Spotify pays ~70% of revenue to right holders. You won't believe how much that is.

Spotify pays ~70% of revenue to right holders. You won't believe how much that is.

It's a tumultuous time for the music industry. With the advent of the Internet, illegal downloading became extremely easy.

With the creation of iTunes, the album format has fallen by the wayside for many artists. However, maybe that all is changing a bit.

After all, one of the most popular music streaming applications, Spotify, follows the rules and bends over backwards for the artists.

Spotify, which makes money from advertisers and subscription fees, has direct agreements with record labels, digital distributors, etc.

They pay these organizations royalties on the music and these organizations then pay their artists according to their contractual agreement.

Overall, Spotify pays 70% of it's revenue to rights holders - artists, publishers, etc. Since they started three years ago, Spotify has paid out about $500 million!

(Source)

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