Spotify is inadvertently complicating the birth of the next Metallica

Yesterday Spotify released its annual report for the first quarter of 2022

accordingly, his income (no profit) in the first 3 months is 2.66 billion euros. / source

If we extrapolate it annually, they earn around 10 billion euros. This is the revenue from the ads they serve to a total of 182 million paying subscribers and a total of 422 million (referred) listeners. On the other hand, the microscopic numbers that Spotify pays artists per stream (let’s keep it simple, since the copyright holder is actually an artist) are debatable.

To make an average of $1000 on Spotify, your song must have been played an average of 300,000 times. Let’s move on to this American-European listener. In other words, the money paid when listening to American-European is different from the money paid to the artist when listening to Turkish. For example, the number of streams and earnings of one of my own songs:

$130 for 115,700 breaks. So in order for me to get $1000, my song has to be heard about 800,000 times. By the way, that’s the gross money that wasn’t taxed or anything. It’s like a 2 month minimum wage with a tax cut.

Why did I mention the $10 billion Spotify makes annually?

Without touching the $10 billion that Spotify makes per year if it keeps them all and distributes them evenly to the content producers on Spotify (i.e. 1 share for Metallica who heard billions, 1 share for 500 men who listened), the money it can distribute is $1000 per artist.

So can this system go on like this?

Well, basically the problem here isn’t that Spotify doesn’t transfer the money it makes to the artists. which paid $7 billion in royalties in 2021, meaning it pays around 65% of the money it makes in royalties. The problem with this is that the size of the cake to be distributed is small. because the value people value to have all the music in the world at their fingertips is $10 in developed countries and 18 lira ($1.22) in countries like ours.

Alternatively, when you buy things like CDs or directly from the artists’ band camp, there is a minimum cost of $5-6 per album. If you are buying a vinyl record, new vinyl records are in the 200-300 lira range. ie between 15-25 dollars.

An example: the Bandcamp page of US musician Andrew Combs.

in summary

Streaming services are essentially selling a massive convenience, very, very cheap. They sell it so cheaply that most artists have to go blank on the money that comes from online streams. and the subject turns and gets to the point “the king who can cut tickets”.

that’s creative “Tickets cannot be issued” but it makes it difficult to make music worth listening to. In conclusion, by listening to Metallica on the cheap, we’re actually making it harder to create the next Metallica.

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