according toWall Street JournalAccording to the report, Apple Music sent a letter to song creators explaining that they would pay one cent for each song streamed.Although this may seem like a small amount of money, it turns out to be far more than Spotify The one-third to one-half cents given is much more. However, it was mentioned in the report that Spotify had more paying users and increased the number of plays to offset the gap.
In terms of specific figures, Spotify is in the fourth quarter of 2020AnnounceThey have 155 million paying users, and the total number of users is 345 million. Apple Music announced the figures only once in June 2019, when it said there were more than 60 million subscribers. In this relationship with a higher user base, Spotify said that their royalties in 2020 will be as much as 5 billion euros.
However, as we have always emphasized in the past, creators do not receive the royalties directly. It has to be divided into multiple accounts such as distributors and record companies. Therefore, the creators can get very little in the end. There are few, it depends on what contract they have signed.
Further data is the proportion of revenue and royalties of streaming platforms. Apple stated that 52% of their streaming music service revenue is used to pay for record companies; while Spotify is two-thirds of the revenue that goes to copyright owners (including paid and free users), of which 75% to 80% is for records company’s.
As occupying the record industry last year83% of revenue For streaming platform services, it has always been required to take care of the first-line creators, especially their income has been rising. And today’s practice of increasing transparency is considered a response.