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Spotify: Not So Fair Trade

spotify

The Guardian posted a fascinating article on the online streaming service Spotify on its music blog recently. Curious to see how the artists featured on the site could be compensated with so few advertisements on the website itself, the writer delved into the site's set up, with interesting findings. Evidently, the major labels' enthusiasm for Spotify is largely due to the large percentage of Spotify shares that they receive—18%, to be exact. What the labels paid for their shares is still unknown. Indie labels, in contrast, receive no advance, no minimum per stream and only a 50% share of ad revenue; unsigned artists will not be featured on the site at all. Check out the article here.

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Spotify: Not So Fair Trade