Streaming giant Spotify are reportedly asking for money from performers, amidst reports that they “overpaid” artists in 2018.
Ever since streaming became the most popular way for music-lovers to discover new tunes, artists have hit back at the services for the lack of money the musicians actually receive in the process.
While artists like Disturbed’s David Draiman and Car Seat Headrest have defended services like Spotify, others such as Portishead have previously noted how they received a paltry $3,280 from 34 million streams.
Despite claims from Spotify CEO Daniel Ek claimed that it’s easier than ever for artists to make a living from streaming, Misfits guitarist Doyle Wolfgang von Frankenstein noted in February how he is forced to partake in meet and greets just to help him gain the cash he says he doesn’t make from streaming.
“The thing that sucks the most about [the music industry] is that everybody steals music,” Doyle began. “You spend a fucking hundred thousand dollars to make a record and all of these fucking scumbags are just fucking stealing it.”
“[Artists] make nothing [from Spotify], it’s $9 a month, and you can listen to a song 10,000 times if you want. If there’s enough time in that month to listen to it 10,000 times, I don’t know, I can’t do the math.”
“But how much do you think the bands get? It’s like a hundredth, maybe a thousandth of a penny you get,” he continued. “My girlfriend [Alissa White-Gluz of Arch Enemy] went to their office, she said it was insane. I would’ve went fucking mental, I would’ve started breaking everything.”
“Lars Ulrich was right when he sued fucking Napster and everybody thought he was a dick. He didn’t do it for him, he’s got the fucking money, he did it for fucking jerk-offs like me.”
Now, Spotify have come under fire for paying artists too well, with the streaming giant revealing attempts to recoup money they overpaid to performers.
Check out Shakey Graves performing for the Spotify Sessions:
https://www.youtube.com/watch?v=si5zU859RKc
Back in March, news broke that Spotify and other streaming services were pushing back against a proposed increase in royalty payouts, claiming it would hurt “both music licensees and copyright owners.”
However, this decision by the US Copyright Royalty Board (CRB) led to a bit of a calculation mix-up for Spotify in regards to how streams would be counted for its student and family subscriptions.
As Music Business Worldwide reports, this new revenue plan notes that a “Student Plan shall be treated as 0.50 subscribers per month”, while a “Family Plan shall be treated as 1.5 subscribers per month”.
Due to these changes, Spotify have now done the math, and revealed they in fact overpaid artists as a result of these guidelines.
In a statement, a Spotify spokesperson explained that “according to the new CRB regulations, we overpaid most publishers in 2018.”
“While the appeal of the CRB decision is pending, the rates set by the CRB are current law, and we will abide by them – not only for 2018, but also for future years in which the amount paid to publishers is set to increase significantly.
“Rather than collect the 2018 overpayment immediately, we have offered to extend the recoupment period through the end of 2019 in order to minimize the impact of the adjustment on publishing companies.”
In another statement offered to Music Business Worldwide, National Music Publishers Association CEO David Israelite noted that; “I find it so hypocritical for a digital service that is appealing the CRB decision to then take advantage of the parts of that decision that benefit it. I guess we shouldn’t be surprised.”
Check out Kimbra performing for the Spotify Sessions:
