Streaming music service Spotify has been taking more flak for its artist and label payouts this month, with artist Uniform Motion receiving widespread coverage for its breakdown of payments from different digital music services. Meanwhile, three metal labels – Century Media, Metal Blade and Prosthetic Records – have pulled their catalogues from Spotify citing low payouts and cannibalisation fears. Now the company is making its case again, releasing a statement reminding the industry that “Spotify does not sell streams, but access to music… In other words, Spotify is not a unit based business and it does not make sense to look at revenues from Spotify from a per stream or other music unit-based point of view. Instead, one must look at the overall revenues that Spotify is generating, and how these revenues grow over time.” The company reiterates that it has paid more than $100 million to rightsholders since its launch, and trumpets its position as the second largest source of digital revenue for labels in Europe. “Spotify is now monetising an audience the large majority of whom were downloading illegally (and therefore not making a penny for the industry) before Spotify was available.” Source: Digital Music News
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