Major Labels Keep Most of the Money from Spotify, New Study Says

The ongoing dispute between Spotify and (some) recording artists over insufficient payments could experience a drastic plot twist. According to Music Business Worldwide, a recent study led by French recorded music trade body SNEP and Ernst & Young concerning the final destination of the money from streaming services Deezer and Spotify suggests that it’s the major labels, not the online streaming service, that takes home the lion share of the payout. In detail, the report reveals that the labels cash in up to 73% of payouts from Spotify/Deezer, followed by writers/publishers with a 16% share, and then artists — mostly paid by their labels — who get 11%. Have a closer look at how the money is split through the graphs below. Courtesy of Techdirt.

And here’s who takes home what from the revenues paid out by streaming companies to music rights-holders.

The study also indicates that 95% of the major label’s share goes into expenses such as marketing, making and/or distributing the music.