Pigeons & Planes has an interesting article up quoting Davis Macias, owner of the Thirty Tigers, titled Behind the Numbers: What Artists Earn From Spotify. Despite reports on the contrary, it seems quite possible for artist to earn revenue through the streaming service and when it comes to long run, possibly even more than in a download model:
“Once that sale takes place, the transaction between artist and consumer is complete. But if you are a fan of an artist or a song, and you choose to listen on Spotify, then EVERY LISTEN earns an additional half a cent.”
“It’s also important that you understand how Spotify splits out the money that they bring in. Of the $10 that I spend monthly for Spotify, $6 goes to the owner of the recordings, $1 goes to the owner of the publishing copyright, and Spotify keeps $3. That is exactly the same proportion by which revenues are shared in the iTunes model, and that 70% which is shared by the owners of the recording and publishing copyrights is a higher percentage than they share for goods sold at physical music retailers.”
Spotify might have some severe competition coming their way though, according to Macias. For the full article offering his insights in a tumultuous but very interesting time in the music industry, hop on over to Hypebot.