Comment Re:Artists paid 16 times as much for Spotify than (Score 1) 305
They need a new model. Streaming on its own for $10/month is clearly not enough money to go around. Spotify has infrastructure costs and has been bleeding money (I think they had a break-even or profitable quarter just recently?). Meanwhile, they also need to distribute the remainder of the already paltry $10 between a zillion artists. It makes no sense.
This strikes me as highly non-obvious, do you think the average person spends more than $10/month purchasing music?
Annual US music sales are about $7bn
With the US population at 320 million that's only ~$22/year per capita, not counting Spotify's cut (and whatever portion of that already comes from streaming) that's means if no-one bought music any more only 22% of the US population would have to stream to make up the difference.
I doubt there are many people spending $120/year purchasing music long term. $10/month strikes me as a wildly lucrative prospect for the music industry.