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Originally Posted by bizaro86
Spotify pays around 70% of revenue for music rights. Hard to argue they could increase that hugely - 100% of revenue would be a pretty hard limit, and its reasonable that they cover their own costs/profits as well.
That leaves two places to change the money going to artists:
1) the share the labels keep, which is an individual negotiation. Given options like tunecore where the artist can keep 100% I'd expect this to improve over time.
2) the amount people pay. If spotify doubled their revenue the artist share would automatically double. But doubling their prices wouldn't do it - some people would quit after an increase, and presumably they're already optimizing ad rates on the ad supported side.
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From what I've read Spotify is still living off investor money to stay alive so rates aren't going to go up, even though they're pretty much the lowest among streamers, unless they increase prices. Apple would eat them alive if they tried that.
Tidal was supposed to be artist-owned but even they hardly pay anything, although they do pay more than Spotify.
Labels don't so much negotiate as dictate royalties. I don't see that changing.
So I think streaming will not survive unless fans accept that the artists they love aren't getting a fair deal and supplement streaming with album and merch sales, along with concert tickets. Good luck asking people to pay more in this economy.