Spotify defends business model, projects $1B in artist payouts this year
Spotify said it is on pace to pay out more than $1 billion this year to recording artists who stream their music across its platform, with payouts already reaching $500 million during the first six months of 2013.
Spotify is increasingly under fire from performers who maintain that the digital music platform fails to adequately compensate their efforts. This weekend, Radiohead frontman Thom Yorke removed his solo catalog from Spotify's library: Yorke's producer Nigel Godrich explained the move via Twitter, stating "The reason is that new artists get paid f--- all with this model. It's an equation that just doesn't work."
Spotify defended its business in a statement to TechCrunch. "Spotify's goal is to grow a service which people love, ultimately want to pay for, and which will provide the financial support to the music industry necessary to invest in new talent and music… We're 100 percent committed to making Spotify the most artist-friendly music service possible, and are constantly talking to artists and managers about how Spotify can help build their careers." Article