Re:Spotify Will End Service in Uruguay Due to Bill Requiring...
by Retric on Thursday November 23, 2023 @05:41PM
(#38398476)
> this is definitely not the case in reality.
Agreed.
Major labels have leverage which they use to get a larger slice of that 70% than they would otherwise make in a ‘fair’ split.
Well I do not have the numbers here, but I would argue that this is definitely not the case in reality.
> Spotify however wants to maximize its cut and so has incentives to shift money from less popular artists if it can entice major labels to its platform
It’s the other way around, because the platform has competing interests: Spotify wants to have the labels to sell an “optionality” to the users (I.e. get the money from subs) but in terms of reproduction/execution Spotify wants to reproduce the maximum of podcasts and/or long tail artists because in those 2 cases Spotify does not spend a single penny.
The labels has a very high bargaining power over Spotify due to its catalog, so as expected this is the biggest expenditure.
That’s one of the reasons why Spotify is desperately pushing podcasts like crazy.