Indie Distributor Says Spotify Payments “Growing Nicely”, Shares Stats

image from www.google.comPayments 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.

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  1. RouteNote is a very small distributor compared to those like CD Baby, TuneCore, Venzo Music, and Zimbalam.

  2. Can i ask where you get your claim of “leading?”
    you are certainly not according to your alexa traffic ranking or the amount of artists you have. I’d rather hear figures from a more established company. I am in the UK and I have never heard of you before this thread.

  3. In Scandinavia, where Spotify has operated the longest, some music companies report payments from the music streamer account for 40% of royalties received.
    The last accounting for Sweden for Spotify that I have is for December 2011 in the amount of $8.12. I doubt if we had a single paid download for the whole of 2011 in Sweden, formerly one of our strongest markets. Worldwide, we are consistently over 2000 paid downloads monthly.
    UK? Spotify is no higher than 5% vis a vis other digital revenue sources, with $1.84 reported for streaming for the same period, Dec ’11, and $0.60 for (a) download.

  4. RouteNote is an aggregator not a creator. kinda changes the perspective on “fair”…

  5. Hypebot editorial, I’d be curious how this story came to land on your desk. Who really owns RouteNote? And without any $$$$ figures, the percentages are useless. I suggest everyone check out their site. With all do respect, it doesn’t look like this company is leading any digital revolution. As a matter of fact, this looks like a company of 5 people working above a fish n chips shop in Cornwall. Steve Finch, I’d love to know your background in the industry. And Robbie, I agree since Spotify hit Sweden the downloads have been nil from that territory.

  6. I would be happy to answer any of your questions … please contact me via our site at http://routenote.com or feel free to drop by our office any time your in Cornwall, so you can see that unfortunately we are nowhere near a fish and chip shop.

  7. RouteNote is poorly design and it looks like they stole ideas from other companies and made it into one. It also looks confusing and shady. I don’t think Mr. Finch knows what he is doing.

  8. For me, it is not a question of Finch “knows what he is doing,” the question is “what are his motives,” what is his relationship to Spotify and why was this story deemed newsworthy? We have to start questioning the sources and their motives. This is the point Woodward and Bernstein made several weeks ago in the New York Times, the Internet has reduced the scale of substantive reporting. Why should any of us believe anything we read on this or any other site. Percentages without true dollar amounts is a meaningless exercise. Shame about the Fish and Chips shop Steve….but I urge everyone to visit their site (RouteNote) and form your own conclusions.

  9. i have a hard time buying this because of the simple fact that almost all of the spotify payout goes to only a handful of the biggest artists. the indies get squat.

  10. I visited their blog, loaded with Spotify Propaganda. Tune core is doing the same thing. But it only stands to reason. Their business is based on getting bands to sign up for their services, which are providing access to streaming services, like Spotify.
    If you haven’t noticed, the word on the street with musicians is building against Spotify. And ultimately the musicians have the power, most of the time unless they’re hopelessly bundled to a major label to pull their material. This is one battle, I hpoe, the artists are up for. Spotify sets the floor for licensing uncontested, it will be a serious blow.
    What surprises me is that people aren’t up in arms about file sharing, cloud or no cloud. This will really put a hit on sales very big time.
    Will buckley, founder, FarePlay

  11. how does Finch call RouteNote THE leading UK distributor? it’s not even A leader. a follower

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