Spotify Is Asking For A Better Revenue Share With Record Labels

Spotify Is Asking For A Better Revenue Share With Record Labels
News

Spotify wants to remain a free online audio streaming platform, but they also want a larger piece of the profit they earn for so many artists and record labels.

As of right now, they are trying to cut a deal with three of the biggest record labels in the world (Sony, Universal, Warner Music) to get them to lengthen their contracts with Spotify and cut costs for using their artists as well.

Spotify doesn’t take in anywhere near as much money as they make for their rights holders and labels. 70% of their revenue is directed towards licensing fees, 20% to customer acquisition and the remaining 10% to leftover company costs.

What this means is that unless an agreement is reached, we’re probably either going to have to pay for Spotify or hear even more of those annoying-ass ads.

With all the money Spotify makes for these three labels already, it would be more than fair for them to let Spotify keep at least a little more of their overall profits.

We know we sure as hell wouldn’t want to pay to use Spotify and those ads (which have definitely increased as of late) are already making us want to abandon the platform altogether.

Sean Levinson | Elite. 

Share Tweet
React
Like Us On Facebook
Like Us On Facebook

Max G.

Elite Daily is a medium for people tired of disingenuous content; we have sought to create a space where stimulating, applicable content can reach a like-minded audience.

More In News

Technology Liz Rowley

China Will Get The World’s Fastest Elevators That Will Send You 100 Floors In Under A Minute

A global contender in all things, China is about to one-up us all where it really counts. Get ready for the worlds fastest elevator, courtesy of multinational engineering and electronics conglomerate, Hitachi. Earlier this week, news surfaced that two of the world’s most rapidly-ascending elevators were part of the construction plans for a Finance Center […]

Also On Elite

Envision

The Floor Is Lava! This Dog Can Balance On Virtually Anything (Photos)

Shout out to man’s best friend one time, real quick. But why are dogs so much better than their feline counterparts exactly? Well, for one, they aren’t all unpredictable and sketchy, they’re loyal and honest. And most importantly, they listen to whatever we have to say. You can teach a dog just about anything and […]

Life

Why You’ll Meet More Interesting People In Hell Than In Heaven

“Now is not the time for making new enemies…” was Voltaire’s response when asked by a priest at his deathbed to renounce Satan. H-E-double hockey sticks. For a long time, we couldn’t even say the word. It was as stigmatized and forbidden as f*ck, c*nt and all those nasty ones you just love to use now. Today, […]