Spotify is the new ‘it’ music service, the Sean Parker-backed enterprise that’s shaking up an already shaken industry. In September, Indie band Uniform Motion made news by blogging a breakdown of how much money they make from various services, Spotify included. See below:
With Spotify, we’ll get 0.003 EUR/play.
If you listen to the album all the way through, we’ll get 0.029 EUR.
If you listen to the album 10 times on Spotify, we’ll get 0.29 EUR
If you listen to it a hundred times, we’ll get 2.94 EUR
If you listen to the album 1,000 times (once a day for 3 years!) we’ll get 29.47 EUR!
If you use the free version of Spotify, it won’t cost you anything. Spotify will make money from ads. If you use any of the paid versions, we have no idea how they carve up the money. They only disclose this information to the Major record labels…
And so the debate began: is Spotify a music discovery site, a revenue-producing platform, a combination of both, or is it another outlet for music fanatics to hear free music? Indie labels Prosthetic, Century Media, and Metal Blade have made news by pulling their artists from the site, one indication of the latter.
As controversy builds, is Sean Parker the name you want on your side? Is he the one to convince the industry that Spotify is, in fact, good for the industry, or is this a venue more similar to Napster than to iTunes?
No matter how this ends, it’s shaping up to be an interesting ride.