After announcing increased prices, Spotify to Pay Songwriters About $150 Million Less Next Year
After announcing increased prices, Spotify to Pay Songwriters About $150 Million Less Next Year
Spotify will potentially pay songwriters about $150 million less in U.S. mechanical royalties next year after bundling its plans with audiobooks.
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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Spotify could charge ten times their current price - indeed, should have been, for nearly the entire catalogue of western music? even at $100/mo it would have been a steal - and even so, they wouldn't be paying artists significantly more, or even at a reasonable rate.
The model is the problem. The middleman is the problem. The service itself is the problem. It can never work in a way that pays artists fairly as long as it requires human oversight, administration and intervention, let alone all the wasteful shit like advertising and legal overhead/payola for politicians.
Get an AI to do it right, though... puffpuff, pass
thank you. the fact that we aren't rioting to have more automated services that pass the cost benefit on to the people is something i'll never understand. we have the tools to build utopia but they can;t figure out how to make enough money from it.
The problem is, they're all thinking that utopia will have money. Silly noobs
exactly