[HN Gopher] Justice at Spotify
       ___________________________________________________________________
        
       Justice at Spotify
        
       Author : giuliomagnifico
       Score  : 179 points
       Date   : 2021-03-16 13:25 UTC (9 hours ago)
        
 (HTM) web link (www.unionofmusicians.org)
 (TXT) w3m dump (www.unionofmusicians.org)
        
       | z5h wrote:
       | I'll make a track 1 second long, post to Spotify, and with my
       | Spotify account I'll listen to it non stop. I'll earn
       | $26000/month. I see no problem here.
        
       | joeblau wrote:
       | I was just listening to a podcast and the CEO was talking about
       | how he wants 1 million artists to be able to live off Spotify[1].
       | I always find it interesting how far the company implementation
       | of the vision diverges from what the founder says the vision is.
       | This was also something that I saw with Uber. A question i have
       | is what leads to this disconnect?
       | 
       | [1] - https://castro.fm/episode/I2SAkl#47:19
        
       | whywhywhywhy wrote:
       | You willingly handed over your work to Spotify, you signed the
       | contracts, now you're unhappy with the deal.
       | 
       | Spotify is a recent creation and it was nothing without musicians
       | yet they willingly went forward with it even though it was
       | obvious what would happen and now the obvious has happened they
       | want a better deal.
       | 
       | It's hard for me to muster up sympathy, they could have
       | collectively stopped Spotify from happening but they willingly
       | became part of it.
        
       | Kuinox wrote:
       | I'm happy to not pay 200EUR of Spotify per year:
       | https://www.last.fm/user/Kuinox/listening-report/year
        
       | frabjoused wrote:
       | Would it really be the end to ask consumers for 50% more Spotify
       | Premium to solve the problem? I would personally be willing to
       | pay more and feel music is undervalued. I can't imagine they
       | would lose 50% of their subscription base.
        
         | aksss wrote:
         | I've said before that I'd give up Netflix before Spotify, so
         | yeah maybe. But something would have to give out of principle.
         | I think the better solution in this musician/label/distributor
         | mess is the label takes less. That has costs and would change
         | how discovery works, but frankly maybe for the better.
        
         | FireBeyond wrote:
         | How much of that 50% would go to the record labels? We'd pay
         | 50% more and the artist would probably get 5% more. That
         | doesn't seem like a good ROI.
         | 
         | While no party is without concern, I don't think either
         | Spotify, the artist or the consumer is the problem here.
         | There's a 800lb gorilla standing over there.
        
       | aetherane wrote:
       | The proposed Singapore protest is illegal in Singapore (protests
       | are limited to Hong Lim park with permission from government). I
       | hope people participating realize this and don't get arrested.
        
       | andreshb wrote:
       | They should protest the record labels, they are the rente seeker
       | monopolists extracting the lion share of the value from both
       | sides
        
       | SpeakForMyself wrote:
       | What I see is bunch of greedy people whining for more.
       | 
       | Have this people ever considered the need of user of Spotify? I
       | doubt it.
       | 
       | Subscription to Spotify can be a lot to some people already, now
       | with these greedy, self-involved and small-minded drama bunches,
       | I just afraid the fee will go higher...
       | 
       | Why these people can be so shameless to blame on others for their
       | very own problem that their work sucks?
       | 
       | So laughable.
       | 
       | As this is the typical liberal mindset that blame the whole world
       | for your own problem.
       | 
       | LOSERS!
        
       | AbraKdabra wrote:
       | People acting on emotions rather than actually doing the math and
       | seeing that one penny per stream will make Spotify prices
       | skyrocket and if no one uses Spotify, well, they will be in a
       | worse situation.
        
       | hellbanTHIS wrote:
       | Hell they might already be paying a penny per stream to some
       | major labels, and everybody else takes whatever's left over, we
       | have no idea.
       | 
       | Maybe Drake's label demands a penny per stream for his new album
       | or they pull it. And then somebody else who's on a tiny label
       | gets 0.00000000001 cent per stream because that's all that's
       | left.
       | 
       | They really need transparency, the labels will never be
       | transparent so Spotify has to be. If nobody's transparent about
       | these deals then there probably needs to be legislation.
       | 
       | That would be obvious anti-competitive behavior on the part of
       | music labels if that's what's going on, and knowing them it
       | probably is.
        
       | RHSman2 wrote:
       | It's just crazy. Musicians are getting the equivalent of an ad
       | per stream. As a musician/composer that does it for the love I
       | put it many, many hours on each song. Its frickin' outrageous
       | that people get as good as nothing and it seems as the more
       | successful you are the better the deal you get #pyramid Also, the
       | CEO of spotify is just horrible.
        
         | jgeada wrote:
         | The "work" that the artist did _once_ is producing a lifetime
         | of revenue by taxing _everyone_ else 's work. The artist isn't
         | lifting a finger in the work that Spotify (or any other music
         | platform) is doing. Why are they expecting to get more?
        
         | FireBeyond wrote:
         | > Musicians are getting the equivalent of an ad per stream.
         | 
         | Except when I listen to an album, I'm often listening to 15
         | "ads" (tracks) in a row so I'm not really seeing the
         | equivalence. Especially when there are albums I listen to in
         | their entirety multiple times a month.
         | 
         | At least I use Tidal, which may have its faults but has
         | historically paid out the most to artists.
        
       | pgodzin wrote:
       | Is there a reason Spotify is uniquely targeted here? What rates
       | do artists get on Apple Music/YouTube/Tidal/etc?
        
         | pwinnski wrote:
         | Spotify is the largest player, by far, and pays the least per
         | customer.
         | 
         | The "average observed per-stream payout on Apple Music is
         | $0.00551 vs. $0.00318 for Spotify."[0] That said, a lot of that
         | is because Spotify has free users, while Apple does not.
         | 
         | 0. https://soundcharts.com/blog/music-streaming-rates-
         | payouts#a...
        
       | IndySun wrote:
       | Just wondering if there are any developers on this post working
       | with or defending the use of decentralised, music sharing,
       | copyleft, anti-royalty, software? And if so, do you see the
       | irony?
       | 
       | I sincerely hope people take my question at face value, I am
       | aware it's a big world.
        
         | paxys wrote:
         | Those are a lot of words to describe Napster
        
       | punnerud wrote:
       | This point is illegal in Norway, because you can't make noise
       | without applying for it first: "At the action:
       | 
       | DO make noise. We are musicians after all."
       | 
       | Recommending people to do something illegal is also illegal, so
       | it seems that the creators of this webpage is already breaking
       | Norwegian law.
       | 
       | And Tordenskioldsgate 2 in Oslo/Norway is just a coworking space,
       | so you only find employees from Spotify there a couple of times a
       | year on events or meetings.
        
         | cratermoon wrote:
         | 'You express a great deal of anxiety over our willingness to
         | break laws. This is certainly a legitimate concern.... One may
         | well ask: "How can you advocate breaking some laws and obeying
         | others?" The answer lies in the fact that there are two types
         | of laws: just and unjust. I would be the first to advocate
         | obeying just laws. One has not only a legal but a moral
         | responsibility to obey just laws. Conversely, one has a moral
         | responsibility to disobey unjust laws. I would agree with St.
         | Augustine that "an unjust law is no law at all."'
        
       | dandare wrote:
       | They mention "user-centric model" three times without explaining
       | it at all :(
        
       | kpmcc wrote:
       | There are some folks trying to build an alternative that is
       | better for musicians. https://resonate.is/ Last time I checked it
       | was still pretty niche but the idea (graduated pricing to stream
       | to own) is solid.
        
         | TheCraiggers wrote:
         | I'm not sure I'd call it solid, but it's an interesting take.
         | However, I believe there's a very good reason that the various
         | markets have went to the subscription model- there's a
         | difference _mentally_ between paying to stream all you want for
         | a month and paying for each song, even when its fractions of a
         | penny. Whenever a song you don 't like starts playing on your
         | stream, you realize you just paid for it. That's a negative
         | experience, and those stack up.
         | 
         | It doesn't matter if it can save you money in the long run.
         | Remember, we're dealing with the masses here- the same lowest
         | common denominator that caused A&W's 1/3lb hamburger to fail
         | because people thought it was _smaller_ than McDonald 's 1/4lb
         | hamburger.
        
       | ArkanExplorer wrote:
       | As a creator, relying on these platforms is problematic because
       | they are the #1 target for Government taxation. Depending on the
       | country, 20% of customer spend is swallowed up immediately by
       | sales taxes. Another 30% is potentially swallowed up by Google
       | and Apple.
       | 
       | The solution is really to go direct-to-consumer, through things
       | like Crowdfunding (unfortunately Patreon now charges VAT). Though
       | of course this adds a lot of overhead.
       | 
       | Alternatively, petition Governments to be leaner, and to increase
       | retirement ages to 70 (pensions are the single major and fastest
       | increasing Government expense), and to lower taxes (including
       | sales taxes) with the savings.
       | 
       | Pressure on Google and Apple (via regulation) to reduce
       | commissions is another avenue.
        
         | glatteis wrote:
         | is that really the problem here??? i would think spotify uses
         | its market dominance to drive down what they give back to the
         | artists. also, evading tax is not a good idea. it's there for a
         | reason.
        
         | epse wrote:
         | Working till 70? Gosh I don't think that's realistic
        
           | yunohn wrote:
           | This is already the case in some countries. For eg, the
           | Netherlands revises the retirement age every year, and is
           | currently at 68yrs.
           | 
           | The public suspicion is that they do this to avoid paying
           | pension, most of which has been squandered by the government.
        
         | Milner08 wrote:
         | Thats the stupidest idea ever. No thank you. I do not want to
         | work till 70 and I am sure no one else does either.
         | 
         | VAT is there for everyone, you can't avoid it because you are a
         | 'creator' thats insane.
        
         | eertami wrote:
         | Going after the pensions is probably the single quickest way to
         | find yourself unelected. Old people vote, and there are a lot
         | of them.
         | 
         | Also direct-to-consumer hardly absolves you from following tax
         | law. I agree that sales tax is bad, but only because it is
         | regressive and disproportionately taxes the poor. Raise income
         | taxes and abolish sales tax.
        
         | Hamuko wrote:
         | > _The solution is really to go direct-to-consumer_
         | 
         | How do you go direct to consumer without collecting VAT (while
         | not breaking tax laws)?
        
           | ArkanExplorer wrote:
           | International sales are counted as exports (not subject to
           | VAT) and domestic sales thresholds for VAT are typically
           | $80,000+/year
           | 
           | Of course, this varies by country, but its possible to
           | incorporate your business in a country where this is the
           | case.
        
             | Hamuko wrote:
             | The thing about exports is that they're also imports - and
             | imports are subject to VAT. So if I buy something
             | internationally, I need to declare it and then pay VAT on
             | it.
        
         | simion314 wrote:
         | I was thinking that musicians could create a platform
         | themselves and avoid the parasites but at this moment you still
         | have the mobile store parasites that will tax you even more for
         | each sale so before musicians can do soemthing about it we need
         | to fix the mobile app stores or make the PWA music apps have
         | same features as native ones(I have a feeling that Google and
         | Apple will fight hard against losing this big source of money)
        
       | breck wrote:
       | #abolishcopyright. Musicians if you're listening, find a
       | different way to earn a living than depending upon the
       | enslavement of ideas (and by extension, individuals). Copyright
       | is abhorrent, and needs to go. There are better ways.
        
         | kmeisthax wrote:
         | We've had two decades to envision alternative funding models
         | for music production, and all of them are substantially worse
         | for the musician than "assign a creator's monopoly to the
         | musician and civil liabilities for those who fail to negotiate
         | proper licenses to it". Free markets are designed to allocate
         | scarce goods; with the corollary any person whose work is not
         | scarce does not get to eat. Ergo, if you want certain kinds of
         | nonscarce goods to be made, you need to make them artificially
         | scarce for some limited period.
         | 
         | This is particular to creative works. Free Software gets around
         | this with lots of subsidies, commodified complements, corporate
         | investment, and occasional labors of love. The fact that
         | software is highly collaborative and that licenses like the GPL
         | exist helps. A handful of collaborating developers can produce
         | a spare-time project that is actually useful to other people
         | who will sponsor development of further improvements to the
         | project. Music does not work that way.
        
           | falcolas wrote:
           | I largely agree with this.
           | 
           | If you want music to be libre, someone needs to subsidize the
           | cost of creation: The wages for the musicians for one-two
           | months, the wages of the technicians, the rent for the
           | studio, and also subsidize the cost of writing the song in
           | the first place.
           | 
           | The current paradigm amortizes those costs among all
           | listeners of a song, with some profit for the facilitators.
        
             | ccsnags wrote:
             | An artist isn't entitled to having their work funded unless
             | someone voluntarily funds it. This does not require legal
             | fiction.
             | 
             | Entire genres of music have been created from inexpensive
             | musical equipment and free software. Art has never been
             | more accessible to the people than it is now.
        
               | falcolas wrote:
               | > An artist isn't entitled to having their work funded
               | unless someone voluntarily funds it.
               | 
               | Then we simply never get their work. Some people would
               | absolutely continue to create for the fun of it, but
               | they'll remain the minority.
               | 
               | Movies you'd watch in a Theater? Completely gone.
               | Commercially funded TV shows, gone. A vast majority of
               | books, written by full time writers and researchers,
               | gone.
               | 
               | And I'll also posit that most music would go away too.
               | Even the amateurs I know expect to be paid for a gig.
               | Most musicians are not willing to busk for a living.
               | 
               | And, don't forget, software development relies heavily
               | upon Copyright as well (licenses, your work-for-hire,
               | etc).
        
               | breck wrote:
               | If everyone who threatens to stop creating content if
               | they can't enslave ideas, were to stop creating content,
               | the world would be a better place.
               | 
               | The idea that people would stop creating is absurd. I
               | work in Cancer Research and the absolute least
               | contributing people in the medical industry are the ones
               | obsessed with patenting and copyrighting their work,
               | which is usually garbage and of frivolous value compared
               | to the hard grunt work of millions of unsung heroes
               | grinding it out for non-monopoly wages.
               | 
               | I was an engineer at Microsoft and the average code there
               | was total garbage compared to the open source code
               | powering top public domain projects.
               | 
               | And no modern epic is significantly better than Ilias.
               | 
               | Every letter we are using; every word; every bit of
               | tooling; was made by other people in a long pyramid
               | stretching back tens of thousands of years and billions
               | of people wide. All of us are putting grains of sand on
               | top.
        
               | falcolas wrote:
               | > the world would be a better place.
               | 
               | Really? Sounds pretty terrible to me. Few books. Few
               | videogames. No movies. No TV shows. Most of the internet
               | obliterated. Any content that is created is copied and
               | regurgitated so much you'd be hard pressed find out who
               | actually created it.
               | 
               | I personally _like_ consuming entertainment. I work with
               | the creative side of my brain all day long, and being
               | able to go home and turn it off with some relatively
               | mindless entertainment (my form is a combination of books
               | and videogames). I 'd hate to come home one day and only
               | have a zero budget, poorly tested, game to play, or a
               | book that I've already re-read enough to quote it by
               | memory.
               | 
               | > And no modern epic is significantly better than Ilias.
               | 
               | Pure opinion. And in any case, there's only one Iliad.
               | There's hundreds of other "modern" epics out there - many
               | of which I find more entertaining, though they are not as
               | literarily significant.
               | 
               | > the open source code powering top public domain
               | projects
               | 
               | Is it worth re-iterating that all of the open source
               | licenses is supported by copyright protections?
               | 
               | > All of us are putting grains of sand on top.
               | 
               | Which obviously has its own value, as aptly demonstrated
               | by the entertainment industry as a whole being valued in
               | the trillions of dollars.
        
               | breck wrote:
               | > Really? Sounds pretty terrible to me. Few books. Few
               | videogames. No movies. No TV shows. Most of the internet
               | obliterated.
               | 
               | This is such bullsh _t. First of all, the f_ cking
               | Internet is public domain tech (DARPA, Web). Second, the
               | evidence is overwhelming that people will create vast
               | amounts of content without any idea enslavement rights.
               | According to your logic we wouldn't have janitors
               | cleaning rooms if they couldn't collect a toll in
               | perpetuity.
               | 
               | > Any content that is created is copied and regurgitated
               | so much you'd be hard pressed find out who actually
               | created it.
               | 
               | Here's a hint: no one. You created zero of the 25 letters
               | you used in that comment, zero of the punctation marks,
               | zero of the 184 words. You strung some words together in
               | a unique arrangement, but you are piggybacking on a vast
               | amount of effort which you contributed effectively zilch
               | too. And you think your contributions deserve special
               | treatment? What a f*cking joke.
               | 
               | > Is it worth re-iterating that all of the open source
               | licenses is supported by copyright protections?
               | 
               | I don't support licenses. Licenses are for losers. Public
               | domain is the only game that matters. Keep in mind that
               | the tool we are using to communicate was made public
               | domain by Tim Berners Lee.
        
               | falcolas wrote:
               | > According to your logic we wouldn't have janitors
               | cleaning rooms if they couldn't collect a toll in
               | perpetuity.
               | 
               | To torture this analogy further, in the world you're
               | presenting, a janitor has to beg for tips or rely upon
               | their fans to get paid for their efforts.
               | 
               | > And you think your contributions deserve special
               | treatment?
               | 
               | This assumes that there's no original thought, or
               | production, or anything else in this day and age. I
               | fundamentally disagree with this. To use a popular
               | example, the archetypes presented in "A Game of Thrones"
               | may have existed for decades or centuries, but they're
               | presented in a wholly original story. A story which would
               | not have existed in the past, present, or future if it
               | wasn't for GRRM, and by extension, his ability to work
               | full time writing his books.
               | 
               | > Keep in mind that the tool we are using to communicate
               | was made public domain by Tim Berners Lee.
               | 
               | No, the tool we're using was originally created by Paul
               | Graham, and is not public domain.
               | 
               | In any case, it appears that there are irreconcilable
               | differences in the foundations of our opinions (and
               | politeness). I wish you luck.
        
               | cwkoss wrote:
               | You are also discounting the cost to society for all the
               | works of art that are created due to copyright.
               | 
               | Copyright criminalizes remix culture and leads to evils
               | like Youtube arbitrarily giving strikes because 5 seconds
               | of a taylor swift song was in the background, suppression
               | of criticism, and depriving the poor from access to
               | modern culture.
        
           | cwkoss wrote:
           | Music is a passion and hobby for many. People would still
           | make music if the didn't make money from it.
           | 
           | Might have lower production quality and less glitzy
           | marketing, but the vast quantity of free music out there is
           | proof that many will continue making music regardless of
           | financial incentive.
        
