Spotify is going to steal my royalties to give to bigger artists
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You can comment on this video at YouTube
Thursday January 4, 2024
David Mellor
David Mellor is CEO and Course Director of Audio Masterclass. David has designed courses in audio education and training since 1986 and is the publisher and principal writer of Adventures In Audio.
@AudioMasterclass replies to @musicbythesilverheadengineer: The shame is that I and others can't do it. Having a track on Spotify is like buying a lottery ticket. The chances are minuscule, but there's always the possibility of it blowing up and turning into something big. For my $9.99 distribution fee I get exposure on all the major streaming platforms and I thank heavens other than that it's not pay to play. https://en.wikipedia.org/wiki/Pay-to-play
@musicbythesilverheadengineer replies to @musicbythesilverheadengineer: @@AudioMasterclass
I totally agree with your point. However, the ultimate goal isn’t to abandon Spotify permanently but to push the platform toward fair practices and basic respect for indie artists. Once meaningful changes are implemented, we intend to re-release our tracks.
This is fundamentally a matter of respect.
Spotify’s primary vulnerability lies in its dependency on investor confidence. The company’s business model is underpinned by its ability to demonstrate growth and maintain its stock value. If investor concerns are triggered—especially by controversies that gain traction in public forums—it could lead to significant financial consequences.
A strategically coordinated movement, involving at least dozen of thousands of indie artists temporarily removing their music during one quarter (to have significant effects in their quarterly business and financial reports), would be especially impactful if timed before Spotify’s key financial reporting periods.
This could disrupt their ability to present a strong business outlook to investors, amplifying pressure for change. If paired with viral campaigns on platforms like YouTube (catchy story tellling videos or Shorts), highlighting these issues. It would expose Spotify's dependence on its public image to sustain investor trust.
Moreover, Spotify’s competitors like Youtube Music or Apple Music will seize this opportunity to help us amplify the media coverage, aiming to weaken Spotify.
Then the Spotify's investors will do the rest of the job for us.
By focusing on Spotify's investor vulnerability, we can drive meaningful change for indie artists.
For such a movement to succeed, it must be meticulously planned and executed with clarity and unity, avoiding emotional, fragmented reactions. We should be awared that if other platforms follow Spotify's policy that harms indie artitsts, it will be a global standard for this industry, and there will be no hope for a change.
What do you think about it?
@djicebreaker80: Oh, they are , Did you know they have started & changed their policy about 1000 streams before they even start paying you, this too stop spiking in your account and be taken a track down on Spotify,
@juniordunkley2751: Spotify stop mugging old age pensioners
@INDOMINION: Shawn from INDOMINION here. Just wanted to say that as an indie artist you won't find my music on streaming platforms. My music is being made available through CD & Vinyl only. Support your new artists!
@Kellcole32: I thank anybody who make music should sell they music they self that’s what I thank
@musicisall2JK: This might be intereting to Mary nd co. https://www.youtube.com/watch?v=6niGPVR8S2k
I have no connection with this video or the host.
It all seems so tragic and I am not even a musician.
@CaptHiltz: The 3 major record companies, Sony, UMG and Warner don't necessarily compete against each other but rather against true Indie artists who are either unsigned or signed to a smaller independent label. We are a threat to them and they want us to get frustrated enough to leave the platform. They created their own definition of what a working artist is. I play in a part time local band. Notice I said part time. Not hobby but part time. Why do I say this? Because we make money every year. Last year 5% was from recorded music including Spotify streams. That number will now go down and the video host is correct, this is theft. Maybe we should oblige the labels and Spotify and leave. Maybe we should start something as a replacement that will be more equitable, not have big name artists to suck up our royalties and zero influence by the major labels. All things end and some day so will Spotify .
@AudioMasterclass replies to @CaptHiltz: You're probably not wrong.
@DjKeda-ph7le: Thing is, it is the biggest streaming platform, and they can do what they want. Still we will post music on spotify, we will continue to use it, even they rob us the small money!
