According to The Guardian, an artist is paid $0.001128 per song stream after the label gets it’s share. A million streams of a song will pay $1,128. How many songs will get played a million times? Is this a sustainable business model for artists?
Spotify could be seen as a vehicle for promotion. If a trending song lead to higher CD/LP sales, I could see the angle. There will also be many who feel any media beyond streaming is antiquated. There will be others who simply refuse to pay for physical media as well as streaming. These are obvious points.
What’s the answer? Should Spotify pay artists more? We will find out how profitable the company is once it goes public and must disclose their sales revenue numbers. I believe at that time it will be easier to reassess the streaming business model. There should be a fair ratio of profits to artist payout. What do you think? Do you use Spotify or other music streaming services? Do you buy physical media and support your favorite artists?