On Spotify’s blog, it states that from the company’s total revenue, 70% of their profits go towards paying royalty fees to artists. If you’d like to see their blog, click here. How the hell were they able to survive for so long as a business paying 70% of their profits to the artists? Please don’t take what I’ve written the wrong way; I’m not saying that artist don’t deserve to get paid. Anybody who has been reading my blog long enough, knows I support legal streaming services, and fair pay for all artists. However, the way Spotify is doing things, I”m not sure how long they can survive much longer. No wonder their software sucks ass! There is no real money available to make the necessary upgrades to improve on their service. You know, if I was a Spotify customer I think I would have left, because that doesn’t make me feel good to know that I am helping to pay for the 45M cheap ass free account leechers (oops, I mean the “frugal” users of Spotify LOL). For all you leeches, you need to understand that if it were not for the paid customers, Spotify would become more Pandora like; there’s absolutely no way that Spotify would be able to afford the licenses they currently have on ads alone. So in reality, your mooching is a privilege, not a right. So don’t say “Spotify is the best,” when in reality you only like it because you don’t have to pay; ’cause I’ve seen quite a few services better than Spotify.
That said, this is not good business practice in my opinoin, and it doesn’t give anyone incentive to become paying subscribers. Which also would mean, if I was a subscriber, everything that is broken in the software would stay broken indefinitely. I really do think that there should be a massive campaign effort to explain to the general public, what music streaming truly is, and the value of paying for a good service. Streaming is so much better; not just because it is legal, it’s so much better than using downloading links with infected malware; or downloading a torrent where the person didn’t know how to rip a CD properly; or you download one thing and get something completely different; or the quality is so low because people are still using dial-up; or your hoping and praying for decades that someone, somewhere on this planet will share that 1960’s album you wanted; and if you did find that torrent, you’d discover that it was recorded from vinyl with several hard scratches on each song.
Not only is streaming convenient, not only are most services easy to search and download, most services also help you discover new music you’ve never heard before, or music that you’ve forgotten about. All of that for $10 bucks a month, instead of $30-$50 on CD’s. Even at 99 cents a download still adds up to a lot of money after a while. To be honest, Spotify’s business model really confuses me. I read their goal is to offer free music; well I’m thinking if that’s the case, why do you need subscribers? I don’t like the idea of picking up anybody else tab (thank you very much). According to Spotify, things are doing well, and the company has hired new employees, blah, blah blah. I just don’t see it yet. Maybe I’m wrong. I think they way Spotify is doing things gives the impression that the artists are busting their ass for free, because they just love their fans? Oh, please! One thing is for sure, I don’t think iTunes is finished f**king with Spotify. Apple is going to find some way to make Spotify limit their free services. I could be wrong, but let’s see. This would be interesting to see where music will be in the next 10 years.