My mind is all over the place as I write this. I’m troubled as this is the second time this week I’ve read about Spotify’s per-stream rates being dismal, David McCandless put things into perspective with a great infographic, and your own blog puts them at $0.005 per play which is actually about the highest I’ve seen. Spotify, for me, has been the service that I wish I had years ago. I use it primarily as a music exploration tool, and if I find that I’m listening to one album a lot, I buy a digital copy, either through iTunes or Amazon MP3, or occasionally buy physical CDs for their liner notes or if they include something neat like a poster. Spotify has connected me to artists I’d have never found otherwise, and it has saved me from making purchases I would’ve regretted.
The issue, that would seemingly sweep the rug out from under your argument if it were not so, is that Spotify pays the artists a pittance. To this, I ask: How are the obviously failed negotiations between Spotify and the labels my fault? The issue really goes much deeper, when you realize that the big four record labels own a combined 17% of Spotify, and the two founders own 52%, so nearly 70% of Spotify’s decision-making process comes from people that are profiting very, very handsomely from the status quo. These labels simply were not acting in good faith, were not representing the best interests of the artists, and should be the real target of the outrage, here. Spotify is a business whose prime directive is … (More) “Letter to David Lowery”