Do I Really Want My Music on Spotify?

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I hate this question. It’s one we’ve been trying to avoid on Grassrootsy for a while because it’s a hard one to answer and I’m kinda biased.

WHAT IS SPOTIFY

First we’re not going to blindly assume that everyone reading this post knows what Spotify is. It’s a music streaming service that sells access to music instead of ownership. In other words. An artist can pay a monthly subscription fee and have access to unlimited amounts of music. However they cannot download that music onto their technological device as if they own it.

THE BEAUTY OF SPOTIFY

The beauty of this model (for the music lover), is they can listen to literally almost anything and never have to pay for it (in the concrete sense). It’s a great place for music exploration. There’s also an ad-supported free version that users can use. It’s a Pandora-type experience where advertisement are interjected into the listening experience .

THE PROBLEM WITH SPOTIFY

To be honest, I think Spotify has developed an incredible model for the stereotypical 21st-century listener who no longer buys full albums but  whose world revolves around purchasing singles and the Pandora-model of music exploration. Spotify is the solution to the idea that Rhapsody got sued for over 10+ years ago. People want to try out music but they don’t want to pay for it. And in many cases, if they try it out, they might like it enough to buy it.

But that’s also the problem – they might not ever buy it. People just aren’t buying music like they used to. If you’re on a major label, or Justin Beiber, it doesn’t hurt as much. You’re still getting millions upon millions of people listening to your song every month which equates to money being made off of those streams. But if you’re the average independent artist, those spins don’t mean much. They don’t add up.

THE NUMBERS

Its hard to find trustworthy information because many of the articles we’ve found online are incredibly biased. But we’re citing The Next Web because they’ve also included a payment chart from an actual artist’s  iTunes, Rhapsody, and Spotify streams. First off, here is how much you’re making from Spotify:

 $0.0096 per stream
(that’s almost 1 American penny)

And here is Next Web’s supplied graphic on streams.

Like we said, if you’re Beiber or Lady Gaga, you’re getting millions of streams and (in theory) making more than you would be if you were just selling a copy of your album. But in most cases, the numbers don’t really add up for the independent artist.

As an aside, here is Spotify’s explanation on how they payout so that you have both sides of the argument.

THE CONSOLATION PRIZE

I have people ask me literally all the time if my new album is on Spotify. The answer is no. And because of that I know for a fact there are people who will never hear my album because they don’t have easy, free access to it. How do I feel about it? Well the feeling is bittersweet.

For one, I’m glad there are people who will actually go “out of their way” and listen to the album on iTunes…or better yet, my website to determine if they like it enough to buy it. And on the other hand, I know there are people who will never listen to my album simply because its level of accessibility doesn’t meet their Spotify standards.  So I suppose Im missing out on the consolation prize of additional exposure and potential new fans. But I’m also deciding that this is the price I will have to pay for a business model I am not personally excited about.

Maybe that will change one day.

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joyike Joy Ike is a full-time singer-songwriter based out of Pittsburgh, PA. She is also the founder of Grassrootsy, a music marketing blog for independent artists. She believes the greatest tragedy in the world is having a talent and keeping it to yourself. You can find her at www.joyike.com or follow her via twitter: @joyike.

 

 

  • http://twitter.com/mhgaither mhgaither

    Hi Joy – It sounds like you went through the same “Should I be on Spotify” questions that I did. I’ve left my three CDs up there – and am debating yanking them down – for all the reasons you list in your very detailed article above.

    It’s an ongoing issue for independent artists: Should I offer my music for free, and if so, how much of it? There’s no right answer, and it’s different for everyone.

    (I’m sneaking the time to write this comment in during my day job, so I’m obviously still at the lower end of the indie chain.) ;)

    For a time, I also had a Spotify button with the other social network buttons on my web site (michaelgaither.com). I decided to remove it. As an indie artist, what I make in downloads and streams looks very much like the spreadsheet screenshot you showed above. I have song samples – and a few full-length songs – on my web site for the wonderful folk who are willing to find there way their and check out my music.

    I might change my mind back one day. Maybe.

    Thanks again for these great posts.

  • http://twitter.com/justinjamesband Justin James

    You absolutely should have your music on spotify. If you’re in this biz for the money then you are in it for the wrong reason. Get your fan base up by every possible way…money will come when you have a solid fan base. Sure it doesn’t pay a lot …but it gets exposure. By eliminating Spotify you element potential fans, not exactly a good way to succeed. Focus on building fans…only this. When you have a solid fan base everything else will fall in place.

  • Omotola Ajibade

    Interesting perspective. Hadn’t given it much thought. Come to think of it, I can’t really say that I’ve been apt to discovering artists that are bubbling under the radar through Spotify in particular. I imagine I might be looking in all the right places. On the flip side, if you’ve got even a small but very devoted following, you could essentially turn them into your spotify street team.

  • http://www.facebook.com/joyike Joy Ike

    HI Justin,
    Those are great thoughts. The money issue is a part of the problem. But more than anything, its really an issue of principle. Is Spotify really being fair in how its operating? If it were just about the money, then i wouldn’t submit my stuff to Pandora since that’s a free service. But I am 90% done with that process and excited to be up on their platform soon! So money definitely isn’t the deciding factor. Thanks for chiming in!

  • http://twitter.com/evolvor eric hebert

    The “ongoing” issue here is that independent artists are ignorant – they are only aware of the business model that has existed in the past, the one where you “sell” your album or audio tracks. That model is on the way out, the same way it is for almost every other “file” based business model.

    Cloud Computing is taking over. Microsoft Office used to be something you paid to have on your computer. Now they are moving to a subscription based model. Adobe Creative Suite – you know, those fun tools like Photoshop and such that you use to make creatives – same kind of business model. These also just happened to be some of the most pirated types of programs people stole all the time. See a theme here?

    Movies = Netflix.

    Music = Spotify – Google just rolled out it’s own subscription platform.

    Definition of ignorance – lacking knowledge or awareness. That’s the biggest issue here. The question is, how can YOU as an artist embrace a subscription model yourself. You can start by creating a fan base, one through Spotify, and going from there.

    Or you can be stubborn and keep your music hidden. With so many artists out there, you’ll be surely passed over like so many who think like you do.

  • http://www.SteveChab.com/ Steve Chab

    Is this the same reason you only have some songs on http://joyike.bandcamp.com?