         | dpatterbee wrote:
         | This is an interesting take I haven't heard much before. Could
         | you expand on what the alternatives are?
        
           | jedimastert wrote:
           | Other than performance and merchandise, I think Patreon is
           | really the big ticket right now.
           | 
           | I suppose, in reality, this has been the case for around 3
           | decades now. Unless you have the marketing department, you
           | don't make money from music sales.
        
             | falcolas wrote:
             | Patreon works because everybody's not on there. If I tried
             | to give $1 to every artist that I listen to on Spotify, I'd
             | be paying out hundreds of dollars a month. Throw in books,
             | videos, movies, and TV shows (all of which rely upon
             | copyright), I'd be paying out thousands of dollars.
             | 
             | I could scale back my contribution to each artist to
             | pennies each (which doesn't actually work, given the $0.30
             | cent/3% CC cut), but then we're back to where we are today.
             | 
             | Patreon (and their ilk) is not tenable at scale.
        
           | dontblink wrote:
           | Mostly merchandising and touring.
        
             | falcolas wrote:
             | How does an author do this? An artist? How much money can
             | the 20th musician in a day doing a tour expect to really
             | make? An orchestra?
             | 
             | How about movies? They'd cease to exist (barring a few
             | youtube-quality productions).
        
           | breck wrote:
           | It's an exciting time for alternatives.
           | 
           | Patreon, Twitch, Cameo, OnlyFans, et al, are providing ways
           | to connect with your community and earn a living through
           | their support, which is not only very important during
           | shutdowns when live events are harder, but will be a long
           | term trend.
           | 
           | On the production side costs continue to drop, and if we
           | #abolishcopyright cost of living across the world will drop
           | dramatically, so will be easier to balance the budget.
        
             | toyg wrote:
             | _> if we #abolishcopyright cost of living across the world
             | will drop dramatically_
             | 
             | I sincerely doubt that. Food and shelter won't magically
             | cost less because there is no copyright.
        
         | [deleted]
        
         | jmercouris wrote:
         | You'll have to enlighten me. What are the better ways? Why
         | should you not own copyright to that which you produce?
        
           | toyg wrote:
           | _> Why should you not own copyright to that which you
           | produce?_
           | 
           | You don't want to use that line of argument, since authors
           | and musicians are among the very few categories of workers
           | with that privilege. As much as I agree with you (and
           | actually think that privilege to be expanded to _all_
           | workers), you won 't find any solidarity from the common
           | public on that line.
        
             | falcolas wrote:
             | > since authors and musicians are among the very few
             | categories of workers with that privilege
             | 
             | Don't forget software developers. All of our various
             | licenses (and even our work-for-hire for various companies)
             | relies upon copyright as well.
             | 
             | There's also reporters, photographers, journalists, YouTube
             | content creators, TV, and movies, just to name a few off
             | the top of my head.
        
               | toyg wrote:
               | In practice, very few of these actually benefit from
               | copyright. Most do work-for-hire, which is effectively a
               | negation or renounce to one's IP rights; and opensource
               | is effectively a way to do the same. The ones who can
               | actually extract direct benefit from IP are " the 1%", so
               | to speak.
        
             | justynadorsz wrote:
             | This is interesting. I didn't know that most people were
             | against copyright.
        
           | juancn wrote:
           | Copyright and patents creates artificial scarcity. The things
           | protected are not scarce, they are abundant. Ideas and
           | information are easy to copy/reproduce.
           | 
           | So we built a fake framework on top of something plentiful
           | and cheap to copy, to make it more expensive so some people
           | can make money out of it.
        
             | falcolas wrote:
             | I agree, they're easy to copy and reproduce. But more
             | importantly, they are _not_ easy to produce in the first
             | place.
             | 
             | How do you suggest an author (artist, musician, etc) make a
             | living, if it takes them 6 months of normal working hours
             | to produce a book and they get an expected $0 of revenue
             | from that book?
        
               | ccsnags wrote:
               | Spending time on something people aren't willing to pay
               | for is always a waste of time, whether you're writing a
               | book or digging holes.
               | 
               | We need to stop assuming that having no copyright means
               | that the work cannot be monetized. It just can't be
               | monetized as if it was a physical object or service
               | rendered. Vinyl records, tee shirts, patronage, book
               | signings, lectures, anything that isn't copyright
               | dependent can be monetized easily.
               | 
               | The fans of art are aware that paying for it will help
               | create more art they like. This is a personal connection
               | that the fan has with the artist and keeps the art
               | accessible for the casuals.
        
               | falcolas wrote:
               | We had that once upon a time (the original version of
               | Patronage), and it resulted in some, but not very much,
               | artwork in the grand scheme of things. Nowhere near the
               | amount we enjoy today with our spare-change
               | subscriptions.
               | 
               | Copyright also allows more creators to create without
               | requiring them to be a live personality as well; to split
               | their time between creating and hustling for money.
        
               | donovanian wrote:
               | > and it resulted in some, but not very much, artwork in
               | the grand scheme of things
               | 
               | I'm not sure I follow, my understanding is that
               | patronage, say from the Medici family, led to a
               | proliferation of art.
        
               | cwkoss wrote:
               | Maybe NFTs
        
             | kmeisthax wrote:
             | You're slightly wrong: _copies_ of copyrighted works are
             | abundant. The actual works themselves are scarce.
        
               | ccsnags wrote:
               | Now we're getting into the simulacrum. If a work is
               | entirely digital, what is the difference between the
               | original and the copy?
        
               | adwn wrote:
               | > _If a work is entirely digital, what is the difference
               | between the original and the copy?_
               | 
               | The difference is that the original instance of the work
               | potentially required considerable time and money, whereas
               | its copies are essentially free to produce. There's no
               | difference between the bits of the "original" and the
               | bits of each copy, but concluding that copies of a work
               | should be free for all because the act of creating that
               | copy is free, is fallacious and intentionally misleading.
        
               | falcolas wrote:
               | The cost of the labor put in to create the original.
        
               | ccsnags wrote:
               | What is the cost if I did it for free?
        
               | falcolas wrote:
               | What well-researched book have you written for free?
               | 
               | What hit album have you (and your band-mates) written and
               | performed for free?
               | 
               | What feature-length, CGI enhanced movie have you
               | produced, cast, and distributed for free?
               | 
               | What TV show have you produced, cast, and distributed for
               | free?
               | 
               | I'm not trying to call you out specifically, but your
               | post uses "I", so I'm responding appropriately. For
               | better or worse, garage bands, open source developers,
               | and patreon writers are the vast minority of copyright
               | users.
        
         | thatguy0900 wrote:
         | Well, in the article it says that they are doing this partly
         | because coronavirus has wiped out a lot of live music. If they
         | can't stream for profit and they can't do live shows what do
         | you suggest?
        
           | cwkoss wrote:
           | Get a job that pays. Not everyone is talented and lucky
           | enough to be paid a comfortable wage for the products of
           | their hobbies.
        
         | Taylor_OD wrote:
         | Your bringing up another issue entirely. What do you think
         | about the unionization effort?
        
           | adwn wrote:
           | > _Your bringing up another issue entirely._
           | 
           | That's the poster's modus operandi here: he doesn't miss an
           | opportunity to advertise his two favorite topics -
           | abolishment of intellectual property and his own whitespace-
           | based data notation - whether it's on-topic or not.
        
             | breck wrote:
             | Aloha anonymous coward,
             | 
             | The correct term is #ImaginaryProperty
             | 
             | Yours truly, Breck Yunits
        
         | RhodesianHunter wrote:
         | I think this is a bit like the 2A argument.
         | 
         | There's a really happy medium that neither side ever talks
         | about. Just dramatically reduce the legal length of copyrights.
         | One year maybe?
        
           | mchusma wrote:
           | The US Constitution set copyright originally as 14 years,
           | extendable by another 14. This sounds about right.
           | 
           | I think artists would not be dissuaded from working and would
           | monetize the roughly the same with 20-30 year copyright
           | terms.
        
             | xoa wrote:
             | > _The US Constitution set copyright originally_
             | 
             | No, that's not correct. 14 years was the original term set
             | by law not the Constitution, and the difference is
             | important. Copyright and patents do not formally exist in
             | the US Constitution, because IP was a contentious issue
             | even then. Instead there is a clause that _empowers_
             | Congress to decide to do so if they wish, but there is no
             | requirement. Article 1 Section 8 Clause 8 says Congress
             | shall have the power:
             | 
             | > _" To promote the Progress of Science and useful Arts, by
             | securing for limited Times to Authors and Inventors the
             | exclusive Right to their respective Writings and
             | Discoveries."_
             | 
             | But there is nothing specific set out in the Constitution.
             | If there was, it'd be near impossible to change at this
             | point, for better or worse. On the one hand that might mean
             | we'd have much shorter terms then now. On the other hand,
             | it would also mean that if the courts had gone similarly
             | badly in deciding stuff like software patents it'd be near
             | totally hopeless, rather than merely very difficult, to
             | reform. But since it's all down to "merely" legislation
             | Congress could completely change things around on a dime
             | through normal law if there was the political will for it.
             | Though note another complexity is that the US has signed
             | treaties around certain parts of IP as well, including
             | minimum terms. While those too can be renegotiated, or
             | revoked by Congress, it's a higher domestic political and
             | geopolitical bar.
             | 
             | There are lots of interesting reform proposals, within
             | various bounds of feasibility. Hopefully one of them can
             | take off at some point and momentum can slowly start
             | building to go in the other direction then the maximalist
             | positions taken for the last few decades.
        
             | ccsnags wrote:
             | Most artists work for free. Some of the best artists I know
             | have day jobs.
             | 
             | The promise of fame and fortune is a product of an industry
             | that is based on physical media being the only way to share
             | information. The bit has liberated music for everyone yet
             | we cling to the past.
        
               | falcolas wrote:
               | > Some of the best artists I know have day jobs.
               | 
               | Most artists with regular output do not. The problem with
               | a day job is it takes away from what a person can
               | produce. For example, a content creator (i.e. YouTuber)
               | with a day job is lucky to get out one-two videos a week.
               | A full time content creator can produce one to two videos
               | a day, often with better quality since they can focus on
               | the work.
        
               | ccsnags wrote:
               | With the state of advertising on youtube, patreon, ad
               | reads and super chats are a more reliable way to monetize
               | than copyrighting the video.
               | 
               | Youtube content creators are a good example of people
               | monetizing art without the need for copyright. Donations
               | and voluntary funding are key parts of the content
               | creator world already. Copyright is not particularly
               | important unless they are getting strikes from a
               | copyright troll.
        
               | falcolas wrote:
               | Without copyright, someone will just take their output,
               | cut out the ad reads and repost their output with their
               | own embedded ads.
               | 
               | This already happens today (Linus with his tech tips is
               | only one example); without the ability for creators to
               | fight back, it would only get worse.
               | 
               | EDIT: That this is unpopular doesn't make it wrong. Even
               | beyond the (currently) illegal reposting, there are lots
               | of rights aggregators who pay viral content creators, and
               | re-sell their content to TV channels (Chive TV,
               | anybody?). The "pay creators" part goes away if you take
               | away copyright.
        
             | RhodesianHunter wrote:
             | That seems quite long to me. 28 years is half of the
             | average lifetime. Producing a certain sequence of sounds
             | entitles you to own those sounds until people not yet born
             | are full adults?
        
               | notriddle wrote:
               | That doesn't seem too awful. It basically means
               | everything from the 80's or early 90's goes into the
               | public domain.
               | 
               | After that much time, it's a crime keeping the copyright
               | monopoly: it's either exhausted all possible profit, so
               | there's no point, or it's been around long enough that
               | everything after it is influenced by it, like season 4
               | and earlier of The Simpsons, and the original Star Wars
               | movies.
               | 
               | In other words, that seems like a decent cut-off point to
               | say that if you still want to hold copyright on them,
               | then you're rent-seeking off of stuff that has kinda
               | become "cultural identity" stuff, specifically because
               | it's what people grew up watching and influenced by.
        
         | ccsnags wrote:
         | Artist and Dev here.
         | 
         | Yes to this. Having an imagination means you can think of
         | different ways to monetize your work that isn't trying to put
         | an imaginary wall around ideas and information.
        
           | justynadorsz wrote:
           | Also, artist and dev here. I don't agree. First, ideas are
           | not copyrighted anyway. Second, you are both vague about
           | those "different ways" of earning. Please expand on that.
        
             | ccsnags wrote:
             | Patrons. Sell merch. Sell tickets. Super chats.
             | 
             | Patents and copyrights are literally ideas put on paper
             | that one is claiming legal dominion over. Unless you are
             | making physical media, your products are your ideas.
             | 
             | It's a tradeoff, not a cure for problems artists face. The
             | current system favors wealthy institutions over artists. No
             | one is willing to donate to a giant record company but fans
             | of the work will readily give money to the artist just
             | because they like them. Patronage is a better system for
             | artists.
        
               | falcolas wrote:
               | > Patrons. Sell merch. Sell tickets. Super chats.
               | 
               | None of those scale. I pointed this out elsewhere, but
               | how much money would a creator on Patreon make if all
               | creators were on Patreon, hoping to make at least $1 per
               | month per follower? Musicians alone would push me into
               | the hundreds of dollars (which really means a vast
               | majority of musicians would make nothing from me; less
               | than they're getting via Spotify).
               | 
               | How much are you willing to pay for tickets to the 20th
               | tour in a week that's in your area? For their merch? As
               | for myself, precious little. Probably not enough to even
               | cover their tour costs, let alone the cost of producing
               | the music (and merch) in the first place.
               | 
               | > Patents and copyrights are literally ideas put on paper
               | that one is claiming legal dominion over.
               | 
               | Patents and copyrights make it practical to cover the
               | costs of realizing those ideas in the first place. Ideas
               | aren't worth anything until they're realized, be it in
               | writing for a book, or a performance for a song.
               | 
               | Books often take a minimum of 6 months of full time
               | effort to produce. There's multiple people involved - the
               | writer, the editor, the proofreader, the typesetter. How
               | do they pay for it if they can't make any money from
               | actually selling the book?
               | 
               | Music takes weeks or months of effort in a studio to
               | produce. How do you recoup those costs if you can't sell
               | the output?
        
               | cwkoss wrote:
               | The majority of artists will not be able to support their
               | entire lifestyle with their passion.
               | 
               | Same as it is currently and ever was.
        
               | justynadorsz wrote:
               | "ideas put on paper" is oversimplifying it. There's a lot
               | more work and time involved in creating art. It's not
               | like: I have an idea, I "put it on paper", and 10 minutes
               | later I have something to "claim dominion over".
        
               | Spivak wrote:
               | How do you keep a screen printing shop from just selling
               | your merch for cheaper than you? In your hypothetical
               | they'll always be able to undercut you since they don't
               | have to support anything but screen printing business
               | with the profits while you have to fund art production?
               | 
               | The main point is that every avenue of monetizing art is
               | create something that isn't your art that _is_ scarce and
               | then sell that. Why not just have a system where you can
               | make the art itself scarce?
        
         | adwn wrote:
         | > _#abolishcopyright_
         | 
         | This isn't Twitter. I'm not sure what you hope to accomplish by
         | using hashtags on HN, but it makes you look like an immature
         | child - similar to writing "M$" in the 90s and early 00s.
        
           | ccsnags wrote:
           | #thisguyknowswhathashtagsmeanbutisajerkaboutit
        
             | adwn wrote:
             | > _#thisguyknowswhathashtagsmean[...]_
             | 
             | I don't, actually. Please, enlighten me as to the purpose
             | of hashtags on HN.
        
           | breck wrote:
           | Thanks for the feedback. I understand that Twitter supports
           | hashtags better, so that will be my preferred place to post
           | things like #AbolishImaginaryProperty #EndPatents
           | #BringBackNapster #LiberateIdeas
        
       | 3saryHg6LP2e wrote:
       | The record labels are a bigger problem than Spotify; they set the
       | streaming prices and take a big cut.
        
         | mcfedr wrote:
         | That and copyright. If spotify didn't have to pay anyone to
         | stream the music I listen to by dead artists there would be a
         | lot more to go around with the people writing music today.
        
         | kevincox wrote:
         | Exactly. If the record labels thought the price was unfair they
         | wouldn't see the rights to Spotify.
         | 
         | The unfortunate part is that the artists have basically no
         | power when bargaining with the record labels.
        
           | lettergram wrote:
           | Let's be honest, you aren't _required_ to use a record label.
           | Record labels just advertise, which definitely blow up some
           | musicians.
           | 
           | In contrast, take the rapper Tom McDonald, his music actually
           | hit the top 100 charts[1][2] and he's not signed to anyone.
           | Just him and his girlfriend creating music. Was trending as
           | the #1 download on iTunes for a couple weeks, etc.
           | 
           | Artists make a deal with the devil, make more money, then
           | complain. Yet, with today's ability to distribute - it's not
           | required.
           | 
           | I do think there should be an update to the spotify payout
           | system, but Spotify doesn't have negotiating power; they need
           | the record labels. With the record labels Spotify can get
           | improved music, etc. Spotify is paying for the privilege
           | that's why the smaller artists aren't making very much (the
           | premium payments go to record labels).
           | 
           | [1] https://en.wikipedia.org/wiki/Fake_Woke\
           | 
           | [2] https://www.youtube.com/watch?v=2l6JUNFAJ9o
        
             | curryst wrote:
             | In fairness, Tom MacDonald gets a lot of external publicity
             | from conservatives; he's mostly a right-wing political
             | rapper.
             | 
             | I've seen a big rise in conservative rappers on YouTube.
             | I've got a conspiracy theory that the GOP is funding them
             | like a record label. If so, it's a sweet deal for artists.
             | The GOP cares far more about cultural effects than they do
             | the money from the music.
        
               | anoonmoose wrote:
               | Yeah, Chance The Rapper is a more organic and less
               | political example of a rapper making it without a label.
        
               | cameroncairns wrote:
               | It wouldn't be the first time.
               | 
               | https://www.youtube.com/watch?v=jUNuNilqrDQ
               | 
               | It's hard to find a reliable source here but there was
               | right wing folk music being made to combat the threat of
               | communism in the 60s.
               | 
               | https://blog.wfmu.org/freeform/2006/01/janet_greene_th.ht
               | ml
        
               | lettergram wrote:
               | I don't doubt there is some of that, probably from all
               | sides frankly.
               | 
               | However, the major point is that you don't need the
               | distribution.
               | 
               | Louis CK famously released a comedy special online with a
               | download and just asked people to pay and not copy and
               | share. He said he made more money off that than any other
               | special he'd done.
        
