We hate to say we told ya so, but… Below is our post from September 2015. Two years ago we predicted the inevitable truth of the all you can eat Spotify subcription model. Like many of our predictions and proposals (example; windowing titles) we’ve had to wait for the industry to catch up to us. Today, two years later, Digital Music News confirms our prediction.
Read the report from Digital Music News by clicking the headline link here.
Exclusive Report: Spotify Artist Payments Are Declining In 2017, Data Shows | Digital Music News
Our original post from 2015 is below…
Spotify Per Play Rates Continue to Drop (.00408) … More Free Users = Less Money Per Stream #gettherateright
Down, down, down it goes, where it stops nobody knows… The monthly average rate per play on Spotify is currently .00408 for master rights holders.
48 Months of Spotify Streaming Rates from Jun 2011 thru May 2015 on an indie label catalog of over 1,500 songs with over 10m plays.
Spotify rates per spin appear to have peaked and are now on a steady decline over time.
Per stream rates are dropping because the amount of revenue is not keeping pace with the number of streams. There are several possible causes:
1) Advertising rates are falling as more “supply” (the number of streams) come on line and the market saturates.
2) The proportion of lower paying “free streams” is growing faster than the proportion of higher paying “paid streams.”
3) All of the above.
This confirms our long held suspicion that as a flat price “freemium” subscription service scales the price per stream will drop. As the service reaches “scale” the pool of streaming revenue becomes a fixed amount. The pie can’t get any larger and adding more streams only cuts the pie into smaller pieces!
2 thoughts on “If Only Artists and Managers Had Listened To Us : Spotify Per Stream Rates Keep Dropping”
Reblogged this on Zapateria: The World of Zapatero and commented:
I’ve been following The Trichordist for a while now. Their articles on recording artists’ rights are always interesting. If you ever wondered how much money artists make from streaming services like Spotify, this short piece is a good place to start!
Reblogged this on Dae Bogan Music and commented:
An alarming truth about Spotify royalties…
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