Spotify has revealed its latest payout figures in a response to criticism earlier this week from metal label Century Media. “Spotify is now generating serious revenues for rights holders; since our launch just three years ago, we have paid over $100 million to labels and publishers, who, in turn, pass this on to the artists, composers and authors they represent,” says the company in a statement, before pointing to IFPI figures showing Spotify is the second single largest source of digital revenue for labels in Europe, and also to figures showing digital growth in European countries with Spotify outstripping growth in those without it. However, a second label has joined the fray, backing Century’s stance and saying that streaming services like Spotify “have the promise to squeeze smaller labels out of the picture”. Brian Brandt of classical/jazz label Mode Records compares figures from physical sales ($3-$4 profit per unit) with Spotify streams (11,335 streams in June for Mode artists for a payout of $36.98). “While the major labels and pop music may be able to reap a real income stream from Spotify simply due to the sheer volume of streams, the Spotify model is not financially sustainable for any indie niche label,” he claims. Source: Billboard Source: New Music Box
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