         | cannabis_sam wrote:
         | yeah, these artist seem kinda clueless of this reality...
         | 
         | Courtney Love realized this over 20 years ago:
         | https://www.gerryhemingway.com/piracy.html
        
       | l1am0 wrote:
       | Offtopic & Shameless self-plug:
       | 
       | Help small artists by listening more to their music.
       | 
       | "How do I find small artists on Spotify" you ask? That's what I
       | did build https://tastemaker.cc/newcomers for.
       | 
       | It is a playlists showing you 6 new small (I call them newcomer)
       | artists every day :D
        
       | redmattred wrote:
       | A lot of the money in the industry is made by private music
       | royalty funds that buy the rights to music and earn proceeds on
       | their usage. Its a good investment (especially during covid) not
       | available to retail investors.
       | 
       | There is financial innovation that could happen to improve the
       | outcomes for artists.
       | 
       | Many asset classes previously unavailable to the public (private
       | reits, real estate syndications, art investing, wine investing)
       | have been brought downmarket with crowdfunding.
       | 
       | There is green space for a music royalty fund that optimizes for
       | artist benefit over profits and is available to the public.
        
       | goatcode wrote:
       | Are large gatherings allowed at all the planned locations? This
       | seems a little tone-deaf.
        
       | motohagiography wrote:
       | I grew up thinking record companies were a confederacy of
       | scumbags, and my attitude hasn't changed that much, but the
       | question of what the fair price for a recorded song should be has
       | been clouded by a mix of cynicism on the part of publishers, and
       | magical thinking on the part of artists.
       | 
       | Tech VC is an analogy for the risk model of record companies,
       | where you have money from investors that needs a productive
       | asset, and your risk/return appetite is being willing to accept
       | that most of your bets will return zero, with just 2% of your
       | investments yielding huge (10x+) multiples and 80% of your
       | returns.
       | 
       | Whether you are investing in bands making albums or entrepreneurs
       | building startups, there seem to be direct similes for record
       | sales, publishing rights, merch, side projects, and intellectual
       | property. The point is artists make their money touring with
       | shows, which is basically a job, where the record
       | company/investor makes their big money because they get the
       | benefit of having risked capital with leverage. A founder working
       | for investors is analogous to a band touring in support of album
       | sales. Your upside is probably a job with a lifestyle and a
       | bonus.
       | 
       | Which comes to the question of what a good price for a recording
       | could be. Musicians generally don't take very much risk or use
       | leverage that would yield investor-size returns. 99.9% of music
       | is crap. The distribution curve of quality is really steep and
       | long tailed, so if you invest in a given band, you are taking a
       | <1% chance of ever seeing your money again. That's why record
       | companies and VC make money. They're the producers. They're
       | creating a portfolio spread over a wide pool of risk. If you
       | write some songs, arguably, you have ventured nothing of value
       | until someone discovers it. The music platforms provide this
       | discovery. Sure, I wish I could earn the an equivalent living
       | making music or writing as I do in tech, but since I'm not a
       | superstar talent, I manage that expectation and accept
       | comfortable mediocrity. As the amortized capital risked by a
       | musician averaged across all the other musicians in their genre
       | on a given song, the price of a stream above tiny fractions of a
       | penny is generous. The missing feature seems to be a way to sell
       | the licensing and publishing rights, where I can pay $100 to use
       | it in a video.
       | 
       | I get the sense that organizing spotify artists to complain is
       | yet another way to hustle and exploit them, but this time for
       | political ends instead of financial ones.
       | 
       | edit: there is probably a producer/product-manager analogy to be
       | made as well, but will leave it there.
        
       | kangaroozach wrote:
       | The model should be like Medium.
       | 
       | Allocate peoples monthly membership in accordance to their
       | listens.
       | 
       | If one month I listen to 100 streams of Bob Dylan and thats it,
       | then he should get my entire $7.00 instead of just a few cents
       | for my small amount of streams.
       | 
       | https://qz.com/1660465/the-way-spotify-and-apple-music-pays-...
        
         | disantlor wrote:
         | This seems almost too simple & good to be true. The counter
         | points in the linked article mention that its too
         | "computationally expensive" to calculate the payments, and the
         | additional management costs could outweigh the benefit to
         | smaller artists... how could that possible be true?
        
           | Aissen wrote:
           | It's one of the demands, the "user-centric" model. It's
           | mostly because the major record labels (who have the top
           | artists) might see a reduction of revenue. But even that was
           | disproved in a recent french study:
           | 
           | https://cnm.fr/wp-
           | content/uploads/2021/01/CNM_UCPS_SyntheseF...
        
             | natdempk wrote:
             | Is there a translation of this report anywhere?
        
               | Aissen wrote:
               | Try https://translate.google.com/translate?sl=fr&tl=en&u=
               | https:/... although it doesn't have graphics.
        
           | natdempk wrote:
           | It's simply not true. The whole business model of Spotify is
           | that of any other internet business, selling a zero-marginal-
           | cost good for a subscription fee. It would be more
           | complicated to implement a per-user breakdown, and maybe
           | slightly more expensive to run that analytics pipeline, but
           | at scale there's no way the additional management costs would
           | outweigh the benefit to smaller artists. The cost of that
           | more advanced analytics job is going to be absorbed over the
           | entire user base to the point where it effectively costs
           | nothing in aggregate. The real counter point is probably that
           | it was either easier to implement the current solution (from
           | an engineering standpoint this is true, it's much easier to
           | aggregate and scale their payment pipeline once per-geo-
           | region) and there has been no push for change, or it favors
           | larger artists and labels who have the bargaining power with
           | Spotify.
        
           | mcfedr wrote:
           | It's clearly doable, and we recently saw that soundcloud
           | moved to this model of calculating
        
           | lux wrote:
           | Sorry, but there are plenty of developers on here (myself
           | included) who can easily confirm that "too computationally
           | expensive" is just BS so they don't have to change.
           | 
           | Proof: Soundcloud is doing exactly this, so it's absolutely
           | possible.
           | 
           | https://community.soundcloud.com/fanpoweredroyalties
           | 
           | This is all so they can keep major labels happy (several of
           | whom own a stake in Spotify) because the labels don't want to
           | lose the free money gravy train they're making on the backs
           | of artists they don't even represent, and Spotify doesn't
           | want to lose the majors.
        
         | paxys wrote:
         | This is never going to happen because the top artists and their
         | labels would never agree to it, and they are the ones bringing
         | in the users.
         | 
         | > The research found that in the current system the top 0.4% of
         | artists get around 10% of all revenue, but they would only get
         | about 5.6% of revenue under a user-centric system
        
       | giuliomagnifico wrote:
       | Here some photos of the demonstration:
       | https://www.hotpress.com/music/union-of-musicians-and-allied...
        
       | dan-robertson wrote:
       | I always liked the idea of nonlinear revenue, eg paying
       | proportionally to the cube root of the number of streams. It
       | would allow smaller artists to get a greater proportion of the
       | proceeds.
        
       | tschwimmer wrote:
       | The hard truth in music (and in many creative industries) is that
       | there's a huge oversupply (many musicians are willing to make
       | music for free or very cheap) and demand has a low willingness to
       | pay. The result is that there isn't much money to be made for
       | musicians. In my mind, there's really no way around this fact.
       | You can argue (as these folks are) that Spotify could take a
       | smaller cut and give more to musicians. While this is technically
       | true, Spotify is never going to do this. It's a strictly
       | distributive transaction: musicians make more money, Spotify
       | makes less.
       | 
       | Their other options are not so good either. Musicians can build a
       | Spotify clone that's more favorable to artists. Nominally, this
       | sounds like Tidal. The problem with Tidal is that nobody wants to
       | spend that much money on a subscription. Even with the high
       | profile artist exclusives it has less than 5% market share.
       | Beyond the business model, building a Spotify clone is difficult
       | to execute, especially for musicians and not software folks.
       | 
       | You can somehow lobby to outlaw streaming and go back to selling
       | songs and albums individually. This would definitely hurt Spotify
       | but probably doesn't help musicians too much. Potentially the top
       | 1% of musicians are better off as they're able to capture more
       | value but the long tail is way worse as nobody discovers their
       | music anymore.
       | 
       | An interesting solution might be collective action. If enough
       | musicians banded together and pulled their catalogs from Spotify,
       | I could see that having a big negative impact on Spotify's
       | revenue. There are a few bands that if their catalogs were off
       | Spotify, I'd probably cancel. This would be effective but is
       | probably too difficult to coordinate.
       | 
       | Overall, the problem for musicians is one of economics. Too many
       | people willing to make music, not enough willing to pay. In other
       | words, you can't push a rope. If you are a musician, my strong
       | advice to you is to get comfortable with doing it for a reason
       | other than money. Otherwise, you're in for inevitable
       | disappointment.
        
         | nvarsj wrote:
         | I don't think it's as simple as supply and demand as you
         | suggest. The behavior of record companies and distributors is
         | completely atrocious in the music industry. It's monopolist
         | behavior, and it completely distorts the actual market. If
         | artists got the majority of royalties from each play of their
         | song, things would be substantially different.
        
         | ksec wrote:
         | >Overall, the problem for musicians is one of economics. Too
         | many people willing to make music, not enough willing to pay.
         | 
         | Exactly. And we have finite amount of time and attention. Just
         | like the head of Premiere League in UK said E-Sport ( Gaming )
         | and other entertainment like Netflix are their competitors. And
         | we have less time for music. It is not only an abundance of
         | music, but also in other entertainment.
         | 
         | K-POP essentially made their music and MV for free on YouTube.
         | While making money on tours, merchandise, and show appearance.
         | 
         | I sympathies for them. But their problem has nothing to do with
         | Spotify at all.
        
           | analog31 wrote:
           | Microsoft inadvertently played a similar game in the 80s and
           | 90s, by having multiple price tiers for similar products in
           | different markets. You could buy Office at a computer store
           | for $200, or get it bundled with a new computer for $20, or
           | for "free" by copying the disks from someone. (Don't remember
           | the exact prices). Then there were "upgrade" tiers and an
           | academic discount. The free tier made it impossible for
           | anybody to compete with them, thus protecting their market in
           | the paid tier. They even tried competing with themselves, via
           | "Microsoft Works," and gave up.
           | 
           | Creative works are a very strange market, because they don't
           | fit any semblance of a demand curve. For instance, there's no
           | such thing as a song that's slightly cheaper than a Taylor
           | Swift hit, with slightly higher sales. You can't compete with
           | Taylor Swift on a price/demand curve. Also, you can't compete
           | with free.
           | 
           | There's still a bit of a demand curve for live music. For
           | instance you can pay less to hear my band than to hear Taylor
           | Swift. This may actually be why playing live is still a
           | better economic deal for most rank-and-file musicians. It's
           | one reason why I'm presently un-recorded. I have no need to
           | know how much my music is loved by people who think I don't
           | deserve to get paid.
        
         | herbturbo wrote:
         | Yeah I think it's easy for up and coming musicians to blame
         | Spotify for their financial woes, but as someone who was an
         | aspiring musician in the 90s I can tell you it was no picnic
         | back then. Everyone I knew was broke, so the only way to make a
         | record was to get signed, and that involved playing shows in
         | front of A&R people which meant finding venues etc - all on
         | your own dime. If you did manage to get signed and get an
         | advance, you probably used it to buy better instruments and
         | maybe pay rent for a month or two but it didn't last long. Then
         | if you were lucky and the label decided to distribute your
         | stuff, you'd make about a dollar between you for every full
         | length album you sold. Music has never been about making money.
         | You might as well play the lottery if that's your goal.
         | 
         | And as a consumer of music, I am very happy to be paying $14.99
         | a month for access to a collection that would have been
         | virtually impossible for an individual to assemble 20 years
         | ago. Music has been opened up to people in a way that did not
         | exist before Spotify. Also, a good deal of the music I listen
         | to is stuff I had already bought on CD or vinyl years before,
         | so those artists are getting paid twice for me listening now.
         | 
         | Bottom line is it's always been hard to break through into
         | making money from music. Nothing has changed except the way
         | it's distributed.
        
           | dimgl wrote:
           | I realize this is tangential, but I'm currently making a
           | video game. Is the video game industry similar? I worry that
           | I won't get much return on my investment...
        
             | mortenjorck wrote:
             | Gaming, even indie gaming, follows a power law just like
             | everything else:
             | https://arstechnica.com/gaming/2020/04/ars-analysis-80-of-
             | st...
        
             | cwkoss wrote:
             | Yes it is similar, but the smaller indie studio model is
             | much more viable than it was a decade or two ago,
             | particularly for unique games that find deep popularity
             | with a small niche. (See Factorio, Dyson Sphere Program,
             | Coffee Stain Studios)
             | 
             | I think independent video game dev is good for people who
             | want to write the game anyways, and want to monetize to
             | allow them to keep working on it. But, it is very unlikely
             | to make you significant wealth.
        
         | nerdponx wrote:
         | That's not the issue here. The issue is that "number of
         | listens" is not correlated with "payouts from Spotify", even if
         | we ignore the record labels taking their cut.
        
         | paxys wrote:
         | Exactly this. You could remove 98% of music from Spotify and
         | people would still gladly keep paying the $10/mo because they
         | are there for Drake and Taylor Swift.
        
           | herbturbo wrote:
           | Right - and how did Drake and Taylor Swift rise to that
           | level? Same way Madonna and Michael Jackson did. Getting
           | radio play and touring, which took a record label. Getting
           | people to actually give a shit about your music is a problem
           | Spotify isn't going to solve for unknown artists.
        
       | Macha wrote:
       | The ask is 1p/stream. I'm not sure that that's actually
       | sustainable without a massive rise in spotify prices, given the
       | proportion of free users and even paid users that listen to more
       | than 1000 tracks a month. If spotify raises prices, consumers go
       | back to piracy. I'm not sure this will have the effect they want.
       | 
       | Let's imagine a radio station. Something medium sized, about a
       | million listeners. They play a track. Are they paying 10,000 per
       | play, which would be the equivalent rate? I suspect not.
        
         | kdowns wrote:
         | There is also the issue of fraud. Click/Stream farms are
         | already soaking up the artists pool of revenue, and this change
         | would incentivize it more. Justin Bieber recently asked his
         | fans to go to sleep with his new song on repeat, and I'm sure
         | other artists/labels are looking at ways to game the system as
         | well. In my opinion there needs to be a way to pay artists
         | based on first time streams from new accounts.
        
         | brobdingnagians wrote:
         | I listen to far more than 1000 tracks a month, but quite a few
         | of those are duplicates; though the music changes every month.
         | With that listening pattern, it wouldn't make sense for me to
         | pay for 1p/stream.
         | 
         | If the prices increased enough to offset a 1p/stream, I'd jump
         | ship and buy used CDs again, since that would become more cost
         | effective, even with buying a CD a month or so. There are
         | cheaper substitutes to music listening, even if it would be
         | less convenient to discover new music.
        
         | 101008 wrote:
         | If this is not sustainable for the artists, how is this
         | different than piracy? I'd say it is even worse, because people
         | is paying but the money goes to a middleware company that is
         | not paying the right price. It is like buying CDs from the
         | street sellers.
        
           | s0xTester wrote:
           | I mean....radio was never a money maker for acts. It was to
           | get their name out their to make money elsewhere.
           | 
           | Just kinda how the market is setup. I don't think it is
           | unsustainable for artists.
           | 
           | I fucking hate "exposure", but that is literally what
           | radio/streaming is is.
           | 
           | It is never a substantial revenue stream until you hit big.
           | 
           | And with today's tech, radio had to become streaming.
           | 
           | Paying a penny per stream is highly unsustainable for
           | everyone.
           | 
           | What would you suggest to fix it?
           | 
           | I think the system is pretty decent all things considered.
           | Now, Spotify could definitely be better at hyping and pushing
           | new music/low creators....but other than that I don't think
           | they're the enemy here.
        
             | tgv wrote:
             | Streaming isn't comparable to radio. If a penny per stream
             | is unsustainable, perhaps we better go back to just radio.
             | Hyping new music isn't going to do shit about revenue.
        
           | sparkling wrote:
           | > If this is not sustainable for the artists, how is this
           | different than piracy?
           | 
           | The difference is that every artist has a choice if his music
           | lands on Spotify or not - and if he accepts the conditions
           | offered. The main problem of many of these artists is that
           | they signed bad distribution deals with their labels and are
           | giving away a big chunk % of streaming revenues. That isn't
           | Spotifys fault.
           | 
           | Also, according to Spotifys latest financial statement, they
           | are expecting a $200-300m operating loss for 2021, so i find
           | it hard to argue that Spotify is being "too greedy" when they
           | aren't even profitable.
        
           | efsavage wrote:
           | "sustainable for the artists"
           | 
           | There seems to be some idea of what musicians "should" make
           | that other professions don't benefit from. I would like to
           | make the same money from making furniture as I do from
           | writing code, but I can't. I could blame the furniture stores
           | for not promoting me or taking too big a cut or any number of
           | other factors, or I could accept the fact that I'm not an
           | amazing woodworker. But I still make my art/craft because I
           | enjoy it and it's important to me.
           | 
           | There are plenty of ways for musicians to make a living, but
           | I don't see a problem with the fact that spending a month or
           | two a year recording an album is a privilege available to
           | only the most talented subset of them.
        
             | xtracto wrote:
             | You touch a point that has been discussed ad-nauseam before
             | (I saw it in /. a long time ago): Why should artists be
             | perpetually paid for the 40 hours of work they made?
             | 
             | Any normal people, has a pay rate (minimum $0.77 USD/hr
             | where I live). Someone goes to work, works for 8 hours, and
             | gets their 8hr equivalent salary.
             | 
             | But then you have "artists" who work to produce their
             | product for say 80 hours, and then they want to be
             | perpetually paid... not only that, they want to be paid
             | enough to _live_ a lifestyle similar to the person that get
             | 's paid for 40 hours a week job, for 30 years.
        
             | throw_m239339 wrote:
             | Comments such as yours are why I will not let my music be
             | on Spotify as an artist. It's no different than piracy, the
             | user is just paying Spotify for convenience of not having
             | to search stuff on Soulseek themselves...
             | 
             | The fact that slapping some ads on my music on youtube made
             | me earn more than being on Spotify says everything about
             | how bad that deal is for any artist...
        
