Pros:
1. Increased revenue for “working artists” may provide a more sustainable income stream.
2. Fairer distribution of royalties may incentivize emerging musicians and support diversity in the music industry.
3. Listeners may benefit from a wider variety of high-quality music as artists are encouraged to create and release more content.
Cons:
1. The impact of the revamp on overall subscription costs or revenue for Spotify is unclear, and it could potentially lead to increased fees for users.
2. The definition of “working artists” may be contentious, potentially excluding certain musicians from benefiting.
3. The effectiveness of the revamp in addressing all financial challenges faced by artists remains uncertain.
context: https://www.engadget.com/spotify-looks-set-to-overhaul-its-royalty-model-next-year-081722667.html
Spotify’s royalty model is set for a major overhaul next year, as reported by Music Business Worldwide. The aim is to increase the share of earnings for “working artists”. Expected to roll out in the first quarter of 2024, Spotify plans to introduce three key modifications to address certain challenges.
