The Spotify Artists website attempts to answer the criticism the streaming service has received this year by providing detailed financial information on how it calculates royalties.
According to Spotify, it pays out nearly 70 percent of all the money it earns to rights holders while it has revealed an average ‘per stream’ payout between $0.006 and $0.0084. This money goes to labels, publishers and distributors as well as the artists.
‘We believe that this is the fair approach to take and that as we grow we will become an increasingly significant contributor to artists’ financial lives,’ says Spotify’s new website.
Further figures showed that Spotify distributed more than $1bn (£610,314,000) in royalties to-date, half of which was paid out during 2013.
As of March 2013, Spotify had more than 24m global users with 18m using the free tier.
Thom Yorke and Nigel Godrich from Atoms for Peace were the first to kick off the Spotify debate earlier this year. The pair removed much of their back catalogues from the service claiming that Spotify was ‘bad for music’.
Visit www.spotifyartists.com for more information.