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Spotify, the music-streaming service that has recently come under fire over the issue of royalty payments to artists, has released an analytics platform where artists can see exactly how they money flows.
Recently, artists like David Byrne, Thom Yorke and Beck have castigated services like Spotify, claiming the streaming business model is untenable for any artist trying to forge a sustainable career.
Spotify claims it has increased revenues for artists and labels, and says it has paid out more than $1 billion in USD. According to the company, 70 percent of its revenue is paid out in royalties to rights-holders.
The company claims its free, ad-supported tier discourages listeners from pirating content. Once the listener is using the free tier, the company seeks to drive users to its premium subscription tier at $9.99 per month. “Spotify’s model aims to regenerate this lost value by converting music fans from these poorly monetized formats to our paid streaming format, which produces far more value per listener,” the company says.
Go to spotifyartists.com for more information.