@lauralippie8406: thank you 🙏.
@johncombo: Everyone should pull their music from Spotify and any other platform that will follow this criminal trend.
@secretarchivesofthevatican: It is theft but the problem is an unsustainable business model. Assuming Spotify's income stays roughly steady, something like 60% gets distributed to rights holders. The problem is that there are 100,000 tracks each day uploaded to streaming services which means that the 60% gets diluted day after day after day. Same money being shared ever more thinly. The current theft plan is a temporary way to not leech all their revenue away. Ultimately it will fail because there will still be 100,000 new tracks a day being added.
@AudioMasterclass replies to @secretarchivesofthevatican: You raise a good point and perhaps, unfortunately, it does justify Spotify's action.
@DrBovdin: I prefer physical media, and this doesn’t make it more likely that I will start paying a streaming service for what I want, especially not Spotify.
@chameleon-dream-band-official: Indie artist's revenue was already unfairly going to the big names because of the royalty model. What is happening now with this royalty model change is (in effect) nothing new, it's just more money being siphoned off the small artists. I just hope this change is enough to put off people (artists and listeners) from using DSPs and heading to BandCamp (or similar) to buy music files and real media. Although judging by the amount of "Spotify Wrapped" I've seen this week, I'm not so sure 🙄
@arjunarora5905: Agreed.
@plaidgadjo: I have three albums on Spotify (soon to be four) which will be 37 songs on the platform. My songs on Spotify generate small royalties that go to my distributor (along with royalties from other streaming platforms) and I'm paid once a threshold of $100 is reached - which happens several times a year. While not a lot of money, it ends up being a decent chunk for repairing or upgrading equipment. Spotify will now be stealing my royalties and giving them to bigger artists. How is this fair? It doesn't seem legal to me to just refuse to pay royalties on intellectual property that you are streaming (no matter how many plays). I'm also curious where the "1000" came from. Why not 5000? Maybe next year...
@AudioMasterclass replies to @plaidgadjo: You're in the same boat as many of us.
@Lethoscorpia: To say It's only a small amount of money so it's not much to lose is so ludicrously wrong. In 2022 I got £50.63 from my 250 odd songs on all streaming services combined. Very few crossed 1000 plays but they all add up and that is just one year. Thanks for posting. I'm worried other services will follow. No I don't want money from other artists, just what is due to my music. I would loved to have been a professional musician, it's not my main income, but it is still theft.
@AudioMasterclass replies to @Lethoscorpia: Agreed. If that were my £50.63 I'd want it.
@imimportantright: I rely on Spotify for the huge range of music I listen to, what would you suggest I replace it with if necessary? I mainly play music through Bluetooth on my phone and I'd like a system that isn't so reliant on a subscription.
@blooddude: I left the music industry just before streaming became the dominant consumption method... I feel for artists now 😢
@johnny5805: This is ABSOLUTELY F**KING OUTRAGEOUS !!
I hope someone takes us the fight, and brings them to court !
@DisectUK: While watching you explain this I could truly see the deep down anger against Spotify. I don't blame you at all. Your last resort might be that you pull your content from them unfortunately. You do the right thing and still get screwed over.
@likwidguns: Spotify is going to implode
@stevenhenry5267: Record labels and associated businesses have been ripping off artists for well over eighty years.
@federicoaschieri: I agree with you!
@j.t.cooper2963: Just another reason to dump Spotify. I have never subscribed to it myself.
@JeffSaysHiFolks: This is disgusting. I just canceled my Spotify subscription and am switching to apple music.
@Alec_Collins78: Who are you on Spotify?
@RebeccaTurner-ny1xx: Take Spotify into public ownership. After all, it apparently is making a financial loss, and when we own it, we can collectively decide how to distribute royalties. At the moment, artists have no say in what Spotify does, despite its enormous power over them. Democracy now!
