In late May, Spotify's CEO Daniel Ek made headlines when he he tweeted“Today, with the cost of creating content close to zero, people can share an incredible amount of content.”
One person who was offended is deadmau5, who put them up an Instagram post over the weekend offering comments on Ek's comment. “Wrong,” reads the producer's caption. “The cost of creating content has been 25+ years of my life and a lot of that revenue goes to your company, you idiot.
The post garnered almost 38,000 likes and many comments, with one person writing: “We hate Spotify so much,” to which the Canadian electronics producer responded by saying: “Feel like, I'm about to pull my catalog from these kings. vultures, that's enough.”
As of publication, the producer's catalog is still available on Spotify, where he currently boasts nearly 5 million monthly listeners.
“I've said for a long time that we as IP owners, artists, artist managers and major labels have allowed these multi-billion dollar companies to build platforms and companies with our art and our fans, and now 'it's locked,” deadmau5's manager Dean Wilson says Advertising sign in terms of royalty rates to DSPs like Spotify. “We can't talk to our fans on the platform with our art that we've made.
“When you say that out loud, it's crazy that we continue to allow this to happen,” Wilson continues. “It's our fans that we drive to the platforms with our art, and unless we pay [the platforms]…you can't reach your fans. Or you don't even know if you're reaching your fans. It's like, if you spend that amount of money and move that needle on it, you could reach that amount of people.
“So how much data do we get back in return? The least they can give you. Ask me today, “How much do I get paid per stream on Spotify?” I do not know. And that's our job. How crazy is that, that this is our job, and if you broadcast my record for more than 30 seconds today, I can't tell you what it caused. It's in that mythical bucket.”
In April, Spotify reported that first-quarter revenue jumped 20% and gross profit topped 1 billion euros ($1.08 billion), helping the 18-year-old streaming company to profitability and putting it on track to achieve development target for 2024.
Earlier this month, the streamer announced it was raising prices for the second year in a row, with its premium US individual plan increasing by a dollar to $11.99 a month starting July 1. The platform's duo plan will also increase by a dollar to $16.99 a month, while the family plan will increase by $3 to $19.99 a month.
Despite the price increases, royalty rates have recently declined for songwriters on the platform. By adding audiobooks to premium offerings such as individual, duo and family plans, Spotify claims these subscriptions are now “bundles” — a type of plan that qualifies for a reduced rate on US engineering royalties, given that multiple products are offered at one price. According Advertising sign According to estimates, the change means publishers and authors will earn about $150 million less in royalties during Spotify's first combined year.
Since the merger change was first reported, Spotify has been targeted by the National Music Publishers Association (NMPA) on multiple fronts. In May, it was hit with a lawsuit from the Mechanical Licensing Association over the reduced rate. In response, Spotify called the NMPA's charges “baseless” and “misleading” and argued in MLC's lawsuit that “the bundles were a critical element” of the Phono IV deal struck between publishers and streaming services.
from our partners at https://www.billboard.com/music/music-news/deadmau5-threatens-remove-music-spotify-1235718545/