Indie Labels On Spotify Only Make 4 Cents Per Album Play

Indie bands and artists on Spotify aren’t making enough to be sustainable. As a result, a lot of indie labels are quitting the service.

According to a recent GigaOM report, indie labels are leaving Spotify in droves due to the disappointingly low revenues generated by the service. Uniform Motion, an indie band from the U.K., revealed that they only make $0.0041 per song play, and just 4 cents per album play. This figure is arguably too low to sustain a fledging band.

Om Malik comments that the problem exists not only on Spotify, but across all digital music industry. Indie bands and artists simply don’t gain enough traction to create meaningful revenues from streaming services.

Spotify has only recently entered the U.S. market but it boasts a massive user-base in Europe, where it’s currently the second largest digital music channel. The company reacted to GigaOM’s article by providing an e-mail statement that focuses on the overall benefits of Spotify and the way its service contributes to a decline in rampant piracy rates.

Spotify

 

Quantcast