This will be in English, to follow up an earlier post. Since I notice the search terms on “Spotify revenue” from visitors to my blog, I suppose the subject is interesting for you. Yesterday I got the first report from our distributor Phonofile, which has added Spotify to their flora of webshops.
As we are a small record company and not too famous bands, the numbers might seem small, but compared to other services like Last FM, we have a much better channel at Spotify, with more listeners. It seems like a great streaming service and I hope they will develop even more. It is also a wonderful alternative to illegal file sharing, since it really disarms all their arguments: Easy, free and with a great range of products.
Our band The Modesty gets the largest audience and we hope for even more, since they will tour England in the autumn. 8000 listeners from april – june is quite nice I think, and the detailed statistics tells about nationalities, popular songs and the type of Spotify account. The money then? Well, Gramtone gets a total of 6,87 Norwegian Kronor for this listening. Mainly the amount comes from the large numbers of free advert-based account. Tree full of people got 250 listeners and earned Gramtone 0,30 Norwegian Kronor and P.A.N got 300 listener and 0,27 Norwegian kronor.
The monetary infrastructure goes like this: Spotify shares the income 50/50, then our distributor gets 20% and after Gramtone gets the amounts I just mentioned, we share it 90/10 in the artists favour.
So there you have it. Nothing to make a living from, but maybe a complement to other channels for our bands.
The Artist gets (100*.5*.8*.9=)36%? That must be better than most record deals? isn’t it? sure your company still has the nicest margins i think, all love for you!
Yep, that is entirely correct. The thing is, we own our studio together as a cooperative and are all tired of the deals that our bands have met from other labels during the years (you cant play with other musicians and the company owns the recordings and they descide if to release albums). We just want to play, get our music out to the audience and get a fair amount of income from it. I think an ethic way of showing both the audience and the bands our transparent deals is the best way to go for us.
You can see our pricing policy here (but only in swedish):
http://www.grammofon.com/gramtone/prispolicy.html