@chrissimmonds4383: I've now cancelled my Spotify subscription and have specified the reasons you have outlined. I'll suscribe now to Qobuz. Best wishes.
@adotopp1865: Of course now I want to know what music you are putting out. Please let me know. Thanks.
@martellackerman3434: Commenting for the algorithm!
@nonprofet: never subbed to Spotify never will. scammers.
@stuartrathbone1291: I'm very sorry to hear about your problems with spotify. Im a relatively recent follower of yours on YouTube, but I don't know about your own music. The only streamers zi use are Amazon Unlimited, which I believe at least pays a better share to the artists than Spotify, and Bandcamp, where I purchase music files and or media from the artists. I use my Amazon account to listen to stuff I either already own, or legitimately want to investigate before deciding on a purchase. If i like an artist I buy either a cd or record, because I'm in my mid ,40s, no longer broke, and I am happy to pay money for things that bring me pleasure. The shift to streaming has been very poorly managed and a new breed of middle men seem to be running off with any available money, which sucks. Being a nusician was tough enough in the before times, the current system can only produce Taylor Swift clones, who could afford to be a niche musician these days?
@RecordingStudio9: 100% with you on this. I knew this was coming. Last year I removed all of mine and advised my clients to remove their songs from Spotify, which my clients and I did. It has not affected my or my clients' few-dollar income. At least I know Spotify is not stealing my 2 cents.
@ianl.9271: Sorry, I was not using Spotify, and will not be using Spotify. I stream on Apple Music.
@iqnill: Chances are the EU will be onto it soon.
@tomstickland: I don't like Spotify anyway. No hi res streaming options.
@AudioMasterclass replies to @tomstickland: And when it comes it will be a higher-priced service.
@BrainHurricanes: Purely disgusting! Just like our non elected world rulers. Own nothing and be happy, just give everything to those folks, they want to be really really unhappy so we all can be happy! Idiots!
@Quotenwagnerianer: The most infuriating about this is that they just raised their prices.
But instead of evenly distributing all that extra money they take it away from the small artists and give it to those that are already big.
And it's not simply that. Not only artists but entire genres.
I'm a classical music guy and I love that most labels on the market have put their catalogue up on Spotify. But some smaller labels who have gems in their catalogue that no one knows, get litterally no play except by people like me who always want to discover new stuff and not listen to the 10.000th new recording of the Rachmaninov 3 Piano Concerto.
These labels lose what little incenttive they had in the first place.
It's ludicrous!
@Schizzieful: And Theft it is.
@EddieJazzFan: The music industry is so messed up. They made tons of cash on overpriced CDs for years back in the 90s. People stopped buying CDs and their profits dropped and they are sill upset that the gravy train was over. They seem to be willing to do anything get their profit share back & they couldn't care less about what it does to music culture.
@remotevision4068: Well presented. You're not wrong.
@jjakes5589: I have never used Spotify, and hearing this i never will. Corporate scum by the sounds of it. Avoid like the plague.
@joelcarson4602: The Day, the Music died.
@synthoelectro: The record labels found a way to get artists to join them, without paying them.
@simseven4967: Phisical media over spittify and most of new music sux big time, if you are fun of music and musicians buy their music, it is so simple and if money is an issue than eat less shitty food from fast food 🤟🏻
@christopherchadwick480: Shocking. Liked and shared.
@simonclark8290: I stopped using Spotify when the price went up recently and I also found out they planned to give $20 million to people like Harry and Megan for a few podcasts. Give me a break. People have always got rich by screwing the little people but it seems to be getting worse.... or more visible. I don't know which.
@michaelpdawson: Hope Taylor Swift enjoys my 13 cents a year.
@maidsandmuses: One solution would be to switch back from streaming music to downloading music, which of course would ruin the whole streaming service business model.
