrapped Video

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Re: 'Weird Al' Roasts Spotify's Artist Payout System in Year-End Wrapped Video

#81
post #50

> which is notoriously bad at paying musicians. The only thing I ever see are people comparing against the money that 90's rockstars used to be able to bring in from album sales. That ship sailed a long time ago, Spotify take everyone's money, substract a percentage for themselves and distribute the rest based upon number of plays. If you were a big artist it's probably worse because you aren't getting a sweet deal t…

I see your point, but it's mainly this part: > subtract a percentage for themselves Streaming platforms (let's not just pick on Spotify, though they also pay worse than others) just do this arbitrarily. They decide how much to skim off for themselves before graciously paying artists. This isn't how it works in basically any other industry where one group of skilled individuals create content that is then sold on some…

iTunes had a formal sale price, and it still led a catastrophic collapse in music sales revenue (https://money.cnn.com/2013/04/25/technology/itunes-music-dec...) which only ended when Spotify became big. The point of a comparison is to understand whether Spotify is doing something that could be fixed to get more revenue to artists, or whether the economics of selling songs for money just don’t work very well in a digital world.

Re: 'Weird Al' Roasts Spotify's Artist Payout System in Year-End Wrapped Video

#82
post #50

> which is notoriously bad at paying musicians. The only thing I ever see are people comparing against the money that 90's rockstars used to be able to bring in from album sales. That ship sailed a long time ago, Spotify take everyone's money, substract a percentage for themselves and distribute the rest based upon number of plays. If you were a big artist it's probably worse because you aren't getting a sweet deal t…

I see your point, but it's mainly this part: > subtract a percentage for themselves Streaming platforms (let's not just pick on Spotify, though they also pay worse than others) just do this arbitrarily. They decide how much to skim off for themselves before graciously paying artists. This isn't how it works in basically any other industry where one group of skilled individuals create content that is then sold on some…

Ironically it's widely known that the labels get 70% of all music revenue and Spotify gets to keep 30% for itself (which famously hasn't been enough to even turn a profit). You couldn't be more wrong.

Re: 'Weird Al' Roasts Spotify's Artist Payout System in Year-End Wrapped Video

#84
post #61

Earlier quoted context omitted.

Not to forget that Weird Al is doing a lot of covers - so he is not the original composer of the song. Performers usually get paid way less (everybody can perform a cover of any song out there), but the composers get paid the lion share. I also doubt he gets $12 but probably lot more, the video is just intended to draw attention to Spotify's payout schemes.

Weird Al does not do covers. His albums are a mixture of parodies and fully original pieces. The parodies often use the same melody as the source work, but with original lyrics. Sometimes the music is itself parodied, and performed using an accordian or some other unique instrument. In terms of creativity, artistic vision, lyrical difficulty or any other metric, Weird Al should be understood as an incredibly talented…

Sometimes the music is itself parodied, and performed using an accordian or some other unique instrument.

For this conversation, that is completely irrelevant and he still has to pay royalties to the original composer. Furthermore, while Weird Al does have many completely original songs, looking at his streaming numbers that isn't what most people seem to listen to.

The fact that he is both very talented and very creative is both true and irrelevant.

Re: 'Weird Al' Roasts Spotify's Artist Payout System in Year-End Wrapped Video

#85

AFAIK Spotify doesn't pay per stream. They pay a percentage of revenue to artists that is divided based on streams of their music. Record companies and big artists negotiate these deals with Spotify. It seems like artists should be more angry with their labels about the deals that are negotiated than mad at Spotify.

This is correct. While many of the exact details aren't public, Spotify's royalty model is aggressively hostile to the artists. Tidal, YT Music, and Apple all pay artists an order of magnitude more per stream than Spotify. Apple even lobbied to enforce a new royalty payment for artists of 1 cent / 100 streams [0]. Apple music effectively pays this rate to artists right now. In Al's case, those 80 million streams would have netted him about $800k.

[0] https://pitchfork.com/news/apple-music-in-contrast-with-riva...

Re: 'Weird Al' Roasts Spotify's Artist Payout System in Year-End Wrapped Video

#86

> which is notoriously bad at paying musicians. The only thing I ever see are people comparing against the money that 90's rockstars used to be able to bring in from album sales. That ship sailed a long time ago, Spotify take everyone's money, substract a percentage for themselves and distribute the rest based upon number of plays. If you were a big artist it's probably worse because you aren't getting a sweet deal t…

Maybe I have a different memory of record deals, but I've never heard of a band that made money from album sales. This is why they are always touring. It's not to promote the album, but to make money themselves. That's why there are jokes about bands "coming out of retirement" to do a tour after so many years being because one of the members needs to make a payment for something or other.

Most couldn't, there were only a couple like Metallica.

But that's my point, people never made money from this previously. Why is Spotify being demonised because bands have bad contracts with their labels?

Re: 'Weird Al' Roasts Spotify's Artist Payout System in Year-End Wrapped Video

#87
post #59

AFAIK Spotify doesn't pay per stream. They pay a percentage of revenue to artists that is divided based on streams of their music. Record companies and big artists negotiate these deals with Spotify. It seems like artists should be more angry with their labels about the deals that are negotiated than mad at Spotify.

Spotify literally has never turned an annual profit because labels extract all of the $ due to the monopoly they have on content. Artists should be mad at the labels THEY entered into contracts with, not spotify.

From what I have heard this is because Spotify has many people on their free tier, versus profitable competitors like Apple music which give a trial but are paid-only. If I understand it correctly Spotify's ads on the free tier don't generate the $10/mo revenue they get from paid users.

Re: 'Weird Al' Roasts Spotify's Artist Payout System in Year-End Wrapped Video

#88
post #82
post #50

Earlier quoted context omitted.

I see your point, but it's mainly this part: > subtract a percentage for themselves Streaming platforms (let's not just pick on Spotify, though they also pay worse than others) just do this arbitrarily. They decide how much to skim off for themselves before graciously paying artists. This isn't how it works in basically any other industry where one group of skilled individuals create content that is then sold on some…

Ironically it's widely known that the labels get 70% of all music revenue and Spotify gets to keep 30% for itself (which famously hasn't been enough to even turn a profit). You couldn't be more wrong.

You're right, I didn't know this. I was under the impression that Spotify self-reported its split and that it wasn't really auditable in any way. Can you link to a source?

Re: 'Weird Al' Roasts Spotify's Artist Payout System in Year-End Wrapped Video

#89

Earlier quoted context omitted.

I’m sure he’s not hard pressed for money but i doubt he’s a mega millionaire. This should be seen as using a platform and audience to speak for those much smaller than him.

He seems to have a net worth of ~$20M.

That’s still 980 short of “mega”.

Re: 'Weird Al' Roasts Spotify's Artist Payout System in Year-End Wrapped Video

#90

I think a better payout structure for Spotify would be to go per-user. For example, for each subscriber a given amount from their subscription plan is earmarked for payouts. Let's say about 4$ per user. We divide that amount by the number of streams the user had that month, and we simply pay that amount to the artist. Examples: - I only listened to one song this month? The full 4$ go to that artist. - I listened to 2…

This would incentivize artists to release more, shorter tracks.
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