Spotify paid the musicians too much

24 juin 2019

On the Spotify side, royalties have always been a sensitive subject. Many artists are not satisfied with the royalties they receive through music streaming. On the Spotify side, there is a real problem in effectively tracking royalties. The company had also bought the start-up Loudr, "the big data of musical rights" a year ago to solve the problem. On the other hand, the cost itself is a big problem for Spotify. But the company seems to have found a rather radical solution.

Spotify wants a nice refund

Indeed, Spotify has made its accounts and considers have paid too much for songwriters and record companies over the past year and claims a refund. At the root of this problem, we find a decision of the American company in charge of the management of royalties. It is planning a rise of 43.8% over the next five years.

Currently, Spotify pays between 0.006 and 0.0084 dollars per stream, a sum divided between the various parties. The company is fighting of course against this increase, which would have negative effects for everyone, including musicians.

But the new system especially counts listening sessions in a different way. Depending on whether it is a student or family account, they don't have the same value. Spotify has redid its calculations and considers having paid too much in the year 2018. The American giant doesn't necessarily ask for a refund check, but the amount is deducted from what will have to be paid at the end of the year, to reduce the impact of rising prices. This request is not likely to settle in the short term the relationship between Spotify and the rightful owners. The overall figure claimed by Spotify has not been disclosed.