The economics & costs of the required server infrastructures are quite different for downloading vs. streaming, and should make downloading music as a one-off purchase a much more equitable proposition as far as smaller artists are concerned. In Japan there are (at least) hundreds of very 'small' indie bands and bedroom-artists, but there are effective combined service providers dedicated to the promotion of those smaller bands, providing music news, interviews and download ( not streaming ) services for the songs of small indie bands. That model seems to work well there.
@rabit818: Spotify does not play obscure artists on my playlist.
Lawsuit!
@fireinsurance: Another reason to not use Spotify. I proudly do not.
@labalo5: The artists can still CHOOSE to be on Spotify for exposure. Artists can use the platform…you play on their ground, it’s their rules. I pay for Spotify…it’s useful and find its convenience to music libraries worth it to me.
@AudioMasterclass replies to @labalo5: I don't disagree but Spotify is massively the leader in music streaming with more than twice the market share of Apple (https://www.statista.com/statistics/653926/music-streaming-service-subscriber-share/). With great power should come great responsibility.
@MikeSwirled: This is messed up 😑
@Gguitarist1: When you're right, you're right!!!
The new industry model is
"Small Artist's economic genocide."
Smaller artists are not worthy to exhist.
😵💫
@techcafe0: I cancelled my Spotify subscription last month out of frustration (again) and signed up with Tidal instead. Spotify still doesn't offer lossless streaming, so that was final straw for me.
@techcafe0 replies to @techcafe0: to be honest, I detest the idea of 'paying rent' every month to Spotify, or any other streaming service, just so I can listen to some music, and usually it's the same stuff over & over.
@REMY.C.: This reminds me a lot of the stupid French law that makes me pay a tax on every single storage drive or phone or tablet I buy to supposedly pay artists. On those drives I save my photos, my videos, my writings, my designs. Mine. Yet I pay taxes that go to other artists and I get nothing. That's purely theft.
@officialWWM: Clearly, Spotify doesn’t want all this material on their servers. They are trying to force small artists off the platform. There’s no money in it for Spotify to host smaller artists. Apple is doing the thing by only accepting material that is mixed in Atmos. That immediately eliminates 99 percent of home producers who simply won’t have the money or inclination to build a specialised 11 speaker studio! You tube has also been doing this for years. If you don’t have 1000 subscribers and 4000 watch hours, you don’t get paid! YT continues to sell advertising on those smaller creators videos however. Yet, people still continue to create and upload to YT, even though they know they won’t get paid. How is this any different?
@guyjohnson16-44.1: I heard it on the BBC World Service, and it annoyed me enough to keep me awake longer than normal. Spitify, Stingeify, Crappify ....
@enriquekahn9405: Another reason not to use Spotify
@radusansebes3517: As expected
@radusansebes3517: At last the true face is revealed
@DaskaiserreichNet78: they where already trying to questionable tactics in November 2020, when Spotify introduced an experimental feature called "Artist Promotion" that allowed artists and labels to identify music they wanted to prioritize, and Spotify's algorithm would consider this preference when determining personalized listening sessions. However to opt in the artist or label had to except less pay. The reason I dislike this is that in order to keep up every small artist would have had to opt in and when everyone opts in nothing changes. when some artists opt in they will get more plays but those that don't opt in will get less plays because people aren't going to spend additional time listening to music in order to compensate. If everyone opts in nothing changes. It is the same if every sprinters speed was doubled nothing would change about who wins the race.
Whatever the case would have bean Artists loose and Spotify wins. luckily in December 2020, Spotify ceased this strategy due to negative feedback.
If Spotify can find a strategy that does not backfire they will take it and run with it.
@joeking9760: It happens everywhere. Latest attempt was done by unity with the unity runtime fee. They tried to change their policy to now charge the game developers for every installation a user makes. Those greedy fu**ers always try to tighten the noose and they dont really give a sh#! about art 🙂
@Crime_Mime: this popped up on my homepage out of the blue, so hopefully the algorithm picks this up.
