Unlock Your Sound
  • Home
  • Articles
    • Music Promotion
    • Music Production
    • Music Business
    • Subscribe
  • Videos
  • Labs
  • FREE
    • FREE Mix Master Starter Guide
    • FREE Music Marketing Starter Guide
    • Free Mix Feedback
    • Mailing list
  • more…
    • About
    • Discord Server
    • Submit Music
    • Contact
business-2846185_1920

What artists need to know about Spotify and the major labels

Christopher Carvalho

Trying to “win” as an artist on Spotify is akin to trying to win a rigged game.

In this article I am going to show you some interesting facts that solidify this opinion – starting with the obvious stake the labels have in Spotify and how the former hold all the leverage in this business.

In the process of writing this, I have also dug up some very interesting articles that go into further detail on each of these points. All of which are linked and listed at the end of this post.

Spotify’s relationship with the major labels

Did you know that Spotify paid the majors yearly advances to keep their music on the platform?

Pretty much every digital streaming service’s deal with labels (including indies) will contain a combination of a per-stream royalty rate, plus revenue sharing, an advance and minimum guaranteed revenue.

Source: https://www.musicbusinessworldwide.com/sony-we-share-spotify-advances-with-our-artists/

Did you know that the major labels also have an equity stake in Spotify?

Image source: Music Business Worldwide

The ownership stake the labels have in Spotify has been documented quite heavily.

It’s important for artists to remember this because it should remind them that they don’t have a seat at that table. That’s not an arrangement that was built in their interest.

Here is an article from Music Business Worldside which goes into some detail about those deals.

The majors and their playlists

Below are the names of some of the biggest “independent” playlist brands on Spotify.

Each of which are owned by a major label.

I have linked to their sites so you can scroll to the bottom of them and see for yourself.

  • Filtr (Sony)
  • HITS fka Digster (Universal)
  • Topsify (Warner) 

The relationship between Spotify and the majors goes even deeper.

The majority of the so-called “editorial” content is shaped by Spotify’s relationships with the major labels and if not directly, then indirectly, a way in which they uphold the marketing agreements within their deals.

Source: https://www.hypebot.com/hypebot/2017/06/secret-lives-of-playlists.html

The fact that the majors own these brands, control what makes it onto those playlists, have ownership, and receive guarantees from Spotify, all goes to show how rigged the Spotify game really is.

And then on top of that, independent artists promote Spotify whenever asked to do so.

Case in point: Spotify Wrapped.

Spotify Wrapped

Every year Spotify sends out social media ready graphics designed to show off the artist’s latest streaming figures to their followers.

All this content is heavily Spotify branded and probably garners them a big boost in brand awareness.

Spotify emails marketing materials to the artists on its platform, then the artist posts those Spotify-branded graphics on their social media channels.

Basically, Spotify taps its artists to do free marketing for them.

A rigged game

My motivation for writing this piece is just to help artists understand that these entities weren’t necessarily designed in their interest, they were designed to take their work and exploit it.

Sources

The Verge — This was Sony Music’s contract with Spotify: https://www.theverge.com/2015/5/19/8621581/sony-music-spotify-contract

Hypebot — Not All Spotify Playlists Are Created Equal: An Unedited Look Behind The Green Curtain: https://www.hypebot.com/hypebot/2017/06/secret-lives-of-playlists.html

MBW — Here’s exactly how many shares the major labels and Merlin bought in Spotify – and what those stakes are worth now: https://www.musicbusinessworldwide.com/heres-exactly-how-many-shares-the-major-labels-and-merlin-bought-in-spotify-and-what-we-think-those-stakes-are-worth-now/

The Fader — This Contract Between Sony and Spotify Sheds Light On How Streaming Actually Works https://www.thefader.com/2015/05/19/sony-spotify-contract#:~:text=The%20contract%20between%20Sony%20and,negotiates%20a%20bigger%20advance%20from

Further reading:

https://www.latimes.com/entertainment/music/posts/la-et-ms-prince-imaginative-legacy-music-business-20160422-story.html

Related Posts

priscilla-du-preez-XZEYdvJznMQ-unsplash

Music Business

[FREE PDF] The truly independent business model for music artists

eric-nopanen-8e0EHPUx3Mo-unsplash

Music Business

How to be a better music fan in 2021

david-and-goliath

Music Business

[MEME] David and the Music Industry Goliath

Music Promotion

  • sales-funnel-4318480_1920Marketing Funnels for Music Artists and Producers
  • sunset-1012477_1920Best ways to Learn Music Marketing
  • influencer-4081842_1920Content Marketing for Music Artists and Producers

Music Production

  • speaker-820005_1920How To Calibrate Your Monitoring Using Spotify
  • drum-set-1839383_1920How To Produce Realistic Drum Tracks In-The-Box
  • Screen Shot 2017-01-26 at 17.01.17How to Rearrange Aux tracks in Logic’s Mixer

Music Business

  • priscilla-du-preez-XZEYdvJznMQ-unsplash[FREE PDF] The truly independent business model for music artists
  • eric-nopanen-8e0EHPUx3Mo-unsplashHow to be a better music fan in 2021
  • david-and-goliath[MEME] David and the Music Industry Goliath

Categories

Videos

collect royalties
Unlock Your Sound
  • Home
  • About
  • Cookies
  • Contact
© Unlock Your Sound Ltd Company # 11443507