We are pleased to announce that we have now signed an agreement with Spotify meaning that all artists, including those that have already distributed a release, will now be able to have their content added to the service.
Spotify is offered under the same terms as the traditional download services we cover, with artists receiving 90% of all the revenues we receive from Spotify for streams of their music. The revenues paid by Spotify are 50% of what the service generates globally divided amongst artists based on number of plays and includes revenues from both advertising-funded ‘free’ accounts, and subscriber accounts. Based on our discussions with Spotify and experiences with other streaming services, we anticipate the royalty rates to be 1-2 Euro cents per ‘subscriber stream’ and 0.1 Euro cents per ‘free stream’.
Please take note of this when considering whether you want your content to be available on the service as these revenues are considerably less than are generated from traditional sales.
Despite the low revenues earned from Spotify streams there are a number of benefits to making your music available on the service; firstly Spotify has a download agreement with 7 Digital in the UK, meaning that anyone who likes a song can click straight through from Spotify to purchase it from the store so you can drive your fans towards the site to ‘try before they buy’.
There is also a promotional benefit to being on Spotify as the service is currently receiving a lot of media attention there are an ever increasing number of users for the service and this is a great audience to make your music available to and a great way for people to discover your music.
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