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Major Record Labels Keep 73% of Spotify Payouts

Posted by Soulskill on from the all-about-the-benjamins dept.

journovampire sends this report: New record company figures out of France suggest that artists are being paid just 68 cents from every €9.99 monthly music streaming subscription – as major labels keep hold of 73% of payouts from the likes of Spotify. They’re followed by writers/publishers with a 16% share, and then artists – mostly paid by their labels – who get 11%.

2 of 157 comments (clear)

  1. Re:First grab by Gobelet · · Score: 5, Informative

    It's written plain as day in the article, on the SNEP chart.

    For every 9.99€ monthly subscription:

    Spotify or other streaming platforms ("Plateformes") get 2.08€
    Labels ("Producteurs") get 4.56€
    Performers (or artists) ("Artistes interprètes") get 0.68€
    Composers and writers ("Auteurs compositeurs éditeurs") get 1€
    And VAT is 1.67€

    Profit, pre-tax, is as follows:
    Composers and writers ("Auteurs compositeurs éditeurs"): 0.6€
    Performer (or artists) ("Artistes interprètes"): 0.68€

    Labels ("Producteurs"): 0.26€*
    Platforms: 0.1€*

    *Net profit margin estimated at 5% of revenue.

    But if you read the rest of the study, you'll see streaming represents 55% of digital music revenue in France in 2014 (16% total revenue for the industry).

    The music industry market is tanking a bit says the study, but the royalty payouts are stable.

    You'll find the full study here.

  2. See also "Spotify Artists" page by Wootery · · Score: 3, Informative

    Spotify explain their revenue-model and payout-model here.