Almost 75% of Your Spotify Membership Goes to Labels and Roughly 11% to Artists

Music streaming services is still a very new idea, and undoubtedly has many vulnerabilities in its foundation. After battling Napster, torrents and other music search engines, artists are now channeling their anger towards Spotify. However, a closer look reveals the problem is not the services, but rather the artists’ management labels. Due to poorly negotiated contracts in combination with a lack of transparency from record labels, artists don’t end up with a lot of the money paid by Spotify with labels taking almost 75% of the money after tax, leaving approximately 11% for artists. For a deeper look into this issue, visit Techdirt’s website.