Spotify has been, in recent years, the victim of the occasional attack by some musicians due to the little or nothing that the service (and streaming services in general) pays artists who use the service to promote their music. With the aim of trying to put a little peace in this discussion, Spotify has launched a new service in which it intends to explain its business model in detail and thus specify how it calculates the corresponding payments per artist.
The website, about which we read in TNW and born under the name Spotify for Artists, aims to expose all the factors that influence the payment process to the artist, leaving aside the obvious pay by stream.
On that website Spotify has made it clear that almost 70% of its profits go to those who own the rights to the firm, including artists. Regarding the individual payment to the artist, it all depends on the popularity of the artist within the service, putting, as an example, that an artist that generates 2% of stream in the users receives 2% of the total benefits.
The total benefits of Spotify are thus generated through subscription systems and advertising in the free version. It will be this amount and the popularity of the artist that will mark that the artist receives one amount or another, including the influence of factors such as the country where the service is operating, the number of users who pay and the amount of music that is processed in total.
In short, a new website for artists to keep an eye on the operation of Spotify, which has made it clear that it is not only based on a pay per stream.