Many artists have spoken out about Spotify’s payout structure not being as positive for them compared to Spotify users. Low payments are a major concern, with allegations that Spotify doesn’t pay smaller artists at all. The maximum amount an artist can possibly earn per stream on Spotify has been reported to be as low as $0.003, but it’s difficult to confirm this exact figure.
Trent Reznor, frontman of Nine Inch Nails, has been critical of Spotify’s payout structure, specifically the paltry payments the music streaming service distributes to music rightsholders. In an interview with GQ magazine, Reznor said:
“I think the terrible payout of streaming services has mortally wounded a whole tier of artists that make being an artist unsustainable. And it’s great if you’re Drake, and it’s not great if you’re Grizzly Bear. And the reality is: Take a look around. We’ve had enough time for the whole ‘All the boats rise’ argument to see they don’t all rise. Those boats rise. These boats don’t. They can’t make money in any means. And I think that’s bad for art.”
“I thought maybe at Apple there could be influence to pay in a more fair or significant way, because a lot of these services are just a rounding error compared to what comes in elsewhere, unlike Spotify where their whole business is that. But that’s tied to a lot of other political things and label issues, and everyone’s trying to hold onto their little piece of the pie and it is what it is. I also realize, I think that people just want to turn the faucet on and have music come in. They’re not really concerned about all the romantic shit I thought mattered.”
After hearing this, what are your thoughts? Do you think artists are in the right here or not? What’s a good way to go forward in the future? I feel like the whole world should be more fair, especially when some big corporations like Spotify make millions of dollars each year, while artists are reportedly making as low as $0.003 per stream. Shouldn’t something change to make things more fair for the artists?