             | Barrin92 wrote:
             | > I could blame the furniture stores for not promoting me
             | or taking too big a cut or any number of other factors
             | 
             | not only could you but you should. Of course workers over
             | the last few decades have internalised the mindset that
             | they cannot use their power to bargain and that whatever
             | they get is fair and they should just shut up, which is why
             | we tolerate corporate middlemen eating our lunch.
             | 
             | I don't know if a penny per song is realistic or whatever,
             | but going up against Spotify and record labels and trying
             | to negotiate as much compensation for artists as possible
             | collectively is exactly what they ought to do. Also, on the
             | other end, as consumers we need to stop whining when we
             | have to pay twenty bucks instead of ten bucks per month to
             | compensate artists who we spend listening hours to every
             | single week.
        
               | disgu wrote:
               | Spotify is not the corporate middle man. The big record
               | companies are. Any musician is free to not put their
               | music on spotify and to not sell the rights to a record
               | company. They can then let you stream a song for $50 on
               | their website.
               | 
               | It's also absolutely ridiculous that you champion those
               | who want to make more money while also saying that
               | everyone on the other end who wants to spend less should
               | "stop whining".
        
               | Barrin92 wrote:
               | I champion people who produce things, be that artists,
               | software developers, woodworkers or anyone else who
               | builds stuff. Spotify and labels are both distributors
               | and middlemen who profit from the work of others, it's
               | consumers and large platforms that squeeze creators with
               | their greedy mindset of 'as much as possible, for as
               | little money as possible'.
               | 
               | It's long overdue that we move away from this sleazy
               | consumer mindset and start valuing creators.
        
               | disgu wrote:
               | And I value the creators of Spotify who create good
               | software and a great infrastructure for the service
               | they're offering. I think we should move away from this
               | sleazy consumer mindset that the creators of Spotify
               | should not be rewarded for the service they're offering.
        
               | Barrin92 wrote:
               | are you under the impression that engineers at spotify
               | are currently going hungry and working minimum wages? As
               | developers we are already ridiculously overpaid compared
               | to artists. We are the ones who benefit from the shit
               | salaries that musicians make, which is of course why
               | people on this website don't want to hear anything about
               | creators bargaining. It's the people here who benefit
               | from the status quo.
        
               | pietrovismara wrote:
               | > We are the ones who benefit from the shit salaries that
               | musicians make
               | 
               | Not really. We are just being paid enough so that we do
               | not leave for somewhere else.
               | 
               | The ones who really benefit are the shareholders.
               | 
               | Coincidentally, the same people who didn't do any of the
               | work.
        
               | bengale wrote:
               | >The ones who really benefit are the shareholders.
               | Coincidentally, the same people who didn't do any of the
               | work.
               | 
               | This is how capitalism works though. There's no way
               | Spotify can be expected to fundamentally change the
               | economic system they exist in. Reversing that is heading
               | into the realm of revolution.
        
               | shados wrote:
               | Except almost everyone can produce things. You have to
               | produce things people want. Not only that, you need to
               | find the people who want your stuff, especially if its
               | niche.
               | 
               | Yes, I'm a highly paid software engineer. The people who
               | created the company I work for are, however, far better
               | paid.
               | 
               | There's nothing stopping me from quitting and building my
               | own business and selling the software I produce. I have
               | the funds to seed my own startup, so that's not even an
               | issue. That's a shitload of work though, even if I hire
               | people to handle the individual parts. Very quickly I'll
               | be spending more time running a business, finding
               | customers, marketing, dealing with legal crap, etc, than
               | I will producing software. I can also produce software,
               | stick it on github and hope for the best, but there's
               | countless people who do that for shits and giggles (and
               | for free).
               | 
               | Distribution, logistic, and those "middlemen" actually do
               | a lot of work to link the product with the customers.
               | Sure, there's parasites in the middle, organizations that
               | just take licenses and shifts them around without doing
               | anything. You can absolutely make a case to cut those
               | off. But the orgs/software that link products directly to
               | customers who want said products generate tremendous
               | value, and it's often a lot harder to do than produce the
               | good in the first place.
        
               | efsavage wrote:
               | My scenario is not one of power imbalance, it is that I
               | simply cannot create enough economic value doing it to
               | make a living, and I have no right to change anyone
               | else's rules to accommodate for that fact. I cannot make
               | you a bookshelf cheaper than you can buy one at IKEA. At
               | my software developer rate a Billy Bookcase would cost
               | you $1000. It's probably safe to say you aren't going to
               | "stop whining" and pay that.
               | 
               | But you know what I did last week? I didn't mope around
               | at some job I hate complaining about "Big Furniture". I
               | made a bookcase. I also wrote a bunch of software. I can
               | call myself a woodworker, I paid my mortgage, and IKEA
               | sold thousands of Billy Bookcases. All is good.
        
               | ProofByAccident wrote:
               | Your example is a little specious in that a bookcase is
               | very different from a song. The production of one has
               | huge economies of scale, whereas a song doesn't. I agree
               | that producing things competitively is important to
               | improve overall efficiency, but with the music industry
               | you really have a small cartel of massive labels
               | dictating the terms for everyone else (ie. engaging in
               | massively anti-competitive behavior). It seems weird to
               | me that your pro-market ideology leads you to support
               | what (to me) seems to be more or less wage-fixing for a
               | labor supplier (musicians)
        
               | geodel wrote:
               | > small cartel of massive labels dictating the terms for
               | everyone else
               | 
               | Only for those who sign with them. So this brings the
               | question as what's stopping these musicians to make music
               | independently and market using internet along the way
               | avoiding these labels. It is not even the case that music
               | can be listened only via monopolistic mobile app stores.
               | 
               | I have used small independent service providers for tax
               | filing, lawn mowing, cleaning and myriad other services
               | by finding at internet. They are not backed by big
               | corporate chains. Why music has to come from big labels.
        
               | jyrkesh wrote:
               | Price fixing? You can buy music directly from artists for
               | any price you want. I do it all the time on Bandcamp and
               | independent stores, for both digital and vinyl releases.
               | 
               | Piracy set the price at 0, Spotify pulled the price up
               | from there, but there is literally nothing stopping
               | consumers today from paying more for music except that
               | they don't want to.
        
               | ProofByAccident wrote:
               | >Price fixing? You can buy music directly from artists
               | for any price you want.
               | 
               | I think you're missing my point. The opportunity to
               | market direct to consumer does not negate the massive
               | wage-setting power of a cartel which can buy up rivals,
               | production talent, leverage radio, venue, and streaming
               | contracts, etc.
               | 
               | Ex: wired.com/story/opinion-big-music-needs-to-be-broken-
               | up-to-save-the-industry/
        
               | ProofByAccident wrote:
               | Like I don't know how you can read something like this
               | and just say "well have you tried selling on Bandcamp?"
               | 
               | '''
               | 
               | Live Nation's consolidation of the industry was rapid and
               | aggressive, spending around $1 billion in just 18 months
               | in the late 1990s buying independent concert promoters
               | and venue owners. By 1999, when radio titan Clear Channel
               | paid $4.4 billion for the company (then called SFX), it
               | was the largest music venue owner and concert promoter.
               | Antitrust enforcers took no action to stop the deal.
               | 
               | By 2005, Clear Channel had spun off its live music
               | division into a new, standalone company: Live Nation, the
               | country's largest artists manager and concert promoter
               | and second-largest venue owner. Today, Live Nation is
               | once again part of a massive broadcasting and live music
               | conglomerate that wields immense power.
               | 
               | Live Nation has since combined with the ticketing
               | monopoly Ticketmaster, satellite radio monopolist
               | SiriusXM, and online radio leader Pandora as part of
               | media mega-conglomerate Liberty Media. Last year, Liberty
               | Media was approved to take control of iHeartMedia, the
               | largest radio station owner in the country; prior to 2014
               | iHeart was known as Clear Channel. The proverbial band
               | was back together, antitrust concerns and all.
               | Competition and consumer advocates stridently opposed
               | every corporate tie-up along the way; my organization was
               | part of a coalition that argued against the
               | Liberty/iHeart deal last year. Antitrust enforcers
               | permitted every one.
               | 
               | '''
               | 
               | Further down:
               | 
               | '''
               | 
               | The company's power to steer business away from rivals is
               | not theoretical. In late 2019 the Justice Department
               | found that, for years, Live Nation had abused its
               | monopoly by steering its artists and tours away from
               | venues that refused to use Ticketmaster. The government
               | could have sued for monopoly violations but instead
               | simply amended the agreement it struck with the companies
               | when they merged a decade ago.
               | 
               | '''
        
               | ProofByAccident wrote:
               | > Only for those who sign with them.
               | 
               | I think generally the point of cartelization is to make
               | it very challenging NOT to sign with them. Clearly many
               | independent labels can thrive, and I can't imagine that
               | it's impossible for an artist to start their own label.
               | Nevertheless, when eg. sound and recording engineers can
               | be aggressively poached by a major studio it's got to be
               | challenging to go it alone.
        
               | efsavage wrote:
               | > The production of one has huge economies of scale,
               | whereas a song doesn't.
               | 
               | Actually, now that we're digital, the economies of scale
               | of music are similar to software, in that they are
               | massive (and Spotify is a key enabler of that).
               | 
               | > It seems weird to me that your pro-market ideology
               | leads you to support what (to me) seems to be more or
               | less wage-fixing for a labor supplier (musicians)
               | 
               | Musicians have been largely entrepreneurial for
               | centuries. The advent of physical media and distribution
               | control enabled them to form these cartels, and extract
               | rents to enable luxurious "rockstar" lifestyles for a
               | select few. There is now far more opportunity for success
               | and distribution without labels than there has been since
               | they started.
        
               | [deleted]
        
               | ProofByAccident wrote:
               | >Actually, now that we're digital, the economies of scale
               | of music are similar to software, in that they are
               | massive
               | 
               | Is this the case? It seems that there's the fundamental
               | limitation of 10 musicians not being able to record a
               | song in 1/10th of the time. Certainly there are SOME
               | economies of scale, but it seems a little incredible that
               | music would be as "factory producible" as something like
               | a bookshelf or a car.
               | 
               | > The advent of physical media and distribution control
               | enabled them to form these cartels, and extract rents to
               | enable luxurious "rockstar" lifestyles for a select few.
               | 
               | This seems incongruous with the rest of what you are
               | saying. Yes clearly there is an entrepreneurial component
               | of music, and absolutely eg. SoundCloud and BandCamp is
               | enabling independent artists in new and important ways.
               | That doesn't change the fact that massive financial
               | institutions are rent-seeking the bejeezus out of the
               | bulk of the industry in a way that (to me) would appear
               | to hurt competition.
        
           | Milner08 wrote:
           | Right, but the money has always gone to a middleman, be it
           | record companies or Spotify. If Spotify gets any more
           | expensive I can guarantee people will go back to privacy,
           | music will become less accessible and those niche bands that
           | Spotify knows I may like will never get found.
           | 
           | I understand the need to get paid more, but I am not sure
           | killing Spotify is the solution.
        
             | moistbar wrote:
             | And what do you expect to happen to Spotify when the
             | musicians leave for someplace that pays them appropriately?
        
               | SCHiM wrote:
               | The answer is piracy again.
               | 
               | For a moment in time, piracy of movies and series was at
               | a low point. Recently, with the fragmentation of all the
               | different streaming services it's rising again.
        
               | moistbar wrote:
               | The real answer is that Spotify will melt under its own
               | inadequacy and the new platform will thrive. You adapt or
               | you die, and I would have no sympathy for Spotify if they
               | couldn't adapt.
        
               | Milner08 wrote:
               | I don't care if its Spotify, Tidal, Apple Music or some
               | new competitor. But if they get more expensive they will
               | not win people over.
        
               | leesalminen wrote:
               | Presumably these new brands have to charge their
               | customers more in order to pay the artists more, right?
               | I'm about at the max of what I'm willing to pay for music
               | per month...
        
               | cdepatie wrote:
               | Aren't Spotify deals typically coming from the record
               | companies themselves, not the musicians? Unless artists
               | reject the current record company model, Spotify isn't
               | going to be able to fix this problem for them.
        
               | disgu wrote:
               | Musicians have complained in the past and threatened to
               | leave and some have left... just to then come back.
        
               | kgog wrote:
               | I'm trying to come up with a word for that.. I think it
               | starts with a M and ends with a Y and has a onopol in the
               | middle somewhere.
        
               | Macha wrote:
               | It's hard to argue that Spotify is a monopoly when Apple
               | Music, whatever Google's service is called now and Tidal
               | have pretty much the same selection. And you can buy DRM
               | free music still on iTunes and Qobuz. And even physical
               | media. Oligopoly at worst.
        
             | meiraleal wrote:
             | > I understand the need to get paid more, but I am not sure
             | killing Spotify is the solution.
             | 
             | If Spotify doesn't compromise, killing it would be the only
             | solution, but this union doesn't have the power to do that
             | initially. But this will never work because you have a
             | infinite stream of new musicians wanting to be listen
             | without receiving money for that.
        
               | s0xTester wrote:
               | Killing Spotify would be terrible.
               | 
               | New musicians want their work out there....without
               | Spotify(or similar) it will be back to just blasting out
               | your music for free online everywhere so you can get bug.
               | 
               | Spotify at least gives them some revenue while they
               | increase their fandom.
        
             | 101008 wrote:
             | Those niche bands will put their music for free online
             | until they are well known to get their fans pay for the
             | music, as they did in the 90s and 00s.
        
               | Milner08 wrote:
               | Its not about it being free online, its about discovery.
               | Spotify is currently excellent for discovering new bands.
               | TPB? Not so much.
        
           | FireBeyond wrote:
           | > I'd say it is even worse, because people is paying but the
           | money goes to a middleware company that is not paying the
           | right price
           | 
           | Because of contracts the _artists_ signed, not the consumer.
        
           | illuminati1911 wrote:
           | Clearly it is as artists are not starving and can pay for
           | their rent, lifestyle etc.
           | 
           | They just simply "want more", and who wouldn't, but free
           | market and supply/demand disagrees with them. If artists
           | don't like Spotify's offering they can pull their music out
           | of the service.
        
         | 3saryHg6LP2e wrote:
         | Let's do some back-of-the-envelop calculations:
         | 
         | Let's say people stream for 4 hours a day on average.
         | 
         | 4 * 60 = 240 minutes
         | 
         | Let's say a song is 3 minutes.
         | 
         | 240 / 3 = 80 streams == 80p/day
         | 
         | 80p * 30 days per month = 2400p
         | 
         | 2400p == PS24
         | 
         | So that would be ~2.4x increase in price for end users without
         | including Spotify cut or taxes.
         | 
         | Doesn't seem possible to me.
        
           | nso wrote:
           | Also, consider the free account. Presumably, the artist still
           | wants to get paid. So now Spotify somehow needs to be able to
           | make back those 2,400 pennies per user from advertisement.
        
           | Firadeoclus wrote:
           | It seems extremely unlikely to me that Spotify users stream 4
           | hours per day on average. I suspect it's less than one hour.
        
             | 3saryHg6LP2e wrote:
             | It's a fairly arbitrarily number sure, but I think it could
             | be representative. During the working week I listen to
             | music almost all the working day, when I as commuting that
             | adds on another couple of hours.
             | 
             | Even if it's 2 hours a day it would still represent an
             | increase in costs.
             | 
             | Another poster put it better: for $9.99 per month you would
             | be able to pay for 999 streams, I am sure a typical user
             | can easily exceed 999 streams in a month.
        
             | haneefmubarak wrote:
             | Well for instance, I'm on a family plan (6 people total for
             | $15) and I stream a full workday+ daily. I know lots of
             | people who do the same, where they have a lot of
             | "background music" time and then a little active listening.
        
           | kjakm wrote:
           | It's also still remarkably cheap for unlimited access to all
           | the music ever recorded.
        
             | iterati wrote:
             | I'd just go back to torrenting at that price.
        
             | Hamuko wrote:
             | The problem is that people don't care about "all the music
             | ever recorded". They mostly care about a very limited
             | selection of music. And if Spotify starts costing like $45
             | a month, how many people still think it's worth it? You can
             | buy like four albums off of iTunes for that and then listen
             | to them as much as you want.
        
             | falcolas wrote:
             | Nit: It's nowhere close to all the music ever recorded.
             | It's barely most of the mainstream artists.
        
             | mschuetz wrote:
             | For all music ever recorded, maybe. But Spotify doesn't
             | even have half of what I'm regularly listening to - a
             | regular annoyance - let alone half of all music ever
             | recorded.
        
             | 3saryHg6LP2e wrote:
             | Will consumers pay that price is the question?
        
             | Macha wrote:
             | That ship sailed in the 90s with widespread music piracy.
             | The market simply doesn't value digital copies of recorded
             | music that much anymore.
             | 
             | Spotify was an increase in artist revenues as prior to that
             | most people were paying nothing for their music, be it
             | bittorrent in the 00s, cd copying in the 90s, or recording
             | radio to tape in the 80s.
        
         | path411 wrote:
         | Imagine if Youtube creators started trying to get $0.01 per
         | play. This is just a little crazy. Spotify and competitors
         | successfully captured a LARGE number of people who were not
         | paying anyone at all. There has already been a large increase
         | in friction on streaming music the past few years, this will
         | just be a nail in the coffin pushing everyone to go back to
         | pirating.
        
         | robkop wrote:
         | Taking a look at their most recent financial statement we can
         | do some quick calculations.                 (All figures in
         | million euros)                    Revenue        Cost of
         | Revenue     Profit       Premium   :  7135           5126
         | 2009       Free (ads):  745            739                 6
         | Overall   :  7880           5865                2015
         | 
         | Now currently the claim is that they are paying out $0.0038 per
         | stream and we want to raise that to $0.01 which would be a 2.63
         | multiple.
         | 
         | For spotify free that would mean that they just have to include
         | 2.63x more ads, this is doable but I'm sure it would hurt
         | adoption and maybe people would move from the platform.
         | 
         | For spotify paid they could cut down their profit margin and
         | pay 39% more per stream than they currently do (ignoring that
         | they have more than 2B eur in other business expenses
         | currently). But even after that they would still have to raise
         | their prices by a multiple of 1.91.
         | 
         | This would mean they would have to charge about $19.10 a month
         | to not loose money on licencing in the US market.
        
           | nindalf wrote:
           | This is good analysis. Small quibble with the last part - we
           | don't know how much the price charged to consumers needs to
           | increase to be able to afford $0.01 a stream. Any increase in
           | price will see a drop in subscribers, dropping revenue. An
           | increase in price could reduce revenue, making it harder to
           | afford the increased payout.
        
