According to The Guardian, an artist is paid $0.001128 per song stream after the label gets it’s share. A million streams of a song will pay $1,128. How many songs will get played a million times? Is this a sustainable business model for artists?
Spotify could be seen as a vehicle for promotion. If a trending song lead to higher CD/LP sales, I could see the angle. There will also be many who feel any media beyond streaming is antiquated. There will be others who simply refuse to pay for physical media as well as streaming. These are obvious points.
What’s the answer? Should Spotify pay artists more? We will find out how profitable the company is once it goes public and must disclose their sales revenue numbers. I believe at that time it will be easier to reassess the streaming business model. There should be a fair ratio of profits to artist payout. What do you think? Do you use Spotify or other music streaming services? Do you buy physical media and support your favorite artists?
Yet another industry-shaking paradigm shift is underway: a theater subscription service that lets users see as many theater movies as they wish for only $9.95. How does this work? The user pays MoviePass $9.95 a month and for each movie they attend, the company reimburses the theater. Unless there is some genius way to make the accounting of this work, MoviePass is doomed to fail. Each movie costs an average of $8.65. If a user sees more than one movie, MoviePass is losing money. Is this just an future IPO scam where investors pump cash in and the founder walks away rich? Do they plan on raising subscription costs? What do you think?