Despite this blog’s basic remit to cover contemporary classical music, one of its most popular posts has been ‘How much do musicians make on online?‘, a quick analysis of a graph published by Information is Beautiful about the relative remunerations of different ways of selling music.
That graph is widely-known, but it’s also four years old now. And since it was produced, Spotify have opened up a lot about how much they pay artists. It turns out that the Information is Beautiful graph was wrong on how much Spotify streams pay by around a factor of 30.
As Spotify themselves now point out, thinking of their royalty rates on a per-stream basis is a bit misleading anyway, since they make their calculations based on a percentage of the total revenue pie. So the more subscribers there are, the larger the effective royalty rate. But back in July 2013, when they started to release this information, they suggested that a figure of between $0.006 and $0.0084 per stream was not a bad basis for calculations. As their subscriber base grows, so that figure will go up.
Anyway, apropos of not much, I thought I would use these numbers to do a quick tot-up of how much money two famous Spotify objectors – Radiohead and Metallica – might have made from the service. I took the figures for number of plays given for the top ten songs on the artist’s Spotify page, and multiplied them by both the low and high estimations of what Spotify says it pays out on average per stream.
Bear in mind that these numbers are not externally verified – they’re what Spotify tell us is going on – but they are worth considering in the context of some recent debates over the long-term viability of paid-for streaming.
Thom Yorke has called Spotify ‘the last desperate fart of a dying corpse‘, and in October last year pulled his Atoms for Peace album, made with Radiohead producer Nigel Godrich, from the site. Yet here’s an idea of how Radiohead are actually doing out of Spotify:
That makes 107,302,714 plays (as of Friday 28 March). Based on Spotify’s estimated per-stream pay out, that’s somewhere between $643,816 and $901,342. OK, computer.
Despite dragging himself through the mud for a decade over Napster, Metallica’s Lars Ulrich made peace with online music in December 2012 and Metallica’s back catalogue came on stream. In fact, in the same month that Yorke and Godrich made their comments about Spotify, Ulrich claimed that ‘Spotify is working right now‘. The delay in joining probably accounts for Metallica’s fewer plays, but the numbers seem to bear him out:
That makes 67,151,066 plays (as of Friday 28 March). Based on Spotify’s estimated per-stream pay out, that’s somewhere between $402,906 and $564,068. Sad but true.
None of this is a definitive answer to the ongoing future of music debate, but I think it’s useful to see figures like this while that debate is being had.