Payments from Spotify to independent digital music distributor RouteNote are growing steadily and now approach 20% of overall royalties, according to stats released by the company. "I’m a firm believer that Spotify is a great innovation and that its where music consumption is heading," said UK based RouteNote exec Steven Finch. "It has also been shown that Spotify has helped to increase music download sales and not cannibalize them, and this is what we have seen here." THE STATS:
Spotify as a percentage of RouteNote’s overall royalties:
- Q3 2010 = 2.71%
- Q4 2010 = 5.55%
- Q1 2011 = 5.07%
- Q2 2011 = 7.34%
- Q3 2011 = 8.84%
- Q4 2011 = 11.18%
- Q1 2012 = 18.55%
"Additionally, the actual royalties numbers per play are increasing month by month. These per play numbers are a lot higher than you would expect to see when you received royalties from YouTube ($2.00/1000) or even basic advertising royalties ($1.00/1000)."
In Scandinavia, where Spotify has operated the longest, some music companies report payments from the music streamer account for 40% of royalties received.