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    • KapteinB
      Top reader this weekScoutScribe
      3 weeks ago

      Under the CRB settlement, the headline royalty rate for standalone music streaming services is set to increase gradually over a 5-year period. This started from 15.1% in 2023 and should reach 15.35% by 2027.

      I'm not entirely sure what a headline royalty is. Is that the direct payment to songwriters; the infamous $0.003 per song?

      Since going public in 2018, Spotify has struggled to turn a profit, largely due to the high royalties it pays to the music industry.

      In 2023, the company paid record labels, artists, and other rights holders more than $9 billion from its $13.2 billion in revenue. This amounted to about 70% of its sales.

      From how I see it, the main problem with Spotify is the outrageous deal they had to sign with big record labels to be allowed to use their music. In a fair world the record labels would pass on most of this to their artists, and it would be easier to make a living from making music.

      I use Spotify myself, have so since back when they were the only game in town, but every time I read an article about how little Spotify pays artists I consider swapping to a different service. Where do other Readers get their music streaming from?