Advertisement

We need your help now

Support from readers like you keeps The Journal open.

You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.

If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.

Andrew Matthews/PA Archive

Spotify CEO defends free streaming after Taylor Swift removes music catalogue

Daniel Ek defended the company saying it paid out $2 billion in royalties since it started in 2008, half of which was generated in the last twelve months.

THE CEO OF Spotify has launched a defence of his company a week after artist Taylor Swift removed her music catalogue from the service.

Swift’s label Big Machine took her entire collection off the service last week, with claims that other artists were going to follow suit.

Now the company’s CEO Daniel Ek said he was “really frustrated” by claims that artists and songwriters who claim that they’ve seen little or no money from streaming, tackling what he calls the ‘myths’ of streaming music.

Ek revealed that Spotify now has 50 million active users with 12.5 million paying for the service. From that, it’s paid $2 billion to “labels, publishers and collecting societies for distribution to songwriters and recording artists”, $1 billion coming from the past year.

When I hear stories about artists and songwriters who say they’ve seen little or no money from streaming and are naturally angry and frustrated, I’m really frustrated too. The music industry is changing – and we’re proud of our part in that change – but lots of problems that have plagued the industry since its inception continue to exist. As I said, we’ve already paid more than $2 billion in royalties to the music industry and if that money is not flowing to the creative community in a timely and transparent way, that’s a big problem.

That transparency was a major factor for Ek who said that it was the company’s responsibility to help improve this situation since it’s the leader in the field.

We will do anything we can to work with the industry to increase transparency, improve speed of payments, and give artists the opportunity to promote themselves and connect with fans – that’s our responsibility as a leader in this industry; and it’s the right thing to do.

Ek tackled claims that free music means artists don’t get paid – saying “nothing could be further from the truth” – that it pays out very little to artists and that it hurts both physical and digital sales.

Citing the $2 billion paid out since its was founded, Ek mentioned that 80% of its subscribers (10 million) started out as free users with the key message being “No free, no paid, no two billion dollars.” He claimed that at its current size, royalties paid to artists like Swift – before she pulled her catalogue – are “on track to exceed $6 million a year.”

Here’s the thing I really want artists to understand: Our interests are totally aligned with yours. Even if you don’t believe that’s our goal, look at our business. Our whole business is to maximize the value of your music. We don’t use music to drive sales of hardware or software. We use music to get people to pay for music. The more we grow, the more we’ll pay you. We’re going to be transparent about it all the way through. And we have a big team of your fellow artists here because if you think we haven’t done well enough, we want to know, and we want to do better. None of that is ever going to change.

Read: This Google-owned robot reenacts crane kick scene from Karate Kid >

Read: Goodbye, old friend: Microsoft has officially ditched Nokia from its phones >

Readers like you are keeping these stories free for everyone...
A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation.

Close
15 Comments
    Install the app to use these features.
    Mute Mac Muinteoir
    Favourite Mac Muinteoir
    Report
    Nov 12th 2021, 5:34 PM

    The day is coming when Ireland joins countries like Canada, Uruguay, Mexico, South Africa, and 18 US states in legalising cannabis for recreational use, simply because it is becoming ever more obvious that prohibition is a failed and harmful model.

    126
    Install the app to use these features.
    Mute Alan Byrne
    Favourite Alan Byrne
    Report
    Nov 12th 2021, 6:47 PM

    @Mac Muinteoir: Hopefully so Mac, I wish it would happen sooner.

    59
    Install the app to use these features.
    Mute Supes Kz
    Favourite Supes Kz
    Report
    Nov 12th 2021, 9:45 PM

    @Mac Muinteoir: It’s now decriminalised for recreational use in the Spain (EU) with some qualifications.
    Spain allows its citizens to purchase cultivation equipment and allows the cultivation of a limited number of plants for personal use.

    30
    See 1 more reply ▾
    Install the app to use these features.
    Mute Daniel Curtin
    Favourite Daniel Curtin
    Report
    Nov 13th 2021, 9:58 AM

    @Mac Muinteoir: looks like Germany will be making it fully legal for recreational use soon, which will be a big game changer for Europe

    12
    Install the app to use these features.
    Mute Mary Ryan
    Favourite Mary Ryan
    Report
    Nov 12th 2021, 4:41 PM

    Would love a cup of herbal tea right now….

    70
    Install the app to use these features.
    Mute Frank Cauldhame
    Favourite Frank Cauldhame
    Report
    Nov 12th 2021, 4:51 PM

    @Mary Ryan: “Green” tea it makes you feel ecstatic :-)

    31
    Install the app to use these features.
    Mute JustBEERbarry
    Favourite JustBEERbarry
    Report
    Nov 12th 2021, 8:32 PM

    If they caught nearly 8kg you can be SURE they missed 800kg recently. Boring.

    24
    Install the app to use these features.
    Mute Dean Stown
    Favourite Dean Stown
    Report
    Nov 12th 2021, 8:03 PM

    Destined for people in high places!

    7
    Install the app to use these features.
    Mute Thomas Claffey
    Favourite Thomas Claffey
    Report
    Nov 13th 2021, 11:43 AM

    Was it Barry’s tea or was he just holding it for a friend. I don’t believe they found the loyns share of it yet.

    5
Submit a report
Please help us understand how this comment violates our community guidelines.
Thank you for the feedback
Your feedback has been sent to our team for review.
JournalTv
News in 60 seconds