The US launch of Spotify has certainly garnered a lot of attention and has once again stirred the pot on the issue of streaming music, artist royalty payments, the major labels and the state of the music industry. Many pundits and artists are crying foul over the fact that artists get bupkis through Spotify’s free streaming service but Spotify is not alone. Here’s a small sampling of my royalties from different streaming sites:
Last.fm, 22 streams, $0.010010
Spotify, 1 stream, $0.006728
Rhapsody, 3 streams, $0.027300
MySpace, 1 stream, $0.001980
As you can see, I’m getting filthy rich off of music streaming. I made an entire penny off of 22 plays of Watch Your Step on Last.fm. Woo hoo! At this rate, I’ll make $10k after 22 million downloads which of course, I’ll make happen by next month, right?
I jest but the point I’m making is that as an artist, I’ve chosen to opt-in to this scheme by saying ok to digital download and digital stream services through my aggregator, CD Baby. I am not a victim – I gave my permission to CD Baby to allow my music on these sites and if you are an artist and sign a deal with a record label or distributor, chances are you are allowing it as well unless you didn’t pay attention to the deal you signed. That’s still a you problem and not a Spotify problem. Does it suck, yes, but it’s the system as we know it. You either play the game or you don’t and some artists choose not to participate. Coming from my view, I see the stream delivery as pure marketing. People who otherwise would not have known about my music can now listen and if they really like it, chances are they will purchase my music. Now when someone does actually want to pay the artist for music, I still would like more choices over iTunes, Amazon and other download sites (eMusic, etc.) and I would like a larger chunk of that revenue but that’s a different blog entry.
Will I opt-in to digital streaming for my next release? Probably not right away — I’d like to make as much money as possible off of the new release — but eventually, sure. And in the meantime, I’ve installed Spotify and am using it to discover new artists that I previously would not have known about.