An exclusive report published here showed that no, despite what it says, Spotify doesn’t pay artists fairly. In fact, in the past couple years, the Swedish streamer has actually reduced payouts for artists. Now, an executive for the company basically told journalists, “No, it’s not our fault.”
During a keynote Q&A at Nashville’s Music Biz Convention, Troy Carter blamed poor artist payouts on a broken “value chain.” Music Week had asked the Global Head Creator Services if the current payout system was fair for artists. Carter, the former manager Lady Gaga and Meghan Trainor, said,
“I would say no, but I would also say the value chain’s broken. And I think what needs to happen is we need to reconfigure the entire value chain.”
Shifting blame away from Spotify, Carter said that the “broken value chain” applies to all streaming services.
So, which artists receive a fair amount? Only those with hit songs, admitted Carter. The old albums model, he explained, had songwriters receive the same amount for hit songs as those who wrote its worst songs. Streaming, however, has changed things.
Pushing his own company forward, Carter said that Spotify stands out from among the crowd. In fact, Spotify has a model that has proven sound and successful for artists. Yet, as the company continues bleeding money, Carter remained noticeably silent on how the company plans to ever become pritable.
Among streaming services, said Carter, Spotify provides artists a unique platform tailored specifically for them. Despite numbers showing the contrary, Carter said,
by TechCrunch (CC by 2.0)