‘Viva Spotify’ isn’t quite the phrase being bandied about at Midem, and executives from both sides of the Atlantic are continuing to disparage. But this is a nuanced picture. Most European executives we’ve talked to recognized that Spotify has achieved ubiquity in many countries, and considerable progress on the premium front. And, this is an addictive product that’s playing by the rules.
But the money situation is problematic, and that has prompted a few independents to jump ship. But also on the major label side, the royalties are a royal problem. In fact, one major label executive close to the numbers pointed to a bizarre problem: there aren’t enough zeros in the royalty program to calculate the fractions being paid by Spotify.
So, think .00000000000005 euros and you get the idea. “It’s laughable, if it wasn’t so sad really,” the executive told Digital Music News after a few beers.
…to be continued…