@johnbravo7542: All the money going to pay for Joe Rogan pod cast.😉
All music I have are on CD's and Vinyl,never listened to people saying to me why don't you just stream it,no thank's I like getting out of my chair to flip the record,or stick in a new CD.
@jamesp3022: Group action needs to be taken against them. But that's all rich people do, is think about theft, or are in the process of thieving
@Vapourwear: “We’ve decided we pay you so poorly that it’s now not worth it to us for you to do anything but work for free.”
@doyouluvit: F Spotify and F streaming.....it's too bad people won't support physical media. Lazy quick fix society we live in. Shame
@homesweetplanet: The article you linked doesn't say what you are implying. If your tracks exceed 1000 streams in 12 months, you will get paid, and more than you are currently paid. Seems like a low bar to clear, for someone already getting paid. Manufactured outrage.
@AudioMasterclass replies to @homesweetplanet: It's my outrage and I get to decide whether it's manufactured or not.
@michaelmitchell8218: That’s disgusting, nothing but stealing and people need to stop using this service now and make a stand.
@johnwatrous3058: Time to dump Spotify.
@anthonyclarke5579: Why would "BIG" artists wish to allow this practice?
Are they so mealy mouthed?
Stealing money in this way will surely impact their popularity when exposed as pick pockets.
I think I will cancel Spotify if this practice continues.
@Douglas_Blake_579: Bye Bye Spotify!
@rikardekvall3433: As I understand from the movie about Spotify, the record companies/distributors squeezed Spotify for a great deal, otherwise wouldn’t they get the big artist. They are the middle hand that takes your money. Now Spotify’s accounting cost must be high so they take all the earned money from small artists. Shareholders want a good profit so the little artist will pay the price. Just like Big Farma and Big Oil
@fakshen1973: So as an advertiser... if my campaign is really, really small is it not worth it to Spotify to collect the fee from me? I mean the amount is so trivial, why even bother charging me?
@AudioMasterclass replies to @fakshen1973: Good point.
@ScottGrammer: And you thought Napster was bad.
@Af1st1: Stinks
@rotaks1: I agree with you. Please get a lawyer to help.
@teashea1: agreed..... I only get about 6000 streams a month.
@AudioMasterclass replies to @teashea1: 1000 streams per track in the past year is the threshold, so unless your streams are spread out over a lot of songs you should get paid.
@teashea1 replies to @teashea1: @@AudioMasterclass I have six albums, each with about 12 songs. BTW I use CDBaby for distribution
@johnnyrenfield: its time to go to our unions
@straymusictracksfromdavoro6510: WTF!? - outrageous. Can this be legally challenged or even if all of the small artists banded together they would still not have enough money to go to war with the big bad greedy streamer, I'd have to say it's slightly unfair commercial practice. Even suggesting that this is, at the very least, the height of high-handed arrogance and dishonesty is an understatement of Olympian proportions. Apart from STEALING from small artists, the eventual outcome of a move like this is that Spotify will end up with only having the big-name major artists on their platform when the non-mainstream small artists withdraw their music, which means a world of easily available music of only the likes of Taylor Swift, Ed Sheeran etc, God - won't that be some sort of "special" hell!
@franks3593: I agree, this is theft. Why are they doing this, because they can knowing the people they are stealing from have few to no options to do anything about it. I subscribe to Tidal, this is an honest question, are they better in how they deal with the smaller artists?
@grumpy9478: the squeeze is on! Spot'o'Sht CFO & CEO trumped the A&R / Marketing Dept 'cause Big Artists Mgmt (& the Board, & their investment banker) are telling 'em they gots ta have more $$$... & they don't care where they get it. hyper-capitalism at its finest. so... who's the least powerful source of dough in this biz? unknown, niche music musicians.
& btw, prepare for more uninspiring pablum from corporate.
@phillipmorris9847: I never liked the idea of Spotify and never use it
@poulpedersen359: sorry to hear that. maybe going vinyl is a better way ?
