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What Spotify Mean When They Claim They Are Paying On A Cost Per Stream Basis

Spotify Explained

We all thought that Spotify were paying something like six cents per 1000 streams and maybe it works out that much but it isn’t that simple. The reason is that Spotify’s Revenue and not the amount of streams is the starting place. So, if they sell more advertising and more people make the change from free streaming to monthly subscription the base Spotify’s Revenue increases and the cost per stream increases accordingly.

So it is hard to blame Spotify for the numbers because if they are basing it on changeable parts than surely time will help in the fluctuations and if nobody is responsible for the streams accept the listener how is the band blaming Spotify?

See below for explanations of each item.

The problem with Spotify isn’t Spotify as such, it is the way it cannibalizes mp3 sales, there is simply no good reason to pay $14.00 an album when you can stream an unlimited amount of albums for $10.00 a month, and get them on your phone, on any pc you are on. And not use up all your memory doing it.

Obviously, what Spotify are doing here is changing the artist’s ire away from them and towards the record labels EXACTLY WHAT I’VE BEEN WRITING ALL YEAR.  The truth is it isn’t Spotify’s fault that recorded music is so easy to stream. It is like blaming Steve Jobs for the death of White Out.

Whatever these numbers prove, they absolutely prove one thing: the money is being distributed

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