             | rsstack wrote:
             | Since the cost is linear to number of streams, it only
             | matters if the premium subscribers that drop have a lower
             | average streams/month rate than the average premium
             | subscribers.
             | 
             | This assumes, like the post two levels above me, that
             | Spotify don't need the profits for anything and just need
             | to break even.
        
       | cashewchoo wrote:
       | A penny a stream is honestly way more than "a play" of music has
       | cost. I'll admit I'm off the beaten path with how I do music but
       | this is my setup:
       | 
       | 1. I buy the CD release of music because I like to collect them,
       | and the art is cool (I listen to folk metal and they usually do
       | some cool stuff with album art and the front of the CD).
       | 
       | 2. I rip them to FLACs and store them on my plex server
       | 
       | 3. I stream them to my phone/etc.
       | 
       | So I'm really used to paying something like... {cost of cd} /
       | {lifetime play count}. Which honestly is probably a lot higher
       | than what a single stream of music earns the artists but a lot
       | lower than 1c per play.
       | 
       | Just as an example, let's take Sonic Firestorm by Dragonforce. I
       | probably started listening in 2007 or so. 14 years. I listened to
       | the entire CD probably at least 3 times a week for the entirety
       | of high school. So 4 years of high school times 52 weeks a year
       | times 3 plays a week times 9 tracks per play is 5616. I'd guess I
       | paid 12 bucks for the CD (it's 10 on amazon right now). So that's
       | 0.00214 dollars per play. And that's just high school. Though
       | admittedly that's one of my favorite albums, but I do think
       | Alestorm and Ensiferum and several other bands are up in that
       | play count too for my 4 years of college.
       | 
       | And I don't think many bands want to make the argument of "yeah
       | but we're one of those bands you're gonna buy our CD for 12 bucks
       | and listen to 3 times and then we end up in the back of your CD
       | holder because every time you flip through you're like 'nah not
       | really feeling them right now' for weeks on end".
       | 
       | So... I dunno. I'm all for paying artists more. But I would
       | really prefer the way we do that is decrease the (massive) cut
       | that goes to the labels and send more to the artists.
       | 
       | I've been buying my CDs on bandcamp as much as I can recently
       | because as I understand it, bands capture a lot more of that
       | sticker price that way. At least it seems like they do. I get CDs
       | from residential addresses in Norway, anyway.
        
       | macspoofing wrote:
       | >Pay us at least one cent per stream
       | 
       | I bet if Spotify adopted it, the publishers would still want a
       | cut of that.
        
         | bogomipz wrote:
         | Music publishers work for the songwriter. Songwriters hold the
         | publishing. Record labels are the copyright holders. Streaming
         | companies license from the latter.
        
       | kjakm wrote:
       | I would be interested to see what would happen if Spotify changed
       | the free account to something really small (and maybe annual).
       | For example $10 a year. I'd guess that's still small enough that
       | most people will pay it.
       | 
       | There are a lot of comments saying Spotify can't raise prices -
       | but Netflix has repeatedly raised prices successfully. I'm now
       | paying them double what I originally did when I signed up.
        
         | Macha wrote:
         | And when you signed up, people likely just signed up to netflix
         | and left it at that.
         | 
         | Looking at my local pricing, the lowest plan (EUR7.99) is $2
         | cheaper than the single plan that was available when I signed
         | up (EUR9.99), and the equivalent plan to what was available
         | then is (EUR12.99). So that's a 33% increase in 5 years, which
         | is much less dramatic than the 100%-200% increase spotify would
         | need for the suggested payouts.
         | 
         | There's a lot of account sharing or rotating streaming service
         | or plain old fashioned piracy (the "dodgy box", formerly a
         | pirate satellite receiver and now usually a kodi box with a
         | frontend to some pirate stream provider, has been more common
         | in Ireland the last few years than since digital TV was just
         | coming in and competing with free to air broadcast TV).
        
       | m000 wrote:
       | This case reminds me the French Press Association vs. Google News
       | case [1]. The details differ, but the outcome is the same: It's
       | not in your interest as content producer to be excluded. If it
       | wasn't already free for you, you would probably be enticed to pay
       | in order to gain visibility by your customer base.
       | 
       | And frankly, I don't know what UMAW expects to get. Can really
       | Spotify support the $0.01/stream without going out of business?
       | Why are they making non-bilateral demands to Spotify (e.g. reveal
       | business contracts)?
       | 
       | And who are UMAW anyway? From a quick check of their page, the
       | only names I could find were the steering committee, and it took
       | several tries to find members with >1 albums on Spotify. With
       | that level of opaqueness, it's hard to see them convince the
       | public to throw their support behind them. And what's with the
       | sub-committee mania?
       | 
       | [1]
       | https://en.wikipedia.org/wiki/Google_News#EU_copyright_and_d...
        
       | nindalf wrote:
       | What was it like being a median artist in the 90s, before and
       | after Napster? The music industry has always been top heavy, then
       | and now. But does anyone have data on artist earnings? It'd be
       | interesting to know if the earnings of the median artist have
       | increased or decreased in the last couple of decades.
       | 
       | I totally empathise with their demand for a cent per stream, but
       | they could be asking for a share of revenue that doesn't exist.
       | And if the median artist is making more now than they did before
       | Napster, they could be asking for a cut of revenue that has never
       | existed.
        
       | mensetmanusman wrote:
       | Digital data has created a fascinating situation for artists
       | because every new piece of art/music/video/etc. will henceforth
       | always be competing with perfect replicas from the corpus of all
       | human creation.
       | 
       | That means the added incremental value of a new unit of art/etc.
       | will asymptote to zero.
       | 
       | This is one negative downside to the many upsides of digital
       | technology.
        
       | diegoholiveira wrote:
       | A genuine question: how much of Spotify royalty payments goes to
       | the artist? I mean, many of them have agencies that get a cut of
       | this money, or I'm wrong?
       | 
       | I'm asking this because it could improve the artists situations
       | if they could get the royalty directly without a middleman?
       | Probably someone already did a research in this direction.
        
       | CivBase wrote:
       | As I understand, artists haven't made much from record sales or
       | radio deals historically. Most of that money goes to publishers.
       | Instead, artists used those mediums to boost their popularity and
       | made most of their income from merchandise and live performances.
       | 
       | If I had to guess at what's going on here, I'd bet this is driven
       | more by publishers than artists. Music publishers are becoming
       | increasingly irrelevant as platforms like Spotify enable artists
       | to distribute their work more directly at similar margins.
       | Artists are probably just the poster child used to garner
       | sympathy for the cause from the public.
        
       | mdoms wrote:
       | If it's a worldwide event maybe they should define what a "penny"
       | is. I think it's USD$0.01 but honestly I could be off by an order
       | of magnitude, I really don't know.
        
       | bmmayer1 wrote:
       | Does anyone know if this so-called union is an _actual_ union? As
       | in, do they collect dues, do they represent a substantial % of
       | artists, and do its members already collectively bargain with
       | Spotify and similar publishers? If Spotify says no, do these
       | demands have any teeth?
        
         | rmrfrmrf wrote:
         | It looks like yet another cosplay of 20th century labor
         | politics, but with the typical 21st century twist of diverting
         | the fight from those who wield power to... the paying
         | customers, for whatever reason.
        
         | jedimastert wrote:
         | Actually, I believe it would be a _guild_ , as artists are not
         | actually _employees_ of any particular label or service, but
         | just contractors. I also thing Guild is a far cooler name, but
         | that 's beside the point!
         | 
         | As for your actual question, no I don't think they are. They
         | seem more like an advocacy or lobby group
         | 
         | https://www.unionofmusicians.org/#about
        
       | intellix wrote:
       | Reminder that Spotify have forced paying customers to beta test a
       | new UI with significant features outright removed without the
       | ability to opt out. There's 130 pages (1300 comments) of negative
       | feedback and they don't care. I had been paying monthly for a
       | decade and have since stopped until they revert my client:
       | https://community.spotify.com/t5/Desktop-Windows/New-Desktop...
        
       | dbsmith83 wrote:
       | So, if I listen to music for only ~2 hours (120 min) a day, and
       | the average song is 4 minutes, that would be ~30 songs a day,
       | which would be 30 cents a day. $0.30 * 30 days in a month is
       | about $9/month...which is basically my entire subscription fee--
       | probably more. Also, there's like 4 people per account if I
       | remember correctly.
        
         | aksss wrote:
         | In US, Spotify Duo is two accounts for $13/mo. Family is 6
         | accounts for $15/mo.
        
       | juancn wrote:
       | Penny per stream? That's an awful lot in most countries.
       | 
       | If I stream a record twice I cover my spotify premium fee (US is
       | more expensive than Argentina or India, because people can pay
       | more).
       | 
       | Copyrights create artificial scarcity, if you don't like it, just
       | don't put your music on the platform, you have an effective
       | monopoly.
       | 
       | Most music is not that valuable, prices used to be high due to
       | cartelization of the publishers and because the media was
       | difficult to produce (records, CDs).
       | 
       | Cassettes started changing that, and the internet completely
       | destroyed it. There's no going back. If prices go up, piracy will
       | too, and you'll likely end up making less money.
        
         | petey283 wrote:
         | But isn't this part of the negotiation process? Start with a
         | higher demand and work your way to a more reasonable position.
        
       | [deleted]
        
       | Shadonototro wrote:
       | when it was Apple/Google/Amazon, they all shut their mouth
       | 
       | now a non US company is #1, they start to yell
       | 
       | you should have complained before
        
       | diddid wrote:
       | If artists got a penny per stream, I'd create one song and set it
       | up on repeat 24/7.
       | 
       | 365 days * 24 hours * 60 minutes = 525600 minutes 525600 / 3
       | minute song = 175200 streams 175200 pennies / 100 = $1752
       | 
       | So I could pay 120 bucks a year and make 1752! I like the sound
       | of that! And with the family plan, I could pay 1.5x the cost a
       | month but get 5x the revenue!
        
         | hashingroll wrote:
         | There has to be a catch here...
        
       | Galanwe wrote:
       | The problem here is not the platform itself (Spotify). It'd the
       | overall concept of needing a middle man to distribute your work.
       | 
       | I believe blockchain can be a good remedy for unnecessary
       | middlemen.
       | 
       | Audius [1] is a good example applied to the music industry.
       | 
       | [1] https://audius.co/
        
         | Hamuko wrote:
         | Blockchain is the snake oil of the Internet age. No matter what
         | ails you, blockchain is the cure.
        
           | Galanwe wrote:
           | I get that you seem bored by the hype around blockchain, but
           | that does not make anything blockchain related bad.
           | 
           | In this particular issue, I think blockchain is a great
           | solution, as it allows to publish content, gather fees from
           | listeners to artists, without the need of an intermediary.
        
       | Eridrus wrote:
       | So I wanted to try put this into perspective since "a penny per
       | stream" is intentionally meant to sound insignificant.
       | 
       | This seems like it would roughly double Spotify's costs:
       | https://www.republicworld.com/technology-news/apps/how-much-...
       | 
       | And Spotify is already paying out 75% of it's revenue to royalty
       | holders: https://www.rollingstone.com/music/music-
       | features/spotify-pr...
       | 
       | So unless you believe that Spotify is bad at business and there's
       | an extra ~75% of revenue Spotify could pull out of a hat, this is
       | basically impossible to satisfy without cratering the total
       | revenue by doubling prices, which is probably not in artist's
       | interests.
        
         | cwkoss wrote:
         | The pricing section seems incredibly naive. Why should streams
         | be valued at a penny? Why not a tenth of a penny? I don't care
         | how many streams it takes to buy a cup of coffee. What is the
         | argument that 786 streams per cup of coffee is unfair? (I don't
         | think it is)
         | 
         | Being a full time professional musician has only been a means
         | to wealth for a handful of people through history. Most
         | professional musicians, even successful ones, are unable to
         | earn their lifetime expenses from their profession: they make
         | some good money if they have a hit and then fade away and have
         | to get another job. Or they have capitalize on their brand
         | externally to the music market. Has there been any time period
         | in the past several centuries when the average musician earned
         | a living wage?
         | 
         | The goal of a million full-time professional musicians seems
         | arbitrary and I'm not sure why it is necessarily desirable.
         | 
         | Music is a passion, so people are willing to spend time making
         | music below market labor rates. With modern digital
         | reproduction and ease of recording, demand will never exceed
         | supply. I believe the cost of music can and should
         | asymptotically approach zero over time as an ever-growing
         | public domain becomes good enough for most uses.
        
         | kle wrote:
         | While I agree more money should be sent towards small artists
         | and I really hate to see myself defending a giant tech company,
         | the demands of "x per stream" always makes me a bit confused.
         | 
         | Since spotify already pay out the vast majority of their
         | revenue, there is not really much more room for increase there,
         | at best 5-10% which likely wouldn't settle the case.
         | 
         | Reasonable suggestions would be that either: 1. labels should
         | get less, 2. top artists should get less or 3. consumers should
         | pay more.
         | 
         | Or am I missing something?
        
           | jessriedel wrote:
           | Maybe the artists think consumers should pay more. If Spotify
           | wasn't a quasi-monopoly, it would seem silly for artists to
           | demand consumers pay more only on the Spotify platform, but
           | since Spotify is, the argument is at least prima facie
           | reasonable?
        
             | mattnewton wrote:
             | Spotify doesn't seem like a monopoly that has pricing
             | power; they are in tight competition with multiple
             | streaming services like Apple Music and amazon close behind
             | and catching up. There are some sources that have Apple
             | Music already with more paid subscribers than Spotify, and
             | Spotify definitely can't pay a penny per stream of their
             | free ad users.
             | 
             | https://www.statista.com/statistics/653926/music-
             | streaming-s...
             | 
             | https://www.businessofapps.com/data/spotify-statistics/
        
               | _jstreet wrote:
               | > Spotify doesn't seem like a monopoly that has pricing
               | power
               | 
               | I'd argue that all music-streaming services have very
               | little pricing power!
               | 
               | Streaming services rely on being an easier/friction-free
               | option as opposed to piracy (or alternatively, buying the
               | copies directly from the musicians).
               | 
               | Your point is still valid though, the competition is
               | still fierce; Amazon, Tidal, Apple.. etc.
        
               | notriddle wrote:
               | They're also competing with FM radio.
        
           | chipotle_coyote wrote:
           | No, I don't think you are.
           | 
           | For years there's been a conflict broadly defined as
           | "streaming rates paid to artists are irrationally low" vs.
           | "streaming services aren't making money as it is"; the
           | problem is that those aren't mutually exclusive positions.
           | They can both be true at the same time.
           | 
           | At least to me, this suggests that the real problem is that
           | $8-10 a month for ad-free streams was too low a price point
           | to set. If Spotify's pricing structure had been something
           | more like Hulu's -- no free tier at all, $6/month with ads
           | and $12/month without -- they'd have easily been able to meet
           | that penny-per-stream pay rate. (Tidal beats that pay rate,
           | but I suspect that's by virtue of charging $20/month for "hi-
           | fi" streams.) But, at this point they've set consumer
           | expectations: streaming music services cost $10 per month.
           | Changing that would be pretty difficult.
        
             | xorcist wrote:
             | > the real problem is that $8-10 a month for ad-free
             | streams
             | 
             | Which sounds a bit weird to me. How many people used to
             | spend more than $10 _every_ _month_ on LP or CD records.
             | Probably many enthusiasts, but the _average_ customer? Not
             | a chance.
             | 
             | Yet artists say they get paid a lot less. The money must go
             | somewhere.
        
               | chipotle_coyote wrote:
               | It's an interesting question. The cost structures are
               | obviously very different, and while the assumption is
               | that the internet always makes things cheaper and better,
               | I haven't dug into that to see how it really plays out in
               | this context.
        
               | dwohnitmok wrote:
               | > Yet artists say they get paid a lot less. The money
               | must go somewhere.
               | 
               | I don't have any stats for this, but my first guess would
               | be _way_ more paid artists (before the internet, how many
               | people could even hope to make money off music? Physical
               | distribution vs digital distribution is a huge barrier).
        
               | optimiz3 wrote:
               | IMO spending $10 a month on CDs is a different market,
               | since you own an asset in perpetuity. Spotify would have
               | to guarantee a perpetual license that expands your
               | library access the more you pay in. Instead, Spotify
               | rents access to a single large library (which is good
               | enough for most but very different).
        
               | FalconSensei wrote:
               | Exactly.
               | 
               | When I buy a CD, I have a physical good that is displayed
               | on my shelf and it's going to stay with me for years, and
               | which I can possibly re-sell.
               | 
               | $10 for Spotify gives me a month of listening to music.
               | But after that is over, all I got is another $10 payment
               | for the next month.
        
               | tpmx wrote:
               | Interesting question. The US recorded music market peaked
               | year 2000, at $13.4B. (https://musicbusinessresearch.word
               | press.com/2014/03/21/the-r...)
               | 
               | With 282 million citizens at the time, that means every
               | US citizen spent $3.95/month on CDs. Adjusted for
               | inflation it's $7.56.
        
         | wilde wrote:
         | Spotify doesn't want to take the risk, but there's probably
         | money on the table from all the small gyms, coffee shops, etc
         | that should be paying commercial rates.
        
           | jsiepkes wrote:
           | I don't know about other countries but in the Netherlands
           | companies already pay an additional fee which ends-up with
           | the royalty holders [1]. Meaning you have to pay a special
           | license fee when playing music in venue's such as stores,
           | cafe's and even a common office work space.
           | 
           | [1] https://www.bumastemra.nl/en/everything-for-music-
           | users/type...
        
             | m000 wrote:
             | They're everywhere in Europe I believe.
             | 
             | In Greece there was the notorious AEPI [1] that was
             | collecting fees from both stores, as well as subscriptions
             | from artists so they can "represent" them. They were
             | demanding fees even when a store owner was listening
             | privately in their shop (e.g. they had a radio behind the
             | counter). They were dismantled after a corruption scandal:
             | most of the collected money ended up as exorbitant salaries
             | for the board of directors, with the artists again
             | receiving pennies.
             | 
             | [1] https://web.archive.org/web/20170128110611/http://www.a
             | epi.g...
        
             | aksss wrote:
             | I think that technically one is supposed to do that in
             | commercial spaces in the US as well, but there's an
             | enforcement issue. Small businesses aren't really at the
             | mercy of roaming enforcement agents, but there are services
             | businesses can subscribe to that cover the costs of
             | royalties for playing in commercial spaces.
        
         | capableweb wrote:
         | I seem to understand that they want "a penny per stream" to go
         | to the actual artists, which sometimes are not the royalty
         | holders. So paying out less to the royalty holders and more to
         | the artists sound like it could work.
        
