Spotify launched Laud & Clear to shed light on artists’ revenue and streaming figures

For its global podcast and music offerings, downloadable streaming platform (DSP) Spotify has acquired its status as a streaming jugaad. But it naturally invites the question surrounding the earnings of the artists.

On March 18, Spotify Inc launched a website called Loud and Clear, which aims to provide transparency and data about the streaming economy. The announcement marks the height of worldwide protests held outside Spotify offices on March 15, a step towards greater transparency and user-centric payment models within the streaming service.

The protest came from The United Musicians and Allied Workers Union (UMAW), which launched a new campaign called ‘Justice at Spotify’ last October, demanding, among other goals, that the platform be US $ .0038. Increase your average streaming royalty from. One penny per stream for all artists.

In theory, the site should clear doubts about Spotify’s generosity for paying artists. They also have a lot to offer for the lack of transparency about how many artists should expect to make per cast.

So what is a loud and clear proposal? The site includes a number of resources for artists and industry professionals who claim to be royalty systems, players and process breakers. While recording and publishing for each of the last four years on Spotify – you can have a look at revenue revenue, reflecting how many artists worldwide generated.

Daniel Elk, Spotify’s founder and CEO, says on the Loud & Clear website, “In 2020 alone, Spotify paid more than US $ 5 billion and for the revenue of the global recorded music industry, more than any other streaming service More than.” One says he particularly understands the urgency of the debate around artists’ rights, saying “streaming thread nad is key to helping find a global audience.”

Complex and controversial system

For years, Spotify has been a sad spot for artists for its pro-rata base royalty system – and these payment rates have changed over time. The platform states that it makes money for music from two sources: Spot Premium subscribers and advertisers on Spotify’s free tier. “Two-thirds of this money is paid to music rights holders,” says Loud and Clear.

One adds, “By streaming on Spotify alone, we are seeing growth from artists at all stages of their careers: since 2017, 80% of artists generating over US $ 50,000 per year, US $ 1 , 00,000 per year. 85% and US $ 1,000,000 per year is 90%. ”

There is also an interactive tool that references monthly listeners and monthly stream numbers by the end of 2020. One can see some artist profiles on Spotify detailing who they are, how streaming has changed things for them, and what some attribute to the projections may look like in the future. (There is also a video that describes how money flows from Spotify listeners to the cast.)

The royalty system is a complex and controversial one, especially because artists are paid monthly. The company reportedly calculates the total number of streams for each song by an artist, and goes on to determine who owns each song and who distributes it. Why? Because first, the rights are paid to the holders, and then paid to the distributor. Sometimes, these two are one and the same. Finally, the artist is paid.

Finally, there is also insight from the report series of The Music Managers Forum titled ‘The Dissecting the Digital Dollar’. This third-party resource helps artists and managers navigate streaming businesses and the shift to digital has had an impact on the wider music industry. How to map royalty chains, check databases to avoid data clashes, audit complete data and royalty chains, and compare income from different royalty chains to identify disparities.

There is no word on whether Loud & Clear will hear the artists’ woes about the current royalty system, and whether the user-centric payment model is a possibility for a multi-million dollar DSP.