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Some artists accept a 30% royalty cut just to featured in Spotify’s Discovery Mode. Listeners are being mislead and the music marketplace is being manipulated. Very little has changed since the profiteering of the 1950s radio payola. image
2025-02-20 15:12:45 from 1 relay(s) 5 replies ↓
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It’s worse now because at least the record labels back then had a vested interest in supporting and marketing artists. Now it’s use and discard.
2025-02-20 15:15:42 from 1 relay(s) ↑ Parent Reply
Not defending Spotify's dealings, but their operating margin isn't all that big (now that it's not negative). Around 8% last I looked. McDonalds' operating margin is something like 5x that. Operating margins of the big record labels back in the 1950s and 1960s like Columbia and RCA were also maybe 3x-5x higher than what Spotify's margin is now, I'm sure a few hit 40%, average maybe 25%. Plus at Spotify have also got USD 2 billion in debt to chip away at over the next few decades. I think what Fountain is doing is great, but not sure if it's an antidote to Spotify profiteering; feels like an antidote to something wider, and something that affects Spotify too.
2025-02-20 15:53:44 from 1 relay(s) ↑ Parent Reply