Interesting reframing of how much Spotify pay musicians

πŸ’Ž Interesting reframing of how much Spotify pay musicians

If we take the UK’s most listened-to radio show- BBC Radio 2’s Breakfast Show – then the songwriter can expect the Performing Right Society for Music expect Phonographic Performance Limited (PPL) to collect roughly Β£60. Stare at a royalty statement which lists Β£150 for a spin alongside Β£0.005 for a stream and you can understand the fear of letting go of the old wine.

But the economics don’t support that fear. A ‘spin’ on BBC Radio 2’s Breakfast Show will reach 8 million people; you need therefore to divide the Β£150 by the 8 million pairs of ears to get a comparative unit value per listener, and this results in Β£0.00002 – which is less than half a percent of the Β£ 0.005 that you would get from one unique person on a streaming service. What’s more, this is not an either/or comparison as those who listen to it on the radio may be more inclined to stream it on Spotify. To bring this calculation full circle, had those 8 million listeners streamed the song on Spotify (which is not beyond the realms of possibility), a cheque of Β£40,000 would be paid across to the artist and songwriter – not Β£150.Β  ‘Not too shabby’ as some Americans like to say.

Excerpt from: Tarzan Economics: Eight Principles for Pivoting through Disruption by Will Page

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