The official word will be coming in the next few days, but the new Spotify interface for artists and songwriters will include a feature where you can essentially set your own royalty rate per stream.
Think of it like a version of Radiohead’s pay what you want from years ago.
There’s been an incredible amount of back and forth legislation on streaming royalties but it’s looking like Spotify has come to a point where they’re going to go all in on artists and writers. To trust them to set their own rate (up to 10 cents per stream)…As Spotify is a vital service for artists and writers, Spotify trusts that artists and writers will choose a royalty rate that will allow Spotify to still have enough cash flow and long term revenue to keep everything going.
Artists and writers will take care of Spotify by selecting a royalty rate they believe will benefit everyone.
It’s a lot of power, but it’s more like handing a tiny bit of to a lot of people. Spotify is diversifying their risk, knowing that each artist will come to a slightly different conclusion on what their royalty rate should be and that ultimately everything will balance out across the entire platform.
Here’s to hoping.
***If you don’t see the new interface in the next few days, send an email to april@fools.day and they should be able to tell you everything you need to know.
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I’m always interested in your perspective, whether affirming or dissenting. Continue the conversation anytime: gabe@gabethebassplayer.com