           | nindalf wrote:
           | So the artists have a contract with the record labels to
           | share revenue. How is it possible for Spotify to decide to
           | split that revenue differently? Or is the demand to increase
           | payout to the point that artists make $0.01 per stream?
        
             | capableweb wrote:
             | I assume Spotify has agreements with the record labels
             | about how much the royalty owner gets for each stream.
             | Spotify could argue to change that so it's now 50/50
             | between the royalty holder and the artist.
             | 
             | Depending on how much leverage Spotify actually has here,
             | they can of course try to change the existing agreements
             | they have. Nothing in impossible and harder things have
             | changed before.
        
         | barbazoo wrote:
         | It makes me sad to time and time again learn that the low
         | prices of services I love are unsustainable and instead
         | subsidized by treating someone unfairly downstream.
         | 
         | I wish I could be told what the ethical price for something is
         | and I might actually pay it.
         | 
         | And if that price is too high, then maybe that service
         | shouldn't exist in the first place.
        
           | pietrovismara wrote:
           | > It makes me sad to time and time again learn that the low
           | prices of services I love are unsustainable and instead
           | subsidized by treating someone unfairly downstream.
           | 
           | In general, price competitiveness on the market is based on
           | some form of workforce exploitation.
           | 
           | I know it's not a zero sum game and so on, but someone is
           | paying the difference on the discounted price you are
           | offered.
        
             | path411 wrote:
             | There is plenty of money and it is sustainable, it's the
             | curse of the middle man taking all of the money. If an
             | artist uploads their own songs to spotify, there's plenty
             | of money for the artist.
        
           | kfwerf wrote:
           | I think it is sustainable if we can cut out the middle man,
           | the royalties go mainly to labels and less so to artists.
           | E.g. if an artist doesnt use a label on Spotify im sure his
           | revenue will be higher and the current price would be
           | sustainable. I think the royalties that go to labels are
           | unsustainable
        
             | shados wrote:
             | Doesn't services like Spotify make that easier?
             | 
             | AFAIK while you need a distributor and can't just upload
             | your stuff like you can on Youtube, there's a bunch of them
             | that seem to give the artists everything.
             | 
             | If the artist choose to go with a label that takes their
             | royalties, that's on them. If they do it because they want
             | the visibility and services, that has a cost.
             | 
             | Music is a field where a lot of people do it just for fun,
             | and it's quite saturated. Supply (as in diversity of
             | products) way outweigh demand.
        
           | disgu wrote:
           | Wait - how are you responsible for the fact that the artists
           | sign away their rights to shitty big labels that take the
           | majority of the money that work generates? How are you
           | responsible for dumb decisions musicians make?
        
             | chipotle_coyote wrote:
             | Artists have literally shown up in the comments here
             | explaining that it's not that simple, and that these rates
             | are issues for people who sign to small/indie labels and
             | even artists who _own_ their own labels.
             | 
             | Also, "if you're abused it's your own fault for being dumb"
             | is usually a take you want to be pretty careful with.
        
               | cwkoss wrote:
               | Being unable to monetize a hobby is not abuse.
        
               | [deleted]
        
             | bogomipz wrote:
             | There was time before streaming that artists absolutely
             | needed record labels and that was the set of circumstances
             | under which they signed deals with record labels. Before
             | Youtube and streaming services record labels provided
             | distribution of your product to local markets as well as
             | promotion of that product in local markets both in stores
             | and on radio. The overwhelming majority of the big 3
             | records label's catalogs are from that era. How exactly
             | does that constitute "dumb decisions musicians make?" Your
             | logic is absurd and seems to predicated on somehow being
             | able to predict the future.
        
             | kgog wrote:
             | I bet you also think grocery workers are dumb for agreeing
             | to work while demanding better working conditions and fair
             | pay.
             | 
             | They are not dumb decisions. An indie artist HAS to sign
             | with labels if they want to make it in the industry. That's
             | the way it's been and we've accepted for decades that
             | that's the way it will be.
             | 
             | Mistreating workers is not okay. Workers joining the status
             | quo to make a living is not dumb. Calling them "dumb"
             | online is deplorable, however.
        
               | path411 wrote:
               | It's something that's changing drastically every day. An
               | indie artist is more and more able to record and upload
               | their own song to spotify today than any time before.
        
               | picardythird wrote:
               | Just being able to upload to Spotify does not make a
               | sustainable career. You need marketing, and you need to
               | build up a wide and loyal following of people who will
               | buy your stuff.
        
               | [deleted]
        
             | frabjoused wrote:
             | Why don't you become a musician and try to make it before
             | laying it out like this? They hardly have another choice.
             | Do you immediately assume 95% of artists are
             | entrepreneurial fools?
        
               | cwkoss wrote:
               | There are lots of musicians who aren't producing a
               | living-wage's worth of value to listeners.
               | 
               | They do have a choice: they can get a better paying job
               | if they don't like the amount they can earn from music.
               | Society should not be responsible for funding someone's
               | passion when there isn't demand.
               | 
               | And yes, the expectation that you can earn a good living
               | just by being a recording artist is foolish. The vast
               | majority of musicians throughout history have been unable
               | to do so.
        
             | picardythird wrote:
             | I'm not sure you get how the music industry works. Getting
             | a record contract isn't quite like getting a CS degree,
             | passing a coding interview, and being handed 125k and
             | benefits by HR. But sure, all these musicians are just dumb
             | idiots. Have some respect for artists (unless you hate
             | music, I guess).
        
           | jsiepkes wrote:
           | I think the 90's (Napster, Kazaa, etc.) has proven people are
           | simply not going to pay that kind of money for the product
           | (music).
           | 
           | The music industry also seems a bit like a "winner takes all"
           | market where there are a bunch of top grossing artists which
           | make an insane amount of money and a much, much larger part
           | which can't make a decent living out of it.
        
             | ampdepolymerase wrote:
             | Almost every major internet content industry is winner
             | takes all. That is just the nature of power law
             | distributions. Ask your average social media influencer how
             | much they make. Also your average YouTuber/Twitch streamer.
             | It is not unique to the music industry, just that the music
             | industry is older and has more inefficiencies in the form
             | of middle man that don't contribute much in value
             | production but still takes a large cut.
        
               | ProofByAccident wrote:
               | > has more inefficiencies in the form of middle man that
               | don't contribute much in value production but still takes
               | a large cut.
               | 
               | Not to go laser-eyes Marx, but this is definitely not
               | unique to the music industry either
        
           | dublinben wrote:
           | The ethical way to pay for music is to actually buy it from a
           | site like Bandcamp, instead of perpetually renting it from
           | Spotify.[0] Expect to pay about $10 for an album.
           | 
           | Bandcamp usually takes a ~20% cut, but now has regular events
           | where they waive their cut.[1]
           | 
           | It should be clear that $10/mo is not a sustainable price to
           | pay to listen to any and all music ever recorded.
           | 
           | [0]https://pitchfork.com/thepitch/how-much-more-money-
           | artists-e...
           | 
           | [1]https://isitbandcampfriday.com/
        
             | theragra wrote:
             | I don't think this will work. I can spend 8 euro for
             | spotify subscription, but if i had to pay for albums, I'll
             | buy maybe two a month, then resort to piracy. I don't think
             | this is very unethical, bc even if there is no piracy, I
             | still won't buy more than two albums. I'll listen to free
             | music on soundcloud and YouTube, fm radio, whatever, but I
             | won't pay more.
        
         | bogomipz wrote:
         | >"And Spotify is already paying out 75% of it's revenue to
         | royalty holders'
         | 
         | "Royalty holders" is not even an actual term. Copyright holders
         | are the owners of master recording - often a record company.
         | Streaming services license entire catalogs for a fixed price
         | for a fixed period of time. Streaming service don't pay record
         | labels royalties. Royalties of which there are two in the
         | context of streaming are a) performance royalty and b) a
         | mechanical royalty both of which are paid out to the publisher
         | and songwriter.
         | 
         | >"So unless you believe that Spotify is bad at business and
         | there's an extra ~75% of revenue Spotify could pull out of a
         | hat, this is basically impossible to satisfy without cratering
         | the total revenue by doubling prices, which is probably not in
         | artist's interests."
         | 
         | The whole argument that the current predominant streaming model
         | is the only viable business model is flawed. This seems to
         | presume that the "pro-rata" distribution model that Spotify
         | uses is the only distribution model. There is an alternative
         | model that many artists are pushing for which is a the "user
         | centric' distribution model. In that model the calculation of
         | payments is based on the listening habits of each individual
         | user. A simplified examples is that I only listen to one artist
         | in a given month. In the user centric model the entire 10% of
         | record labels 70% usually allocated to the artist cut is paid
         | to that artist rather than those streams being calculated as
         | percentage of all songs streamed from that one of the big 3's
         | record label's massive catalogs.
        
           | Eridrus wrote:
           | > There is an alternative model that many artists are pushing
           | for which is a the "user centric' distribution model. In that
           | model the calculation of payments is based on the listening
           | habits of each individual user. A simplified examples is that
           | I only listen to one artist in a given month. In the user
           | centric model the entire 10% of record labels 70% usually
           | allocated to the artist cut is paid to that artist rather
           | than those streams being calculated as percentage of all
           | songs streamed from that one of the big 3's record label's
           | massive catalogs.
           | 
           | Then they should push for that specifically, but it would not
           | change the average rate paid per stream, but rebalance
           | payments away from artists which are listened to by heavy
           | music users towards artists which are listened to light music
           | users.
        
             | bogomipz wrote:
             | They push for whatever they feel is right. I was simply
             | pointing out that Spotify's distribution model is not the
             | only one. It also has nothing to do with "heavy users" vs
             | "light users." A heavy user can listen to the same artist
             | or same small handful of albums.
        
         | soperj wrote:
         | Their business isn't to support Spotify, their business is to
         | make money making music. If they can't do that with Spotify,
         | then it would be better for them for Spotify to not exist.
        
         | cratermoon wrote:
         | > And Spotify is already paying out 75% of it's revenue to
         | royalty holders
         | 
         | Realize that the royalty holders are not the musicians, but
         | typically the major labels. The musicians get virtually
         | nothing.
        
           | johbjo wrote:
           | The three or four major media companies/rights holders
           | correspond to roughly 75% of streams on Spotify, and probably
           | the entire catalogue of music pre 2010. This gives them the
           | bargaining power to influence playlists, recommendations, and
           | so on. This is what they mean by payola. They can use this to
           | launch new artists.
           | 
           | Independent artists don't like this.
        
           | disgu wrote:
           | The fact that they're showing up at Spotify's offices then
           | shows even more why they're not making money. They seemingly
           | don't understand the business they're in... at all.
           | 
           | They sign shitty contracts that leave them with "virtually
           | nothing" and then complain to someone who is not responsible
           | for them having "virtually nothing".
        
             | lux wrote:
             | Unsigned artists don't sign anything with labels but we do
             | agree to Spotify's terms, and those terms take from us and
             | hand it over to major labels.
             | 
             | If a user pays $10/mo and listens to nothing but indie
             | streams, those indies are getting far less than $7.50 (more
             | like pennies) due to the way they calculate their payouts.
             | The major labels pocket the majority of that money.
             | 
             | Spotify have the ability to change this, but not the will
             | to do so, because the major labels own a stake in them.
             | Soundcloud recently launched a payment model that matches
             | pretty much exactly what indies are asking Spotify to do,
             | so we know it's possible but Spotify have been stonewalling
             | indies about how it's too complicated for years.
        
               | weddpros wrote:
               | "due to the way they calculate their payouts": yes, I'm
               | sure that's the real issue, but the solution isn't a
               | penny per stream. The solution is definitely to
               | redistribute money according to what people listen to,
               | but I doubt the big labels will accept these terms: they
               | are the ones who negotiated, they are the ones stealing
               | from indies.
               | 
               | Best case scenario: indies will get enough pennies so
               | they stop complaining, big labels will continue as today,
               | Spotify will allocate some of its own money to music
               | creation...
               | 
               | and the problem will remain unfixed at the roots.
               | 
               | remember who forced Spotify and others before it, to
               | negotiate a deal at all cost with the Majors or be
               | declared illegal?
        
               | lux wrote:
               | I totally agree, the penny per stream focuses entirely on
               | the wrong thing, further entrenching the real issue by
               | derailing the whole discussion. It also makes it less
               | likely the real issue will be taken as seriously later on
               | after we've just "cried wolf" over this one.
               | 
               | On the plus side, services like Soundcloud and Deezer are
               | adopting the payment scheme that is the solution to this,
               | which opens a potentially more promising avenue through
               | which to pursue the issue ("if they can do it, why can't
               | you?").
        
               | paxys wrote:
               | If you are an indie artist (no record label deals) and
               | agree to Spotify's terms, how are major labels involved
               | at all? How are they getting the payouts meant for you?
        
               | lux wrote:
               | Deezer explains it well here:
               | 
               | https://www.deezer.com/ucps
        
               | paxys wrote:
               | Well the size of the pie is still the same in this plan.
               | All it would do is shuffle the money around a little bit,
               | so some artists earn less and others more. The top demand
               | from the linked campaign is for Spotify to pay out >3x
               | what they currently do to artists, which is a completely
               | different (and much more significant) ask.
        
               | lux wrote:
               | That's exactly my point. I'm not arguing for the
               | 1c/stream the OP is, rather to follow Deezer's model.
               | Major labels are pocketing money that indies earned (and
               | if you look into it they're not actually paying all of it
               | out to their artists either). With this change indies
               | won't be well paid, but they'll be paid fairly.
        
               | number6 wrote:
               | and why sign a deal or agree to terms that you don't
               | agree to? Just don't go to Spotify?
        
               | lux wrote:
               | Tell that to listeners. Many artists don't list
               | themselves there for that reason, but you're penalized
               | for it because Spotify playlists are increasingly the
               | only way many people access music at all. The do or don't
               | isn't always so black and white.
        
               | number6 wrote:
               | It's the same problem with the use of WhatsApp. If people
               | want to talk to me there are other means to contact me.
               | It's just that everyone is on WhatsApp. So what choice do
               | I have? Be part of the problem or be excluded from social
               | life.
        
             | core-questions wrote:
             | > They seemingly don't understand the business they're
             | in... at all.
             | 
             | Do you know any musicians? Like, real musicians, for whom
             | music is their life and their life's work, not dabblers?
             | 
             | Typically these are not shrewd business types. They don't
             | hold a lot of negotiating power; if they're lucky enough to
             | get a chance with a label deal they often don't push back
             | on the terms very much at all. Labels are notoriously
             | predatory in this regard, particularly mainstream large
             | companies.
             | 
             | All they want is a fair shake. They see themselves and
             | their fellow artists being screwed continually, while
             | people that have nothing to do with their hard work, long
             | nights, and passionate effort make money off their backs.
             | For every artist that learns, there are ten more willing to
             | take their place just for a tiny sliver of a chance at
             | popularity.
             | 
             | The solution here is to do whatever we want to continue the
             | slow work towards destroying mainstream labels. Indie
             | labels still offer a reasonable value proposition in terms
             | of the promotion and recording work they do in exchange for
             | a share of the proceeds; mainstream labels don't. Like most
             | media industries, they're headed by parenthetical elites,
             | cosmopolitan types who have no loyalty to anything but
             | profit, and will squeeze out every drop no matter the
             | impact to the actual working artists.
             | 
             | Fuck 'em. Don't listen to mainstream music. Support indie
             | artists and labels; buy direct wherever possible. If
             | anything, the protest should be to make it trivial to
             | directly host your music with Spotify for a nominal hosting
             | fee, so that all revenue can go direct to the artist,
             | rather than having to go through a 3rd party service.
        
             | afavour wrote:
             | > They sign shitty contracts that leave them with
             | "virtually nothing" and then complain to someone who is not
             | responsible for them having "virtually nothing".
             | 
             | I guess that's what you have to do when you're powerless.
             | Record labels force you into shitty contracts. They have
             | the power. Who has power over the record labels? Spotify.
        
               | Hamuko wrote:
               | > _Who has power over the record labels? Spotify._
               | 
               | What power does Spotify have over record labels?
        
               | tschwimmer wrote:
               | Distribution tends to be the hardest part of any supply
               | chain and it doesn't seem like music is any different.
               | Spotify owns distribution and has almost no competitors
               | anymore (either online or offline) and the future is very
               | clearly streaming. So the labels will end up depending on
               | Spotify for revenue. In 2018, streaming revenue accounted
               | for half of all label revenue[0], and that will only
               | increase.
               | 
               | [0] https://mashable.com/article/major-music-
               | labels-19-million-p...
        
               | Orphis wrote:
               | Spotify doesn't own any distribution. The labels do, and
               | they could just not renew their contract and move to a
               | competitor's service at a whim, destroying the company
               | (who wants a service where 1/3 of the artists are not
               | available?).
               | 
               | They have the biggest share currently, but they're never
               | safe.
        
               | Hamuko wrote:
               | > _Spotify owns distribution and has almost no
               | competitors anymore_
               | 
               | According to the statistics I have, Spotify has 34%
               | market share while Apple Music has 21%, Amazon Music has
               | 15% and others have 30%. That's hardly "no competitors".
        
           | antihero wrote:
           | Isn't that a problem generally in the music industry?
        
             | metajack wrote:
             | Music rights are split into two traditionally, the
             | songwriting copyright and the mechanical reproduction
             | right. Previous to the internet, media sales mostly went to
             | the labels who held hte mechanical rights and songwriting
             | copyright was earned directly to the artist. So if you
             | bought a CD the label gets paid, if you play a song on the
             | radio an artist gets paid.
             | 
             | The music industry lawyers were incredibly smart when they
             | passed the DMCA back before online music was much at all,
             | and got internet streaming defined as mechanical
             | reproduction so they got dealt in on streaming.
             | 
             | ASCAP, BMI, and SESAC, et al, which give large blanket
             | licenses to cover most copyrights for songs charged well
             | known quantity for licenses, and early music streaming
             | services paid those. Harry Fox (at least at the time) was
             | the clearing house for mechanical rights and there was
             | actually no set rate or anything. DMCA created a compulsory
             | license that Harry FOx would have to give, but the rates
             | were not known at the time, so everyone was getting VC
             | funding without knowing what anything would cost.
             | 
             | That rate is probably much higher than the songwriting
             | royalties, so the music industry has succeeding in getting
             | ahold of most of the money in a new format that was poised
             | to benefit the artists directly.
             | 
             | I guess we should just be glad it didn't happen like video
             | streaming and there are actually rights clearing houses so
             | companies like Spotify and others can make compelling
             | streaming services with very large catalogs, unlike the
             | city-state video steaming where you need 3-4 services
             | combined to get access to most of the mainstream stuff.
        