@foxtrotzulualpha: Big Government & Big Corporations won't be satisfied until "We The People" own nothing
@DeltaJazzUK: Outrageous.
@chrissinclair3136: I have moved to Tidal and Qobuz.. I hope they look after artists better
@jake_peralta_BR replies to @chrissinclair3136: I've been a Deezer's user about 6 years and I'm happy with the quality and the catalogue.
@michaelschuberth7802: Streaming Services are the WORST thing to happen to musicians & artists in living memory.
@xruraldustx replies to @michaelschuberth7802: What about the peer to peer sharing trend in the early to mid 2000s?
@DaskaiserreichNet78 replies to @michaelschuberth7802: Things could have become much better when when big record labels lost their power. But now streaming services have taken over and they aren't the slightest bit better.
@techcafe0 replies to @michaelschuberth7802: @@DaskaiserreichNet78 rentier capitalism is parasitism
@LordPapula: Such a straightforward and awesome video.
@mattspokane: I hope you guys can get a good attorney to get a class action lawsuit for you. Unfortunately, the argument from Spotify can just be "take it or leave it."
You can always pull your recordings off of their platform, right? I hope all of the small artists do and maybe you all join a non-for-profit co-op streaming service.
@michaelschuberth7802 replies to @mattspokane: then LEAVE it !!!
@SlowMenThinking: Grrr Grrr Yes I actually do see some money from Spotify. Thanks re checked the email. Tricky berried in the pep email the one you don't normally pay attention to cause it is all dross. Read all in the link and Ouch! I know many who this will hurt! and the argument is it was small change any way! it will be interesting to those who have to pay tax in advance for the year based of last years earnings, the refund? worst part of it all most of my audience uses the "Green S" those who use YouTube I know they do from there own reporting, and yet not a red cent has come in! It is even harder to find out what YouTube stats for the music part is.... least my membership to APRA AMCOS as a song writer means I am getting the part of the royalty Spotify does not pay out to the artiest it will be interesting to see what happens. ):
@jonasnitz7678: Spotifuck!
@mynthecooldude: Why are they doing this?
This's bad optically for them.
@michaelschuberth7802 replies to @mynthecooldude: $$$$$$$$$$$$$$ that's why
@katana_47: Spotify is evil and greedy.
Why any artists want to put their music up on their platform is beyond me. I boycotted Spotify several years ago. I won't ever go back.
@michaelschuberth7802 replies to @katana_47: Hear Hear !!!
@TheEeliciousOne: I didn't know you released music. Can you provide a link so that we can hear it?
@AudioMasterclass replies to @TheEeliciousOne: It's on Spotify!
@viviennebehr: OK time to move family subscription to another platform... €18 less for Spotify to send to Taylor and Ed. Not that they'll notice.
Vote for the little guys leave Spotify
@michaelschuberth7802 replies to @viviennebehr: then buy the physical product, CD, Record, Cassette etc. then you own it.
@MarcelHuguenin: Despicable outrageous theft it is indeed. Why is it that the bigger these companies get the greedier they get? It's simply appalling.
@credenza1: It is bound to backfire.
@tobiaxelsson: I really don't get that line of thought by Spotify, it's the small artists are the ones that really need the money to continue produce music while for bigger artists it just increases the profit (increased profits for Spotify as well by discouraging smaller artists -> less server resources needed). If anything they should pay the smaller producers more imho (since there are where the future profits usually come from).
@AudioMasterclass replies to @tobiaxelsson: Yes, currently-successful producers get paid. Those who might be successful in the future don't. This can't be good for music.
@johnbravo7542 replies to @tobiaxelsson: Business don't work like that,I get your point though.
@tobiaxelsson replies to @tobiaxelsson: @@johnbravo7542 You mean short term profit focus doesn't work that way, but long term does. It's the same with R&D in tech, especially the R part. You sacrifice short term profits for longterm improvements.