For Record Labels, Spotify Revenues Are "Microscopic," "Laughable," And "Pathetic"

Sean Parker

Spotify, the European music streaming startup backed by Napster cofounder Sean Parker, is very popular with consumers over there, and consumers are clamoring for it over here.

Some labels, however, are not.

According to two labels exec quoted in music blog Metronome, Spotify is a lousy source of income for the labels, especially compared to iTunes and Amazon.


Exec 1: “Our income from iTunes, Beatport, emusic, Amazon etc is pretty good.
The income from Spotify is MICROSCOPIC – LAUGHABLE – PATHETIC.
The fact that haven’t been sufficiently called out on this is a SCANDAL.
Spotify are old school monopoly capitalists masquerading as painfully hip young “edgy” entrepreneurs. Their game plan is to devalue music 10 – 20 fold and then swallow it up like Pacman.”

Exec 2: “I’d like to add: that as someone who deals regularly with royalty reporting from Spotify and several other digital partners that Spotify goes to GREAT lengths to simplify and make this process as transparent as possible to their right-holders.  The business model can be, as Mr. Ek points out, “slightly complex” and they have seemingly no interest in adding complexity.
They are a great partner and a real asset to the entire space.”

Exec 3: “Far as I can tell, this is another scheme for for technology entrepreneurs to stuff their 401K’s and well paid salary for many years until the business falls apart. Then, based on their ability to raise money in the past, they will start up another company, raise millions and waste our time again. Cookie Marenco Blue Coast Records”

Spotify has reached us with a comment.

“You give the impression that all record labels feel this way – which is absolutely not the case.”

“We’re working hard to grow a business that fairly compensates everybody involved and hear from major labels, independent labels and publishers who licence music to us that we are already a major digital partner in terms of revenue.”

Click here for the full Metronome story >>

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