               | rsstack wrote:
               | Can you, or someone, share a source for the first
               | paragraph? It completely changes my perception of music
               | royalties and I'd like to be sure before I repeat it :)
        
               | bzbarsky wrote:
               | https://www.royaltyexchange.com/blog/mechanical-royalties
               | seems like a decent explanation, though I'm not an expert
               | in this area...
        
           | robbyking wrote:
           | I think this is the main thing most music fans (and young
           | musicians) are forgetting: historically, musicians have never
           | made money off of album sales, labels have. Musicians make
           | the bulk of their money from touring and merchandise.
           | 
           | Steve Albini does a good job of breaking it down here:
           | https://thebaffler.com/salvos/the-problem-with-music.
           | 
           | FTFA:
           | 
           | > For the average band, a $250,000 advance (in 1993 dollars)
           | is distributed like this:
           | 
           | > Record company: $710,000
           | 
           | > Producer: $90,000
           | 
           | > Manager: $51,000
           | 
           | > Studio: $52,500
           | 
           | > Previous label: $50,000
           | 
           | > Agent: $7,500
           | 
           | > Lawyer: $12,000
           | 
           | > Band member net income each: $4,031.25
        
             | conradfr wrote:
             | After a pandemic year one might see the problem.
        
             | meddlepal wrote:
             | Historically this model made a lot of business sense... it
             | was hard to distribute before the internet. The record
             | company took the product and marketed and sold it to a
             | broader audience than the artist or band would ever be able
             | to reach on their own. The artist in turn collected the
             | money on the live performances which, if there product was
             | successful, would yield good returns.
             | 
             | I don't know if it makes nearly as much sense in a world
             | where you can just upload your music to YouTube and do
             | direct marketing via Twitter/FB/TikTok.
        
           | Hamuko wrote:
           | Yeah, but that's not Spotify's problem to fix.
        
           | MomoXenosaga wrote:
           | Well musicians do voluntarily sign the contracts with major
           | labels. And they do get payed for it.
           | 
           | https://www.npr.org/2020/12/07/943818966/bob-dylan-sells-
           | son...
        
         | pwinnski wrote:
         | Is "charging so little you can't cover your rightful costs" bad
         | at business? Then yes, I believe that Spotify is bad at
         | business.
         | 
         | Hypothetically, my profit margin making widgets would be better
         | if I could just pay my raw material provider half-price. I
         | could pay them half-price, add, say, another one-third of that
         | to cover other costs and overhead, and probably dominate the
         | market since I could charge less for my widgets than any
         | competitors who have to pay the full raw material costs.
         | 
         | Again, bad at business? Depends on who you're asking.
        
         | Tenal wrote:
         | Do you have any idea how much bloat Spotify has that it can
         | cut? Have you ever seen the NYC office? It's padded with
         | hundreds of overpaid "creatives" poached from every NY agency
         | who do nothing more than create unnecessary traditional
         | marketing campaigns, all of which serve no one, while spending
         | 80% of the day snacking on premium goods and watching insider
         | music acts in their gigantic, swanky, luxury office space.
         | 
         | Source: Been there, seen it, a long time. Spotify needs to be
         | nothing more than a functioning music utility. Instead their US
         | offices are structured like a massive, bloated, 90's style
         | agency party zone.
         | 
         | Trust me.
         | 
         | There is room to cut costs.
        
         | Cthulhu_ wrote:
         | According to one source [1], Spotify users stream on average 25
         | hours a month. Assuming an average song is 3 minutes [2],
         | that's 500 streams per month. Going with the $9.99 per month
         | rate, users pay about $0.02 per stream. Currently, the artists
         | see only $0.0038 per stream, or less than 1/5th of what Spotify
         | makes.
         | 
         | I think that with a 50% profit margin, Spotify should be very
         | happy. Of course, it's not that easy / straightforward, all
         | conditions and caveats apply, etc etc.
         | 
         | [1]: https://www.businessofapps.com/data/spotify-statistics/
         | [2]: https://www.music-jobs.com/uk/article/news/news-pop-songs-
         | ar...
        
           | Eridrus wrote:
           | I feel like you should take Spotify's audited financial
           | statements about how much they make and how much they return
           | to rights holders (~75% of revenue) more seriously than your
           | back of the envelope estimates:
           | https://investors.spotify.com/financials/default.aspx
        
             | smnrchrds wrote:
             | Agreed. The above calculation for example does not account
             | for the fact that Spotify pricing varies significantly
             | between countries and can be as little as 1.60$ per month.
             | 
             | https://edm.com/industry/spotify-premium-prices-by-country
        
               | SpaceCenturion wrote:
               | Indeed! I have a family account for 6 people here in
               | Brazil and I pay around 0.77 USD per person.
        
           | NopeNotToday wrote:
           | How much of Spotify's revenue goes towards songwriters,
           | labels, distributors, publishers, as opposed to the artist?
        
             | Denvercoder9 wrote:
             | The quoted $0.0038 is the total of what Spotify pays out to
             | the distributor, who then distributes it between
             | themselves, the artist, songwriters, their labels, etc.
        
               | [deleted]
        
             | UnpossibleJim wrote:
             | I tried to look into what radio paid out to these same
             | people as a comparison, but the information I found seemed
             | to be purposefully obtuse:
             | 
             | https://soundcharts.com/blog/radio-royalties
             | 
             | I couldn't actually find out what was paid, but it did look
             | to be that, artists weren't really paid. It was song
             | writers and publishers who were paid. Performing artists,
             | however, only generated word of mouth which generated
             | ticket sales - so far as I could garner.
        
           | grumple wrote:
           | You think that the developers and every other party involved
           | costs less than 50% here? Devs cost a lot. Bandwidth and
           | servers don't cost that much, but for large scale data
           | transfer like spotify, it does. Running the company costs a
           | lot. Maybe the fair price is double what it currently is. But
           | that might result in the artists making less than they
           | currently do, not more (this is, in fact, my suspicion - if
           | Spotify could increase profits by charging more, they would
           | already be doing so).
        
           | smachiz wrote:
           | Yes, ignoring all other costs isn't great.
           | 
           | Their revenue per subscriber is also substantively lower -
           | including free users, discounted EDU users, and family
           | memberships. Excluding free users, it's probably ~$5 per
           | user.
           | 
           | That being said, Apple Music pays .75p/stream, Tidal is
           | 1.25p/stream. They can probably figure it out.
        
             | vardaro wrote:
             | The nominal figure of what the platform per stream pays
             | artists should not be discussed without taking into
             | consideration the amount of monthly active users using the
             | platform. Tidal and AM have significantly fewer users than
             | Spotify
        
             | Dma54rhs wrote:
             | > Yes, ignoring all other costs isn't great.
             | 
             | > Their revenue per subscriber is also substantively lower
             | - including free users, discounted EDU users, and family
             | memberships. Excluding free users, it's probably ~$5 per
             | user.
             | 
             | > That being said, Apple Music pays .75p/stream, Tidal is
             | 1.25p/stream. They can probably figure it out.
             | 
             | Their rates are per country, they differ. So these
             | calculations gave to it into account, but everyone pays the
             | 5 or whatever it costs now in the west.
        
               | smachiz wrote:
               | The amount they pay per stream differs per country too, I
               | think.
        
             | stephenhuey wrote:
             | If they cannot pay the artists more, a long-term freemium
             | plan might not be a great business model then. If free
             | users are seriously cutting into profits, should they
             | change the free plan to a limited free trial? I was around
             | in the 80s 90s and we didn't really have free cassettes and
             | CDs and radio paid studios & artists with ad revenue.
             | Spotify is well known enough now that it could be argued an
             | unending free tier may no longer be necessary.
        
               | mattnewton wrote:
               | This doesn't make sense to me, it's not that they are
               | eating into profits, it's that they are eating into
               | average margin; they presumably still at least break even
               | on free users. And I would bet dollars to donuts that
               | those free users are not going to convert to paid when
               | piracy, YouTube videos, and free trials of other services
               | exist.
        
               | Rule35 wrote:
               | I think Spotify is the first service to tempt me from
               | piracy. Piracy doesn't handle discovery, or access across
               | multiple devices, is a pain, and is actually (who knew?)
               | illegal. Spotify handles all of those _and_ won 't get
               | you arrested.
               | 
               | Youtube for music is simply worse than pirating and being
               | caught.
        
               | dont__panic wrote:
               | To be fair, back in the day I used last.fm for music
               | discovery, social music stuff, etc. and the more Spotify
               | forces podcasts down my (paying subscription) throat the
               | more I want to go back to piracy + last.fm.
        
               | Rule35 wrote:
               | Perhaps the dynamics have changed since you had to shop
               | for music in physical stores, and purchase it in hour-
               | long increments.
               | 
               | I certainly play more music now than when I had to change
               | the tape, but without the ritual and the intent, I
               | _listen_ a lot less. This changes my value from streaming
               | over simply not having to store my music library locally.
               | 
               | It doesn't cost an artist more to be played more, but it
               | does cost the streaming service. This may bring more
               | casual listening and help some artists, and "underpay"
               | someone who's more famous and would get the bulk of the
               | first-song play that comes from intent. I don't think
               | it's "wrong" but it may be the wrong fit for any given
               | artist.
        
               | mrgreenfur wrote:
               | Totally agree. Maybe spotify should look like an app
               | store with fees in the 30% range at the top end
               | (shopify/apple/steam). Their role is very similar:
               | distribution and discovery. They probably could wi points
               | giving better payouts per stream to smaller artists too,
               | like steam does. Hopefully competition will force it down
               | too (eg epic vs steam vs apple). We might need open
               | access to back catalogues and not exclusive deals, but
               | its a start
        
               | mattnewton wrote:
               | The App Store for music exists many times over and users
               | (including myself) prefer a lower cost streaming model.
               | There is simply too much cheap or free music out there
               | now for me to value it at iTunes singles prices.
        
               | wtetzner wrote:
               | Of course, and users would prefer completely free music
               | over cheap music too. That doesn't mean it's sustainable,
               | though.
        
               | mattnewton wrote:
               | I mean, short of government legislation the market isn't
               | going to stop driving the price of music down. The
               | marginal cost of additional "performances" of the song is
               | almost zero and people are constantly making new
               | recordings for free because they love doing so. I don't
               | see why making a living off digitally recorded music has
               | to be sustainable, and I don't see how it can be when the
               | supply is so endless.
        
           | mortenjorck wrote:
           | The $0.0038 figure is probably due in part to the way Spotify
           | calculates royalties, dividing a pool of all subscriber
           | revenue among all streaming activity, rather than dividing
           | the revenue from each subscriber among each subscriber's
           | streaming activity.
           | 
           | Some have pointed to logistical challenges in the latter
           | model, but it's clearly not impossible, as SoundCloud just
           | announced it will be the first service to adopt it:
           | https://press.soundcloud.com/197001-soundcloud-introduces-
           | fa...
        
           | lumost wrote:
           | The problem is that most artists do not own the distribution
           | rights to their own music, these are owned by various record
           | labels. Many top tier artists create their own record labels
           | and shoulder the cost of advertising/promotion while also
           | dramatically increasing their cuts.
           | 
           | The fact that individuals aren't able to break out via self-
           | publishing music is an oddity in the internet age. Why aren't
           | there more avenues to hear "random new artist that matches my
           | tastes"? or is it self-perpetuating that labels sign all
           | successful artists who can go mainstream?
        
             | indigochill wrote:
             | >Why aren't there more avenues to hear "random new artist
             | that matches my tastes"?
             | 
             | Because Bandcamp is perfect at this and nobody can beat
             | them.
             | 
             | I say that with tongue in cheek, but they have been the
             | platform for average musicians to self-publish on for a
             | while. They've even totally foregone their cut periodically
             | during the pandemic to help artists. And unlike Spotify,
             | artists are able to apply their own branding to their
             | pages. I've never met a musician with a bad thing to say
             | about them or their platform.
        
             | brabel wrote:
             | I like to listen to jango.com which tries to "push" new
             | artists while you listen to some "station"... I've found a
             | few good "completely unknowns" there, but most stuff they
             | push is really low quality. I think that a platform where
             | you could discover new artists easily using a system
             | similar to this (play mainstream artists, mostly, but throw
             | in a few songs from unknown artists that play similar
             | genres), but then had an option to "upgrade" to get stuff
             | like offline access to artists you like, could become very
             | successful.
        
               | tekromancr wrote:
               | > play mainstream artists, mostly, but throw in a few
               | songs from unknown artists that play similar genres
               | 
               | Isn't that just "radio"?
        
               | derivagral wrote:
               | This is Pandora, right?
               | 
               | https://en.wikipedia.org/wiki/Pandora_(streaming_service)
        
           | incrudible wrote:
           | If Spotify is in fact spending 75% of its revenue on
           | royalties, but according to you less than 25% of it arrives
           | at the artist, what does that tell you? Either your
           | calculation is wrong, or somebody who is _not Spotify_ is
           | pocketing the difference.
        
           | 015a wrote:
           | Think about a strategic decision like this: Spotify decides
           | to pay-out a $0.005/stream rate to Taylor Swift. That's more
           | than most artists make, but its what Taylor demands, and
           | Taylor holds some cards here because she's popular.
           | 
           | Let's say that Spotify says No. Spotify's argument is, in
           | effect, all artists are sharing a piece of the same pie; if
           | they give Taylor Swift a higher than average rate, it lowers
           | the average payout for every other artist. By saying No, in
           | this hypothetical universe, Spotify is standing up for indie
           | artists.
           | 
           | Taylor (more accurately, her rights holders) does not put her
           | music on Spotify. Customers who come to Spotify for Taylor
           | Swift's music no longer feel that their subscription is
           | worthwhile; they stop paying.
           | 
           | Now, the pie is smaller. Indie artists receive a bigger chunk
           | of a smaller pie. Customers are left without the music they
           | want. Spotify's revenue is lower. Everyone loses.
           | 
           | Its easy to place the blame at Spotify, and I'm sure they
           | deserve some, but we've known for about half a century that
           | the record industry is a hive of shit, and this is just
           | another symptom of this. The disparity in income between the
           | popular artists and average artists is huge, and its mostly
           | because of gatekeeping that the popular artists actively
           | engage in to protect their nine-figure fortunes. Spotify
           | could have stood up for smaller artists, but I'm not
           | convinced they'd even exist today if they had; it was really
           | their willingness to work with the record industry that
           | turned them into the force they are.
           | 
           | I do have some hope that Square's purchase of Tidal could be
           | a catalyst for change in the industry. In other words, if
           | they maintain Tidal's high(est) revenue share with artists,
           | improve the user experience (a lot), leverage their existing
           | industry relationships to keep enough popular artists on the
           | platform, and work with indie artists... it could be very
           | good. I'm optimistic. I think Tidal's core investors being
           | artists themselves and a traditionally low-margin payment
           | processor is actually very healthy, versus Spotify who
           | effectively is just a middle-man that needs to extract enough
           | to survive.
        
           | zdragnar wrote:
           | Are only paid plans paying out royalties? I used to pay for
           | spotify, but cut it after a budget rebalance since we just
           | didn't use it enough. I still use it about 50% as much as
           | when I paid.
        
           | mikepurvis wrote:
           | The other issue that has been raised a number of times is
           | that I believe the revenue is still divided up based on
           | overall listens across the platform, which means it's
           | dominated by artists who feature heavily in popular playlists
           | and automation-driver radio/recommendations.
           | 
           | These listens are often passive and should not be considered
           | as valuable as those of someone listens only a few hours a
           | month, but spends all of that time listening to specific
           | artists (indie or otherwise).
           | 
           | Basically the argument is that if I spend $9.99 on a Spotify
           | sub, the entirety of that cash (minus Spotify's cut) should
           | be directed to the actual artists I listened to.
           | 
           | Here's an articulation of this perspective from 2014:
           | https://medium.com/cuepoint/how-to-make-streaming-
           | royalties-...
        
             | Rule35 wrote:
             | Should is a big word, but it feels like Spotify could make
             | us indie-lovers happy by rewarding the intentional listens
             | with slightly more money. Perhaps giving them a cut of the
             | next few recommendations. Even though I know that famous
             | artists would get more of this than the indies, taking
             | value from the long mid-catalog.
        
               | mikepurvis wrote:
               | I think that's risky because then there's some process
               | that puts you in one of the two buckets, and there's
               | probably going to be a valley of suck between them, where
               | you're big enough that you don't qualify for the indie
               | special treatment, but not so big that you're raking it
               | in like Taylor Swift.
               | 
               | The nice thing about the proposal from the article is
               | that in theory it should be something where everyone's
               | incentives are aligned, since it rewards artists and
               | genres for having fans who listen to their stuff a lot.
        
               | Rule35 wrote:
               | Yeah, that's what I mean by the mid-catalog. People you
               | didn't quite go intending to play, and not the
               | headliners. To the degree that it's a fairness discussion
               | though it always comes down to sorting into buckets (even
               | if absolutely identical buckets) and arguing for some
               | distribution.
               | 
               | Good point. That's the sort of thing that warms the
               | cockles of my artist-supporting heart.
        
             | [deleted]
        
             | tebbers wrote:
             | I agree with this argument, and this is THE reason why I
             | don't pay for a streaming subscription. I have no desire to
             | see my money to go to the likes of Justin Bieber (who I
             | don't listen to), whereas I would much prefer it goes to
             | the smaller ambient and indie artists that I like to listen
             | to while working.
        
             | tedunangst wrote:
             | Spotify should charge by the minute so you turn it off when
             | you're not actually listening.
        
               | mikepurvis wrote:
               | They do kick you off after a while if you're a free
               | account, but the marginal cost of the bandwidth for them
               | is basically nothing. Anyway, it's 2021-- who would
               | accept a pay-per-time-listened Spotify in an age where
               | Netflix, Hulu, Prime, and Disney+ are all all-you-can-eat
               | for a similar price?
        
             | anchpop wrote:
             | If there's two groups of people, one who listens to pop
             | music for 10 hours a month and one who listens who indie
             | artists for 20 hours a month (which could easily be the
             | case if their recommended playlists are mostly indie
             | artists as mine is), then switching to the model you
             | propose would reduce how much money indie artists make,
             | right?
             | 
             | It seems more fair to me that artists would get a set
             | amount of money per stream, rather than the amount they get
             | being dependent on how many other songs their listeners
             | listened to.
        
