Godrich stated that “new artists earn money fuck all with this model”, saying that the debut Atoms For Peace album, Amok, was being taken from the program. Thom Yorke from the band also chipped in by tweeting, “Make no error new artists you find on Spotify will no earn money. at the same time shareholders will quickly being rolling in it. Simples.”
Spotify has replied by stating that by the end of this year, it will currently have paid out an estimated $1bn in whole to rights holders. “We’re 100% dedicated to making Spotify the the majority of artist-friendly music program possible, and are constantly speaking with artists and managers about how exactly Spotify could help build their careers,” it added in a statement.
A crucial problem for those attacking Spotify is not simply the low per-stream rates they accuse it of having to pay but additionally a lack of transparency in sales. What ought to be noted, nevertheless, is that although Spotify is live in 28 countries, it simply has an energetic user base of 24 million, of which 6 million are paying subscribers. In comparison with iTunes, HMV, Amazon and YouTube, it is a small player.
Spotify is not the world, however the hair-pulling and foot-stamping on both sides that usually accompanies these royalties debates often forgets that. Therefore where else do artists earn money? Here are a few ballpark figures:
CDs and downloads: Based on the seller price and if they are recouped .it might be anyplace between 1.02 and 1.44 for a CD album sale or between 10p and 14p for a download .
Radio: A play for a three-minute song on Radio 2 creates 59.73 for the songwriters, and a related figure (collected by PPL) is split between your label and the performing artists.
Live: Private gigs could range from ￡75,000 for an act with several hits to 2m for superstars. One UK DJ is believed to have made $300,000 per show in Las Vegas last year.
Use in a TV show or film: Music on EastEnders, say, falls in the broadcaster’s blanket licence and would cost a few hundred pounds. If utilized as a theme tune to a show, it might generate 40,000 split involving the act and label .
Use in a Hollywood movie: Up to ￡100,000 simply for the recording
Use in an ad: Between ￡300,000 and ￡400,000 may not be unusual for the rights to the unique recording for a defined campaign period, possibly increasing if its use is exclusive.
Endorsements: For everything from clothing brands and jewellery to energy drinks, up to ￡400,000 a product.