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> If they can make the average song listened to by a user just 1 second longer, they reduce that by about 0.5%.

This isn't how music royalties work - rather, Spotify (and most other on demand streaming services) pay out a % of their net revenue to rights holders. This % does not change based on how many streams there are in total, but it IS distributed proportionally based on the number of streams, so it's more profitable for a music rightsholder to have more streams (the topic of the article).

Some high level information: https://support.spotify.com/us/artists/article/royalties/




Can you define “net revenue”? Do you mean gross revenue, because Spotify does not earn profit (aka net income)?


They must be evil communists/socialists.


Is a stream defined as wonderful listen through the song or like maybe halfway through?


Seems like they should measure proportions using seconds streamed vs units streamed?


They both seem primitive. If a user paid $10/month for a subscription, each month they should divvy that $10 to the proportional minutes listened of each artist for that month. That’s paying out to the people that are keeping that person subscribed. Minus Spotify’s cut of course


I'm sure that's where most people think their subscription money goes but the industry made sure it's not.


That’s kind of how SoundCloud does it (they call it user-centric payment model), it has the added benefit of curtailing fraud.


White noise and other background sounds cause issues here.



So Universal Music Group is depending on its competitor, Warner Music Group (owned by Access Industries which also owns Deezer)?

Interesting. I thought Universal/Warner/Sony were propping up Spotify as leverage for when they need to negotiate with Apple/Google/Amazon.


Those are already an issue that Spotify has.

https://www.engadget.com/spotify-almost-removed-white-noise-....


How so, maybe that just means those white noise tracks bring the most value.


Right? As a user, if I listen to 2 hours of content split equally between sources A and B, it seems fair that they each get half of my subscription fee (less Spotify's cut). Regardless of if A views B's content as "less worthy". On the other hand I wouldn't sign up for a monthly white noise service and if A went on strike and didn't renew license agreements, that's what Spotify would become. Record labels do have leverage over white noise which is a commodity (right? y'all aren't beholden to certain streams are you??)


I actually do have certain episodes/streams saved that are my go-tos.

Navigating "rain sounds" has become a lot more difficult lately specifically due to record labels complaining, particularly if you want one continuous 8hr stream. Instead all I can find now are playlists with a bunch of things I don't want. If I didn't have my favorites already saved I wouldn't be able to find them at all now.




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