Spotify’s message for artists: Do the math

Spotify's payments to record companies and publishers are pegged to its gross revenue, and increase roughly in proportion to the increase in Spotify's user base. Performance royalties paid to artists, however, are set on a per-use basis, not a per-user basis, and make a poor proxy for an artist's value to the service.…

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Boxing in Pandora

While Warner is the first major record label to sign such a broad royalty deal its arrangement with Clear Channel is already being looked to as a template for a broader detente between the record companies and broadcasters.But it may not be a template Pandora can follow.…

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Spotify revenue up, profits down

The good news, for investors at least, is that Spotify managed to convert free users to paid users at an impressive rate. According to CEO Daniel Ek, 20 percent of people who use the service regularly end up paying for a subscription, a much higher conversion rate than for most freemium services.…

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