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RaditazPete
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Correction: since June 2012, when they had -6.52% Active Listener change at the beginning of Summer Vacation.
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Actually that is, for the first time since August, zero growth in Listener Hours and negative growth in Active Listeners. For December 2012 Pandora had: Listen Hours: 1.39 billion Active Listeners: 67.1 million So month-month growth rate to January is: (Jan-Dec)/Dec * 100 Listen Hours: (1.39-1.39)/1.39 * 100 = 0 Active Listeners: (65.6-67.1)/67.1 * 100 = -2.24% Year/Year seems more impressive and it is post-holiday boom but quite an absolute drop in active listeners (1.5 million fewer users), indicating they may have a real problem with user retention.
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I guess that depends on your subscription plan with Spotify. For on-demand music services like Spotify, MOG and Rhapsody, I agree that the virtual collection replaces the real collection. For "personal radio" services like Pandora perhaps the user has no collection (or doesn't like maintaining long playlists).
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You're right: I seem to be mixing Artist and Label/Distributor. I don't know whether a label/distributor passes the payment per stream to the owning artist or pays all artists for music streamed. In the case of Indie labels, I believe the former is actually the case: Spotify pays the label per stream, the label takes a cut and pays the artist, possibly in a combined payment for all the artist's tracks streamed. In any case, what I am saying is that pay-per-stream is similar to popularity and the ability of people to discover that artist. I figured Spotify wouldn't post individual artists but it could post labels. What would invalidate my argument is that the most popular labels (and their artists) aren't making much money compared to, say, mp3 sales.
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That is a good point, for a single user but couldn't the model be different? Instead of 1-1 user-purchaser those 75 streams of a track would be spread out over 60-70 people (a few of them would listen more than once). Those people are the radio listener types so they generally wouldn't convert to purchasers, though that is the ideal. (I don't take this for granted; it is just an argument I am posing.)
Toggle Commented Sep 22, 2011 on VOTE: Is Spotify A Good Deal For Artists? at hypebot
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It seems those who control streaming, middlemen like Spotify itself and Sound Exchange, are the winners. From a content-provider perspective where you pay more than the streaming rate per song (to someplace like Sound Exchange), a listener who goes through 40 hours a month at a rate of $0.02 per song and an average song-length of 3 minutes requires a content-provider to pay $16 per month. I don't know exactly what Pandora pays but it is probably somewhere in that range; I haven't heard about artists complaining what they are paid from Pandora (or even whether Pandora has agreements with Indie labels). That may be more than a CD club would pay (12 CDs for the price of 1). I'd have to agree, though: the model doesn't seem to work for artists. In the case of Sound Exchange, the artist has to go to Sound Exchange to "claim their money" like it is some scam lottery site. That may seem like a necessary evil but you would think Sound Exchange, with its statutory imprimatur, would go to the USPTO, find the artists and pay them.
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One thing Spotify could do is post what indie labels it has been paying money to. Artists only get paid when someone streams their music - as far as I know, they don't get up-front payments just for being on Spotify. If an artist's music isn't streamed, that artist doesn't get paid. Spotify could post the top labels streamed and we might see whether those who are complaining aren't getting streamed (much).
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Have you ever received a payout from Sound Exchange? From the last article, Spotify paid EUR 0.0029 per stream to the artist but the "statutory rate" SoundExchange would pay is only EUR 0.0012 -- less than half what Spotify would pay.
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Sep 19, 2011