Spotify paid out $300,000 to stream Taylor Swift’s music
The popular music streaming service Spotify has had to pay more than $300,000 in terms of royalty payments to Taylor Swift as she has come to learn that the service streamed her music for free and expressed contempt for the same.
Her songs have been played for almost 43.6 million times during the last month alone and so the royalty payments it is required to pay amounts between $280,000 and $300,000. It also published the formula it uses to calculate royalty payments in 2013 and claims that the average per stream payout is between $0.006 and $0.0084.
The figures include payments to labels, distributors, and publishers who are responsible to pass them on to the artists and songwriters whose creations are streamed. The song that has reached the largest audience this year is Summer by Calvin Harris and his royalty payout amounts between $1.2 million and $1.7 million.
Although the royalties amount to millions of dollars, the musicians repeatedly criticize the music streaming service for not paying them enough. After Swift’s departure, Spotify CEO Daniel Dk pointed out that the service has paid more than $2 billion to publishers and music labels since 2008 and the illegal downloads do not provide any sort of income to the artists.
However, Swift doesn’t seem to be convinced about her decision. She said, “I think there should be an inherent value placed on art. I didn’t see that happening, perception-wise, when I put my music on Spotify. Swift’s first single from her album published in 1989, Shake It Off has had almost 43.6 million plays in October and the singers who co-wrote the song including Shellback and Max Martin will also be included in the royalty payout she gets.
After seven weeks of playing, Swift decided to pull the song off the service which will further make it lose out on revenue.