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Scott Pactor

i hate to beat a dead horse on this issue, but does no one recognize that spotify payments have gone up on a per play basis in markets like sweden and the uk? Is the per stream payment not fixed to the revenue received by spotify a la the way salary caps are fixed in pro sports?

at the every least, the increase in per stream payment in other markets deserves to be mentioned when you talk about the "low" per stream payment for spotify in the us.

just as a single example, the per stream pay out in sweden is something like seven or eight cents a track.

Frank Woodworth

13 Billion songs divide by 3 million users is roughly 4,300 songs per year per person. This is 12 songs a day, or roughly one album of listening on average per day.

It all depends on usage. If that goes up per stream payment will go down, if it goes down, per stream payment will go up.

All of this arguing over per stream payment detracts from the issue of aggregate payment, and aggregate payment potential. That is where the math of streaming begins to possibly make sense.. at scale.

Spotify generated the majority of their revenue on predominately 600,000 users (20% of 3 million) if they pay out 70% that is 50 million dolalrs to be doled out.

Artists need to take their total revenue from spotify and multiply it by 37.5 which simulates revenue 22 million subscribers, which if spotify hit would put them on par with netflix in terms of subscribers.

After that they could multiply their current revenue by 160 as that would put spotify on par with pandora in terms of users.

That is how much money the service will generate at scale if the plays stay divided at the same ratio. Of course it is unlikely that the ratio will stay the same, there will most likely be a small amount big winners and a large amount of paltry payments.

There are many ways to do this, but the per stream payment is the worst indicator of future success. It is stuck in the compulsory payment model of thinking that the music industry has always operated in.

I don't know if streaming will ever make sense for artists and rights holders financially, but I do know that the per stream payment is a red herring argument.

Scott Pactor

my math was wrong on the sweden pay out. i take it back.

Catherine Hol

One number I didn't see here ... the total amount paid out to artists/rights holders in the given period?

Ben Fruin

I find the app finder usage rates to be particularly surprising. It seems as though every Spotify user I have talked to is unaware that the apps page even exists.


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