this post was submitted on 09 May 2024
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When Bloomberg reported that Spotify would be upping the cost of its premium subscription from $9.99 to $10.99, and including 15 hours of audiobooks per month in the U.S., the change sounded like a win for songwriters and publishers. Higher subscription prices typically equate to a bump in U.S. mechanical royalties — but not this time.

By adding audiobooks into Spotify’s premium tier, the streaming service now claims it qualifies to pay a discounted “bundle” rate to songwriters for premium streams, given Spotify now has to pay licensing for both books and music from the same price tag — which will only be a dollar higher than when music was the only premium offering. Additionally, Spotify will reclassify its duo and family subscription plans as bundles as well.

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[–] thesmokingman@programming.dev 9 points 7 months ago (1 children)

Walk me through this.

Before Spotify, I’d buy a record (physical or digital) and listen to that. I pay the artist once. After Spotify, I buy a record and listen to it on Spotify. I pay the artist the normal record price and there’s a long tail from stream payouts (unless they don’t reach the payout threshold).

Before Spotify, if someone heard a song and didn’t buy the record, they didn’t pay the artist. After Spotify, if they still don’t buy a record, the artist now earns from stream payouts.

Finally, before Spotify, if someone bought a record but stopped buying after Spotify, the artist loses that record purchase. This is definitely bad. Was Spotify the real reason? Would something other than Spotify have pulled them away? What levels of fame are materially affected by this?

Do artists have to pay to be on Spotify? Is that the issue?

[–] supersquirrel@sopuli.xyz -4 points 7 months ago (1 children)

the artist now earns from stream payouts.

Do artists have to pay to be on Spotify? Is that the issue?

The issue is that artists don't make any actual money on Spotify, they are being forced to put their music on Spotify because that is where you have to put your stuff if you want to be a successful recording musician.

Meanwhile a couple of years ago the Spotify ceo said in defense of completely destroying any semblance of money making from recording music:

“There is a narrative fallacy here, combined with the fact that, obviously, some artists that used to do well in the past may not do well in this future landscape, where you can’t record music once every three to four years and think that’s going to be enough,” said Ek.

https://www.reddit.com/r/musicmarketing/comments/mlemlh/why_youre_9998_likely_to_never_make_real_money/

Streaming is great, but the structural evisceration of musicians and the value of labor in composing and producing is basically negative at this point given the huge amount of time that must go into a track to get it 100% there and ready for listeners.

[–] thesmokingman@programming.dev 5 points 7 months ago (1 children)

The thread you linked says what I said.

I’ve been doing DIY music since I was a kid. The vast majority of bands are never going to make any money ever. Spotify didn’t change that. Streaming didn’t cause that. The reality of every kid with a guitar thinking music is about making money not having fun is what did that.