Spotify's announcement comes along with the launch of a new site designed specifically for artists and other music professionals to learn more about its operation. December 3, 2013 7:14 AM PST Spotify has launched a new Web site detailing its business model for artists and other music professionals. And along the way, the company announced some interesting details on just how much cash it doles out. According to Spotify, its new site is designed to provide additional insight into its operation through the use of data and business analysis. As part of that, Spotify said on Monday that it has issued $1 billion in royalties since its inception. At this time last year, its total royalty payout was at $500 million. This year alone, Spotify has coughed up $500 million in royalties. Related stories Spotify gets $250M payday led by Silicon Valley investment firm Spotify steps up clip sharing with messaging app Tango Spotify to carriers: We don't need to be enemies GTA Online hit with launch problems Spotify creates 'Follow' Web button for more social tracking Spotify also tried to make the case that it's exceedingly generous with artists. The company claims to pay nearly 70 percent of its revenue in royalties, adding that "we believe that this is the fair approach to take." As the digital age has proven, however, royalties are difficult to fully track. It's believed that artists get pennies on the dollar for every song of theirs consumers buy in the iTunes store. A similar scenario is believed to play out through digital streaming. The lion's share of the cash, in other words, goes to record labels. Over time, Spotify plans to share more details on its business with the music community. It's not clear how often the site will be updated, but there are several topics already available on the site, including information on how Spotify works and best practices for participating artists.
Spotify's announcement comes along with the launch of a new site designed specifically for artists and other music professionals to learn more about its operation.
Spotify has launched a new Web site detailing its business model for artists and other music professionals. And along the way, the company announced some interesting details on just how much cash it doles out.
According to Spotify, its new site is designed to provide additional insight into its operation through the use of data and business analysis. As part of that, Spotify said on Monday that it has issued $1 billion in royalties since its inception. At this time last year, its total royalty payout was at $500 million. This year alone, Spotify has coughed up $500 million in royalties.
Related stories
- Spotify gets $250M payday led by Silicon Valley investment firm
- Spotify steps up clip sharing with messaging app Tango
- Spotify to carriers: We don't need to be enemies
- GTA Online hit with launch problems
- Spotify creates 'Follow' Web button for more social tracking
Spotify also tried to make the case that it's exceedingly generous with artists. The company claims to pay nearly 70 percent of its revenue in royalties, adding that "we believe that this is the fair approach to take."
As the digital age has proven, however, royalties are difficult to fully track. It's believed that artists get pennies on the dollar for every song of theirs consumers buy in the iTunes store. A similar scenario is believed to play out through digital streaming. The lion's share of the cash, in other words, goes to record labels.
Over time, Spotify plans to share more details on its business with the music community. It's not clear how often the site will be updated, but there are several topics already available on the site, including information on how Spotify works and best practices for participating artists.
