Friday, November 27, 2009

Fair Play? A Million Spotify Streams Earned Gaga $167

Many believe that Spotify is the solution when it comes to online music streaming services. However, there has been speculation surrounding Spotify's business operations. According to Swedish paper Expressen, Lady Gaga (arguably one of the most listened artists in the world) and her songwriter Redone made just $166.56 in songwriting royalties from one million plays of her hit Poker Face. Spotify stresses that it pays "not only collecting societies, but also publishers and record companies". They also stressed that the $167 is from "way before we'd established ourselves as a music service and built up a large user base". Some believe that digital platforms should give artists the same ratio of rights revenue they get for CD sales. However, the main issue that is prevalent in the news, is the labels stake in the service which is rumoured to be that they are getting paid twice. Overall, there is still fear even with Spotify, which has received alot of spotlight for its business model. Spotify's freemium model is down to a mistrust of free music and has failed to establish a significant number of paid accounts. These services are doing a great job of bring exposure to main stream artists but we are slowly seeing that these services have no effect on P2P piracy, and are not helping indie/underground artists like we all thought they would.

-Ryan Dolan

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