You know those annoying-ass ads on Spotify that remind you over and over again that every time you listen to a song, the artist and rights holders get paid?
Bet you never thought about how much money all those plays actually adds up to. Daniel Ek, the chief executive and co-founder of Spotify revealed on Tuesday that Spotify will pay out $500 million to music copyright holders.
That $500 million is reportedly equal to the amount of money Spotify has paid out every previous year combined.
Pandora paid out $230.2 over a year and VEVO has paid a total $200 million since its 2009 launch.
Sounds like Spotify’s partnership with the music industry is extremely lucrative for the record labels to say the least.
For the first time in history, Spotify is proving that the digitization of music can actually cause an increase in revenue for the artists and their bosses, as opposed to the decline to the industry as a whole.
Sean Levinson | Elite.