Spotify looks to squeeze record labels over streaming rights ahead of IPO

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  • Reply 21 of 21
    gatorguygatorguy Posts: 20,742member
    linkman said:
    Spotify is either poorly managed (paying employees too much/paying too much for everything/gouging VCs/the like), paying content providers too little, and/or not charging enough for ads and subscriptions. Their business model is currently a money pit for their investors.

    This graphic is quite telling about how well they pay (or at least used to pay, it's a bit old) vs. the competition and other media: http://www.informationisbeautiful.net/2010/how-much-do-music-artists-earn-online/


    I think it was recently reported that Spotify pays out $7 from every $10 (70%) in subscription payments. I remember Apple saying they'd pay out a percent or two more than that in return for having a free grace period where they paid out very little for new potential subscribers. At least according to Apple 70% is the flat-rate payout for music streaming subscriptions in general isn't it? But with Spotify having so many on free plans I can see it as an issue. At least Apple's free tier has time limits. 
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