June 30, 2010:STIM hails eightfold increase in Spotify payments

Here’s some more datapoints to add to the debate around Spotify’s business model: Swedish collecting society STIM says payments from the streaming service to songwriters in Sweden have increased “eightfold” in the last year – rising from SEK 500,000 to SEK 4 million (i.e. from $64k to $515k). Sweden is one of the most significant markets for Spotify, not least because it’s been cited alongside the IPRED anti-piracy law as the reason why recorded music revenues rose there last year. Meanwhile, STIM payments were also the tangled source of the ‘Lady Gaga earns tuppence from Spotify’ story that keeps rearing its head in the mainstream media. The 800% increase for Swedish songwriters doesn’t address the complaints of some Swedish artists about their payouts, but it does show the scale of Spotify’s growth in usage (and also the challenge it faces in scaling its revenues to match). Source: Music Week



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