After country-singer-turned-pop-sensation Taylor Swift announced she was pulling her entire catalog from the highly popular streaming service Spotify, several country artists have decided to follow suit. One of those being Jason Aldean, who's removed his most recent album 'Old Boots, New Dirt'. Others include Brantley Gilbert and Justin Moore, who have also removed only their latest releases. There are several different sides to the streaming argument which is causing quite a stir in the music business as a whole. I have my opinions, but I'll let you make your own.
Here are the details you need to know:
1. Spotify is free to users, but offers a paid subscription based service that is ad-free. The free version is supported by ads.
2. 70% of Spotify's revenue is distributed to rights holders. For each 'stream', Spotify pays the rights holders between $0.006 and $0.0084. There's a formula behind this that can be found on Spotify's Artist website. Artists receive a cut of this money based of off the royalty rate in their contract. (Ex: A song with 65 million streams would earn between $390,000 and $546,000 - the artist would receive a percentage of this)
3. Spotify's argument is that streaming services have cut down on piracy dramatically. Would you rather have your songs illegally downloaded or legally streamed? One puts money in your pocket, the other doesn't. Spotify has paid $2 billion to rights holders since the service began in 2008.
4. Artists arguments vary widely. Taylor Swift made a statement that essentially said music is art and should not be given away for free. Aldean argues that Spotify is taking away from digital downloads (iTunes, etc.) in which songs are $0.99 or $1.29 each. This means songwriters, producers, engineers, etc. are losing money.
5. The arguments isn't exactly Spotify vs. Artists, as not all artists are opposed to the service. Foo Fighters frontman Dave Grohl recently stated in an interview that he doesn't care how much people pay to listen to his music, he just wants them to listen.
What's your opinion on Spotify? Comment below or tweet us @MusicFromTheRow!