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I believe they got their numbers wrong for the investments in Spotify from the record labels. I seriously doubt Spotify is valued at around 50,000 euros.

Artists are generally short changed when it comes to this sort of thing, whether it be selling music or streaming it. Artists make the bulk of their money in ticket and merchandise sales. It would be far more interesting to see how much the record companies are making per 1 million plays. It might also be shockingly low, but I somehow doubt that the record companies would sign a deal where they made little more than a few hundred bucks per 1 million plays.



re:their numbers, Spotify's valuation is closer to $1bn. But wired implies the labels got ownership in exchange for advances on future royalties: http://www.wired.com/epicenter/2009/08/ka-shing-spotify-inve...

And I can't find a primary source, but the consensus seems to be that Sony paid 30,000 kroner in cash for their share of Spotify, which jibes with the figures in the OP: http://www.p2pnet.net/story/26736


So it seems that the record labels are more to blame for the low amount that artists are making, which isn't particularly surprising. If the labels did get some amount of ownership for advances on future royalties, the artist would be making significantly less due to the labels not collecting said royalties.




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