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Old 17th March 2009   #11
Raygun
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To put it short: The money Spotify distributes to the labels/producers/songwriters are based on the amount of money they get from subscriptions and then divided with the actual number of times a song has been played. In reality, the model probably is a little more complicated than that but this is the basic concept. If I've understood it correctly, the actual subscription fee is vital, not the income from advertising.
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