Spotify CEO says it pays $6 million a yr to a prime artist like Taylor Swift
Within the wake of Taylor Swift clarifying her causes for opting out of Spotify, the streaming service’s CEO took to the corporate weblog to supply a rebuttal. Daniel Ek says that “a prime artist like Taylor Swift” can earn greater than $6 million per yr from the outfit, and that quantity solely stands to rise. In fact, labels are those who organize licensing agreements, so we will not make sure how a lot of the cash is definitely making it to Ms. Swift and her cohorts. Spotify on the entire has shelled out over $2 billion in royalties to date, and its trying to be clear about the way it works. “We’ll do something we will to work with the business to extend transparency, enhance velocity of funds, and provides artists the chance to advertise themselves and join with followers,” says Ek. “That is our duty as a pacesetter on this business; and it is the fitting factor to do.” So the place is that cash coming from? Of its 50 million customers, 12.5 million are paid subscribers, accounting for $one hundred twenty every per yr in month-to-month charges. Some fast arithmetic signifies that sum to be $1.5 billion.
Ek additionally takes on the argument that streaming choices like his are hurting album gross sales. Within the submit, there are a number of examples of artists that held each the primary spot and have been out there on Spotify on the similar time. He is additionally fast to level out that album gross sales/downloads on the entire proceed to say no, citing slumping numbers in Canada earlier than the service was out there there. Positive, Taylor Swift bought over 1.2 million copies of 1989 in every week, however that hadn’t been accomplished in over ten years, and she or he has the primary platinum album within the US of 2014… in November. “We’re getting followers to pay for music once more. We’re connecting artists to followers they might by no means have in any other case discovered, and we’re paying them for each single pay attention,” Ek explains.
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