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Wain Beeslay's avatar

i did some calculations and i dont get Spotify paying 70%

May 2024 suggested average Spotify user streams 25 hours of music.

A $10 subscription playing 3 minute pop songs would be paying for 500 tracks at 0.004 cents is $2.

That's not $7 as you would get in the figure claimed...

Yes hard data is difficult to come by so using the averages available is as close as I can generalise.

Playing longer songs means even less payout so perhaps my $2 is still generous...

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Craig Lyndall's avatar

They don't pay an actual per-stream rate. Spotify is an all-you-can-eat platform, so all per-stream calculations are done after the fact. Spotify's deal with the labels is to pay 70% of all music-related revenue, whether that comes from subscription revenue or advertisements. Spotify doesn't have to share 70% of non-music revenue from podcasts or audiobooks.

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