Can You Really Pocket $1,200 Monthly On Spotify With Your 30-Second Track On Endless Loop? 'Not Quite,' Says CEO
Portfolio Pulse from Sudhanshu Singh
Julian Klymochko, CEO of Accelerate, cited a JPMorgan report suggesting that artists could manipulate Spotify's royalty system to earn significant monthly revenue through repeat plays of short tracks. However, Spotify's CEO debunked this claim, stating that the royalty system is not as straightforward as it seems. Spotify pays recording and publishing royalties for each play, regardless of whether the listener has a free or paid account. The platform pools subscriber fees and distributes the money based on each musician’s share of listening. However, up to 10% of music streams are reportedly considered “fake,” originating from streaming farms.
September 11, 2023 | 1:47 pm
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Spotify's CEO debunked a claim that artists could manipulate the royalty system for significant monthly revenue. The platform pays recording and publishing royalties for each play.
The news is directly related to Spotify and its royalty system. However, it does not seem to have a direct impact on the company's stock price in the short term as it is more of a clarification of how the system works rather than a change in the system or a significant event.
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IMPORTANCE 70
RELEVANCE 100