Spotify’s Newest Pitch to Labels and Musicians: Now You Pay Us

He tells The Verge that Spotify will incorporate a hybrid business model with three distinct parts. One will involve the typical user subscription revenue, another is advertising dollars through its podcast ad marketplace and music streaming ads, and the third is a la carte options, like helping musicians and podcasters sell merch, tour tickets, or... See more

And even Spotify, one of the largest digital subscription businesses in the world — which divulged last week that it’s paying between around $140 million to $195 million to buy The Ringer — still makes its podcasts available for free in its app, not requiring a Premium subscription. That may change someday. But purchasing The Ringer — and Gimlet Me... See more

This is reflective of a broader trend—artists want direct ownership over the relationship with their fans, and to be compensated based on how these fans interact with their music. Case in point: SoundCloud’s recent foray into ‘fan-centric’ payouts, Deezer’s continued experimentation with user-centric payout models, and the ongoing parliamentary inq... See more