Streaming: Spotify "Scrapes Barrel" for Subscribers

CNBC has an interesting article on streaming which is focused on Spotify's efforts to survive the costs of growth which include the cost of acquiring new subscribers and artist and record label demands to be paid more for streaming their music.

The article also talks about court cases that will ultimately set the cost per stream.  The article says Apple has suggested 9.1 cents ($.09) for 100 streams which amounts to .00091 per stream.

The decision expected at some point in 2017 will determine pay rates until 2022 and Apple has suggested a flat rate of 9.1 cents per 100 streams.

I believe this is an error because Spotify currently pays from $.006-.008 per stream.  I suspect that Apple is suggesting $.0091 per stream or $.91 per 100 because that is close to the rate I currently see on my streams, which is much better than Spotify. So if Spotify has to pay the rate suggested by Apple, they might have to surrender their butts to the giant.

At point I saw Spotify promoting a Family Plan which allowed six users to stream unlimited amounts for $15/mo.  I don't see how they could pay for the music and the infrastructure when charging so little.

I can tell you from my own experience that Apple Music has paid the most per stream of any of the streaming services, averaging around .01 per stream. 

There are many other interesting angles to this story and I encourage you to read the entire article here.

 

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