               | mikepurvis wrote:
               | I think the argument is not that it's the 10 vs 20 hour
               | listeners, but rather the 10-40 hour listeners (workday)
               | vs the 700 hour listeners (radio playing in the corner of
               | a breakroom somewhere).
               | 
               | The 700 hour listener has no audience and no human
               | curation, and yet it's got 10x the influence on who gets
               | paid by Spotify.
               | 
               | The article I linked also makes a really good point about
               | this model motivating artists to encourage listeners/fans
               | to listen to whole albums rather than single songs--
               | right now if you're playing Spotify for revenue, the only
               | thing that matters is landing your songs on popular
               | playlists where they will get hundreds of thousands of
               | passive plays. The incentives there are not really
               | aligned to what anyone wants long term out of music.
        
               | babelfish wrote:
               | Right, but artists don't care whether you're listening to
               | their music actively or passively. Whether you stream
               | 10-20 hours or 700 hours, 1 stream is 1 stream. I don't
               | see why this should affect the payout
        
               | edoceo wrote:
               | Doesn't Spotify say "don't play at work"? Seems it
               | shouldn't be on in the break room
        
               | Closi wrote:
               | It's not inherently clear to me that one play should be
               | paid more than another play.
               | 
               | In fact, having a different fee per play dependent on the
               | user is a pretty opaque and unclear metric. "How much are
               | 1 million plays worth? It depends on your audience - if
               | your listeners listen to lots of music you get paid less
               | per play, and you will just have to trust us to compute
               | an appropriate fee for you correctly."
               | 
               | No matter how you cut these things there are pluses and
               | minuses . You seem to think that Universal should get
               | paid less for a single Katy Perry stream played from a
               | global playlist compared to a small indie song streamed
               | in a private playlist, and while that's a valid opinion
               | it's not intrinsic or even self evident to me.
        
               | mikepurvis wrote:
               | I don't think it would be that hard to show a small
               | histogram which had your plays bucketed across different
               | levels of commitment, engagement or some similar metric.
               | Or instead of doing it that way, you'd bucket the users,
               | so say "for song X, you had 30k unique users listen to it
               | in the royalty time period, and here's a histogram of how
               | engaged they were, with the left side being a small
               | number of users who listened to it a lot or didn't listen
               | to much else, and the right side being the large pool of
               | users who heard it once and listened to many other
               | things.
               | 
               | The reason this is good for artists is that it rewards
               | them for what many want to be cultivating anyway: a
               | relationship with enthusiastic fans, rather than faceless
               | "plays" which could have come from anywhere.
               | 
               | In any case, obviously the conversation is DOA if you
               | start it from a foundational assumption that "a play is a
               | play", but if we acknowledge upfront that artist
               | compensation has always been weird and often quite unfair
               | (see radio royalties, for example-- they sure as hell
               | aren't getting compensated by how many people were tuned
               | into a radio station playing their song), then there's
               | room to discuss better options in a new medium that sits
               | somewhere in between the old roles filled by FM radio and
               | private collections of physical media.
        
               | Closi wrote:
               | > In any case, obviously the conversation is DOA if you
               | start it from a foundational assumption that "a play is a
               | play"
               | 
               | That's not my foundational assumption, but I've also not
               | heard a compelling argument that one play / minute
               | streamed _should_ be inherently more valuable than
               | another play  / minute streamed.
               | 
               | It's also not clear how this value would be calculated,
               | because I also don't think it's clear that proportion of
               | listen time by user necessarily captures the difference
               | in 'value' of one play against another.
               | 
               | It also feels like it will be very complex to negotiate
               | with rights providers. Spotify's current negotiations
               | with rights providers are really simple and easy to
               | understand - we divvy up our revenue by play count, you
               | are responsible for $x revenue by this metric, so let's
               | negotiate the %. Moving all providers to another weird
               | metric would be an extremely tough thing to do,
               | particularly because having half on one and half on
               | another would likely happen for a crossover, and would
               | result in a loss of profit during the transition period.
        
               | mikepurvis wrote:
               | I don't think it'll necessarily happen via Spotify
               | renegotiating it. It'll happen via a competitor offering
               | this scheme, and indie labels pulling their content from
               | Spotify.
               | 
               | The obvious player to offer this competing service is
               | Bandcamp. They haven't yet, though an awful lot of the
               | pieces are in place-- they have a mobile app that lets
               | you trivially stream anything you've ever purchased and
               | listen on trial to things you haven't, and it even has
               | genre playlists and recommendations:
               | 
               | https://www.npr.org/2020/08/19/903547253/a-tale-of-two-
               | ecosy...
        
             | natdempk wrote:
             | I agree and I think this is really the key demand that they
             | should have organized around. Splitting up the revenues
             | based on what you actually listen to is really how things
             | should work from a fairness perspective to artists. It also
             | is likely more compatible with heavier listeners than their
             | demand of 1c per stream. To put that number into context, I
             | listen to ~1000 songs per month on Spotify and I pay $2.50
             | for Spotify each month using a family plan. I'm not sure
             | how the economics of 1c per stream are supposed to work out
             | there.
             | 
             | Soundcloud has already gone in the direction of paying out
             | based on what you actually listen to, and it would be great
             | to see Spotify and other platforms follow suit. See
             | http://fanpoweredroyalties.com/ for more details on
             | Soundcloud's implementation.
        
             | potatoman22 wrote:
             | Aren't your listens to an indie artist still driving up
             | their listens across the platform? It's an interesting
             | point that Spotify's algorithms probably drive more listens
             | to popular artists, but I think overall listen-count it
             | still the most equitable metric.
        
               | mikepurvis wrote:
               | The point is that it's about valuing the content which
               | actually makes or breaks people's decision to subscribe
               | to the service. Spotify is convenient, but it wouldn't
               | survive on top-40 content because people would just go
               | back to their MP3s or listen to it on YouTube.
               | 
               | I'm pretty sure that Netflix understands this, by the
               | way-- they know that deep-pocketed competitors like
               | Amazon are going to eat their lunch if they try to do
               | mass-appeal prestige shows starring A-list celebs, so
               | they only do a few of those (enough to basically fill the
               | homepage), while leaning hard into extremely niche
               | content. Like, have you seen how many weird cooking shows
               | there are on there? Or Hallmark Christmas movies? This is
               | stuff that's harder to find elsewhere, and there are
               | dedicated audiences on Netflix who are _mostly or
               | exclusively consuming it_. If Netflix 's internal
               | accounting worked like how Spotify pays royalties, those
               | shows would be instantly canceled in favour of new
               | primetime-style sitcoms.
               | 
               | But they aren't, and I think it's because there are pools
               | of their subscribers who will cancel the service if there
               | isn't a steady stream of the specific content they're
               | interested in. Thus, their subscriber $$$ go _directly_
               | to funding that content, rather than into a general pot
               | that 's broken up by raw viewership numbers.
        
         | [deleted]
        
         | MomoXenosaga wrote:
         | Isn't Spotify barely making a profit?
         | 
         | I think the real issue here is that people just don't want to
         | pay as much for music like they did during the golden age of
         | the CD. Most Spotify users are still on the free tier. Blaming
         | streaming companies isn't gonna change that.
        
           | hansvm wrote:
           | Last I checked that wasn't exactly the problem, at least not
           | by itself -- even accounting for inflation we're spending
           | several times more per capita per month on music than we used
           | to "during the golden age of the CD." Moreover, a much higher
           | percentage of that revenue is actually going to artists than
           | in years past.
           | 
           | Faced with that reality, it would be interesting to know what
           | is actually going on. Is total dollars spent on music not
           | reflective of what artists used to make? Are there just that
           | many more musicians than there used to be? Was it way harder
           | to make a living making music in years past than we're giving
           | it credit for? Are artifacts of pay-per-listen rather than
           | pay-per-song causing a different payout distribution
           | impacting the majority of musicians (e.g., you used to have
           | to buy a CD to listen to a song just once)?
        
           | [deleted]
        
         | ksec wrote:
         | And that is 75% to Labels.
         | 
         | Why aren't these people targeting those labels?
         | 
         | Why aren't these people targeting others like Apple?
         | 
         | Or they want Spotify to operate as a Non-Profit because Apple
         | is currently making Apple Music a Net Zero Profit business? (
         | Diluting there services revenue margin )
        
         | ArkanExplorer wrote:
         | Are there any figures on the % of overall Spotify revenue taken
         | by platform owners ie. Apple and Google?
        
           | Eridrus wrote:
           | None. Spotify doesn't use any of the platform mechanisms for
           | monetization that take fractions of revenue. This is why you
           | have to sign up on the web for Spotify.
        
       | varispeed wrote:
       | Why artists on Spotify are not treated the same as Uber drivers?
       | They are in fact employees providing content for the platform.
       | From that perspective, Spotify should be paying at least a
       | minimum wage for every artist signed on to the platform, plus any
       | streaming money as a bonus. There is also a problem that some
       | artists (from major labels) get more money than small artists for
       | the same number of streams. I think this should be looked into by
       | a regulator. The same way as workers doing the same job should be
       | paid the same salary, artists should be receiving the same money
       | per stream.
        
         | FalconSensei wrote:
         | > They are in fact employees providing content for the
         | platform. From that perspective, Spotify should be paying at
         | least a minimum wage for every artist signed on to the platform
         | 
         | the solution would be to remove all indie artists, and most of
         | the rest too, and only keep the top 1% of pop/rock musicians.
        
         | cwkoss wrote:
         | Not all music has value. Music is almost never a full time job.
         | Supply vastly outpaces demand.
         | 
         | If I record the sound of myself taking a crap and upload it to
         | Spotify, do I deserve to get a perpetual minimum wage for being
         | an artist?
        
       | emilecantin wrote:
       | They only hint at this, but I think a user-centric distribution
       | model would be much better: define a percentage split (let's say
       | 30% for Spotify, 70% for artists), and split that percentage of
       | revenue between the artists THAT THE USER LISTENED TO.
       | 
       | I think that they currently use a global split, which over-
       | represents "users" like stores, gyms, etc.
        
         | jlelse wrote:
         | That's what Deezer proposed: https://www.deezer.com/ucps
        
         | Aissen wrote:
         | Indeed, it would be much more interesting. Deezer might be on
         | track to implement it in France (not sure when?) but a recent
         | study (in french) gives a lot of information on its potential
         | impact:
         | 
         | https://cnm.fr/wp-content/uploads/2021/01/CNM_UCPS_SyntheseF...
        
       | DocTomoe wrote:
       | Meanwhile, I have spent quite a bit directly to bands using band
       | camp, buying music and vinyl there.
       | 
       | In the end, if Spotify is not a sustainable business model for
       | you as a musical artist, maybe it is time to look for
       | alternatives, especially those where they do not directly compete
       | with mega-acts?
        
       | csommers wrote:
       | Then don't put your band there. Oh wait: you'd be complaining
       | about Bandcamp and no recognition then.
       | 
       | Not everything needs to be "justice". Quit diluting words and
       | actions.
        
       | bryanrasmussen wrote:
       | so streaming music has eaten several different cakes - it has
       | eaten the cake of radio in which I doubt the artist got 1p per
       | play, it has eaten home taping in
       | https://www.nytimes.com/1985/11/21/arts/issue-and-debate-roy...
       | in which there was some money paid out for the purchase of home
       | taping equipment but which I think would not at all reach 1p per
       | listen, it has eaten into the album which often cost enough that
       | people bought them intermittently as a few albums could represent
       | a significant part of disposable income, and it has eaten into
       | the singles market (a small record with a b-track on the opposite
       | side - already quite killed by cassettes and CDs)
       | 
       | The people fighting for 1p per stream want to focus on the
       | killing of the album because in that way they look like poor
       | mistreated artists who are just asking for crumbs considering
       | what was taken from them.
       | 
       | And spotify etc. want to argue they are the ones who killed the
       | radio, and thus it should cost them hardly anything and they are
       | already paying way too much.
       | 
       | But at any rate 1p per stream is actually quite a significant
       | increase in price considering what the user gets.
       | 
       | With an album one got album art etc. Lyrics / liner notes. And a
       | number of songs - let us say 16 songs.
       | 
       | Nowadays you have to do your own work for the album art and
       | lyrics, and could conceivably be asked to pay separately for
       | them.
       | 
       | This is all a long time ago but I would think it was $10 dollars
       | per average CD during the heyday. (somebody here surely knows the
       | actual number)
       | 
       | So 62.5 pennies per song if 16 songs.
       | 
       | Perhaps it should be 1p per stream, max cost 63p per song per
       | user?
       | 
       | that of course still means spotify eats the part of the market
       | that buys more than one version per year, as someone with ADHD I
       | have had to buy London Calling about 20+ times in my life. At
       | some point I think I should get it for free.
       | 
       | so 1p per song streamed, max 63p per person per song every two
       | years. If they asked for that I would think that is maybe a bit
       | more than its worth, but also approaching fairness.
       | 
       | But they aren't asking for that, even though they should be able
       | to think these things through easier and quicker than I can - so
       | until they start asking for something resembling an actual fair
       | deal I say screw them.
        
         | bryanrasmussen wrote:
         | just noting also - if you were to make 1p per song without any
         | of my proposed limitations or similar then given the fact that
         | people consume the songs they loved in their 20s all their
         | lives, if you could manage to have a couple top streaming hits
         | for that age group for a couple years you might just be able to
         | go fishing for the rest of your life!
        
       | prionassembly wrote:
       | Honest question: why are all those people not on Bandcamp
       | instead?
        
       | blfr wrote:
       | What is the average number of streams per user on Spotify?
       | According to Last.fm, I listened to 55k songs last year, vast
       | majority of it through Spotify.
        
       | philderbeast wrote:
       | many of the demands listed, while well intentioned, are ill
       | considered at best.
       | 
       | Take the first demand for instance, pay $0.01 per play. on the
       | face this sounds fine, until you look at the economics of this.
       | Spotify Premium is $9.99, that means for every premium user there
       | is only 999 plays per month at BEST if you don't consider any
       | other overheads, before that payment is exhausted (not including
       | things like discounts for 12 month plans, student and family
       | pricing).
       | 
       | This is not to say artists shouldn't get paid more, but how many
       | people would take say a 10x price increase to fund this level of
       | payment?
       | 
       | That's not to mention they also want to remove the income stream
       | of artists paying for increased plays on the platform (pushing
       | more cost to the user)
       | 
       | again, the demands may be well intentioned, and many should just
       | be adopted such as crediting all labour for a recording, but
       | obviously no-one has looked at the economics' it would take to
       | actually realise the level of payment being asked for here and
       | thought about if consumers would be willing to pay that price.
        
       | RHSeeger wrote:
       | > Pay us at least one cent per stream
       | 
       | > Spotify generally pays between $. 003 and $. 005 per stream
       | 
       | Is Spotify making so much money that paying 3 orders of magnitude
       | more money per stream is a realistic option?
        
         | Reason077 wrote:
         | They're not asking for "orders of magnitude" more, but 2-3X
         | more. The current average royalty is 0.38c per stream, and they
         | want 1c per stream.
         | 
         | That said, apparently most of Spotify's revenues already goes
         | to pay artists, so it would not be achievable without
         | significant increases in Spotify's fees. This would in turn
         | reduce user numbers, leading to fewer streams, more users
         | turning to piracy, etc.
        
           | RHSeeger wrote:
           | The places I'm looking show much, much lower numbers.
           | 
           | > Spotify generally pays between $.003 and $.005 per stream
           | 
           | https://www.businessinsider.com/how-much-does-spotify-pay-
           | pe...
           | 
           | > Spotify paid the artists $0,0032 per stream
           | 
           | https://soundcharts.com/blog/music-streaming-rates-payouts
           | 
           | It's also worth noting, we're not talking about the total
           | amount payed per stream, we're talking about the amount that
           | makes it specifically to the artists. From the article being
           | discussed
           | 
           | > To pay the median American monthly rent ($1,078) an artist
           | needs to generate 283,684 recurring streams monthly.
           | 
           | Those number directly align with 0.38c per stream going to
           | the artists (283,684 * 0.0038 = 1078). And since everywhere
           | else seems to indicate that somewhere around 3-5/100th of
           | that amount actually goes to artists, I'm curious what the
           | disconnect it.
        
             | Reason077 wrote:
             | > _" The places I'm looking show much, much lower numbers.
             | > Spotify generally pays between $.003 and $.005 per
             | stream"_
             | 
             | This seems consistent with the 0.38c suggested in the
             | www.unionofmusicians.org website. "$.003" = 0.3c, right?
        
               | RHSeeger wrote:
               | I apologize, you are right. I misread it as talking about
               | cents based on the second reference and then my brain
               | just decided to take it's own path.
               | 
               | Thank you for taking the time to make me go back and look
               | at my numbers. My apologies for wasting _your_ time.
        
       | andrew_ wrote:
       | Has music become a commodity, and if so, should it face price
       | regulation such like other commodities?
        
         | aksss wrote:
         | Noise is a commodity.
        
       | johbjo wrote:
       | Copyright and licensing is complicated, in the sense that a track
       | has many different copyright holders, and the record companies
       | usually make sure to own distribution rights by contract. The
       | composers and artists might be powerless, even though they own
       | the actual rights (which can not be sold or transferred). This
       | partly the reason why the major labels hold so much power.
       | 
       | Here is a great source for learning more:
       | http://copyx.org/lectures/
        
       | Reason077 wrote:
       | It's curious how the advent of streaming has seemingly resulted
       | in boom times for television and film producers, yet apparently
       | not so for musicians.
       | 
       | Yet we pay roughly the same per month for a Spotify subscription
       | as we do for Netflix or Amazon Prime.
       | 
       | Is this just because when it comes to music, the revenue is
       | spread much more thinly, amongst more artists?
        
       | oh_sigh wrote:
       | Justice would be paying out revenue on a per-streamer basis.
       | 
       | I pay $10/mo to spotify, lets say $7 makes it to artists. If I do
       | 100% of my streams for Obscure Band X, shouldn't 100% of my $7 go
       | to Obscure Band X?
       | 
       | Right now, I end up a large fraction of that $7 to Taylor Swift,
       | the weeknd, drake, etc, and not the actual performers I listen
       | to.
        
       | m-p-3 wrote:
       | Seems like the artists are barking at the wrong tree. Don't get
       | me wrong, I'm all for artists getting their fair share for
       | something they created.
       | 
       | Spotify has to deal with the record labels because they own the
       | licensing rights, there isn't much Spotify can do about it
       | themselves.
       | 
       | The only thing I could see Spotify doing is to become a label
       | themselves, and giving a bigger slice of the piedirectly to
       | artists under them. But that could also bring some consequences,
       | like becoming Spotify-exclusives, etc.
        
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