In effect, yes. Given that ~70% of revenue goes to rights holders, making the amount of revenue bigger by not paying 30% of subscriptions to Google, the savings are passed on to rights holders.
It’s net revenue split to rights holders according to the share of streams. If you have 1% of all streams on Spotify in a given time period, you get 0.7% of net revenue for that period.
How the rights holders distribute the money onward to the artists is not exactly transparent though.
And Spotify pass these savings onto the artists, right?
In effect, yes. Given that ~70% of revenue goes to rights holders, making the amount of revenue bigger by not paying 30% of subscriptions to Google, the savings are passed on to rights holders.
So, not exactly to the artists. I get the impression you seem to know quite a lot about the deal, can you try to analyze how this 70% gets divided?
https://support.spotify.com/us/artists/article/royalties/
It’s net revenue split to rights holders according to the share of streams. If you have 1% of all streams on Spotify in a given time period, you get 0.7% of net revenue for that period.
How the rights holders distribute the money onward to the artists is not exactly transparent though.
I suspected that much, it must be a complicated matter with many different cases, considering how music is produced. Thank you for your insight.
Any time.
To be clear, I don’t think this should be taken as a defense of Spotify. I just think that these misconceptions distract from more valid criticisms.