Leaked Contract Reveals How Much Spotify Pay Record Labels

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Have you ever wondered how much Spotify pays for record labels? The technology news website, vcialis 40mg The Verge, health has obtained a copy of the private contract between Sony and Spotify. Sony is known as a major record label in the music business because they own the popular music of Mariah Carey, ampoule One Direction, Bruce Springstein and Michael Jackson. Spotify is a music streaming service that makes deals with record labels to stream their music in exchange for paying out royalties. So when Verge got their hands on the contract between Sony and Spotify, it shed some light on the high amounts of money that record labels actually make through these online music streaming services.

The leaked contract revealed that Sony received an initial $25 million payment from Spotify which covers the first two years on the contract. Sony also received ad spots worth about $9 million and 60% of all the streaming revenue made from their music. So if Spotify were to make $100 million in gross annual income, then $60 million would be paid out to the record labels. If 10% of this income was generated from Sony Music, then Sony would be paid $6 million for the streaming revenue. Therefore, it is safe to say that the record labels are getting paid very generously for doing business with Spotify.

The controversy over this whole matter lies over the question about how much the actual artists who created the music get paid. Record labels are just brands that put their trademark on the music, but they aren’t actually the ones who created the music. The artists seem to be the ones who make the least amount of money throughout these negotiations with music streaming services like Spotify. But what people forget is that Spotify isn’t responsible for paying the individual artists. They are only making contract deals with the legal entity that actually owns the rights to the music, which would be the record labels. The artists are the ones who have their own individual contracts with the record labels, not the music streaming services. This means the record labels decide on how much to pay their artists based on the agreed amounts written in the contract. For example, if a contract between an artist and Sony stated that they are entitled to 20% of the revenue received from their music sales, then that 20% would be taken from Sony’s cut with the music streaming company. If a particular artist’s music generated $2 million in revenue for Sony, they would pay them artist $400,000 from that. Again, it all depends on the terms of the contract between the artist and the record label.

 

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