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How did Spotify start? Let's start with a brief recap of the origins of the music-streaming market giant. Spotify was born in 2008, in a music industry ravaged by the disruption caused by the advent of digital music, mp3 exchanges between individuals and the critical drop in CD sales. At the time it stood out as one of the only alternatives to free piracy and CD purchases for music lovers seeking to listen to a specific track. How does the money flow at Spotify? ‍ Spotify then distributes the rest to its partners: the record companies, digital distributors, collective management organizations (CMOs)/performing rights organizations (PROs)/mechanical rights organizations (MROs) in each country, and independent management entities (IMEs) like Bridger. In most countries, the CMOs/PROs/MROs take about 12-15% on behalf of the authors, composers and publishers. We have explained all this to you in a previous article about copyright. With this system, even the fees paid by French subscribers who only listen to a specific Norwegian hardcore metal band without a label go to the pockets of the most streamed artists. However, as the Norwegian band puts its music on streaming platforms via a distributor and without a label, it gets 100% of its master royalties according to its digital distributor's share of listening in France. He also receives the copyright royalties collected by the CMO. Therefore, he isn't paid according to the number of listeners he has in France. Conclusion: it is better to consider Spotify as a 100% promotional tool that serves to install its image online, seduce its audience by sharing news and messages. To make a living out of your music, there are more efficient ways – like music sync, or selling concert tickets and merch. Studies from 2019-20 estimate that the average remuneration of an artist per track streamed on Spotify is 0.0030 cents, although it depends on the contracts signed between artists and labels, or between distributors and artists. In any case, streaming is a promotional tool, and it is better to focus on other sources of income such as online sync and live performances. high quality imitation bagscheap tote bags
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