Spotify Will Make Bands Rich One Day, it Promises

By Gary Cutlack on at

Spotify has opened a new stats-heavy web site designed to be read by the world's music artists and industry types, hoping to convince the likes of Thom Yorke that it can pay bands enough cash to fund all their bizarre rider requests and secret habits and hobbies.

The new Spotify Artists site completely breaks open Spotify's business model, not just telling us how much it pays but also showing its workings as to how payments are calculated. And despite going to some lengths to point out that it doesn't simply pay bands on a per-play basis, it does, on average, end up paying out between $0.006 and $0.0084 each time a track is played.

What Spotify really wants people to know is that the amounts it pays bands will grow as its inwards-paying subscriber base grows, suggesting that a "niche indie band" that currently makes $3,000 a month on its current example figures may see that rise to $17k, should the streaming site manage to get its paid subscriber total up to 40m.

Plus it's teaming up with merchandise provider Topspin to help band shift t-shirts and hoodies -- and won't be taking a cut of those sales.

Happy now, Thom? No, didn't think so. [Guardian via Twitter]