How the music giant distributes its revenue and disappoints artists

The sad truth: How Spotify is bankrupting artists
Spotify’s money distribution: a system of disappointment for musicians

In the digital age, the music industry has radically changed. Streaming services like Spotify dominate the industry, promising artists easy access to a global audience. But the promise of this music giant seems hollow for many artists when you look at how revenue is distributed.

The sad truth: How Spotify is bankrupting artists.

Spotify has completely changed the way we listen to music, creating a platform where artists can showcase their music to millions of people worldwide. However, the money this platform takes in rarely benefits the artists. In fact, Spotify is driving many artists to ruin. The reason is simple: most of the revenue generated through Spotify goes to the music industry, not to the artists themselves.

The disappointing truth is that the vast majority of artists on Spotify receive a fraction of a cent per stream. While this amount can grow to a substantial sum for large musicians due to the mass of streams, the revenue for small, up-and-coming artists is often minimal. As a result, many talented musicians are unable to realize their full creative potential, as they have to focus financially on other ways to generate income.

Spotify’s money distribution: a system of disappointment for musicians

Spotify’s revenue distribution system is a major disappointment for many artists. The streaming provider does not pay artists directly, but rather to record labels, publishers and collecting societies. These in turn often distribute the revenue to the artists according to their own criteria, which are not always transparent. This system results in lesser-known or up-and-coming artists receiving only a very small portion of the revenue.

In addition, the calculation of the payouts not only includes the total number of streams of an artist, but also the popularity of the tracks compared to others on the platform. This means that a song that is streamed less frequently will bring in less, even if it is listened to again and again by a loyal fan base. For artists whose music doesn’t fit into the “Spotify” mainstream, this can lead to a significant loss of revenue.

It’s clear that Spotify’s current model is disappointing numerous artists and leading to a system that enriches the music industry rather than the musicians themselves. While it is undeniable that Spotify provides musicians with a platform to distribute their music, the financial benefit they receive is often minimal. Hopefully, Spotify and other streaming providers will find ways to develop a fairer payment system that compensates all artists appropriately, regardless of their size or genre. Or that musicians themselves find ways to regain control of their music and their revenue.
Because fans go where the musicians are, not the other way around!