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.
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.