Quote:
Originally Posted by Raygun  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. |
If that is genuinely how it works then they are f*cked.
I'm not paying for any music I don't own, for example, so I'm happy to support the ad-funded model only for stuff that I'm just going to stream. I know I'm not alone in that, friends and colleagues feel the same way. Their real money will still go to iTunes and CD stores, but Spotify fills a nice gap and also allows for better auditioning of stuff one *might* purchase later on.