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Spotify pays billions in royalties, and artists can make millions

Spotify defends itself against Taylor Swift, saying artists can make millions per year in royalties
By: Michael Hatamoto | Business, Financial & Legal News | Posted: Nov 12, 2014 9:17 pm

Popular music artist Taylor Swift decided to pull her music from streaming service Spotify earlier this month, and now Spotify is firing back. In addition to paying more than $2 billion in music royalties for the right to stream music, Spotify says Swift - and other top artists - "are on track to exceed $6 million a year," with that number expected to double next year.

 

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"Lots of problems that have plagued the industry since its inception continue to exist," said Spotify CEO Daniel Ek. "As I said, we've already paid more than $2 billion in royalties to the music industry and if that money is not flowing to the creative community in a timely and transparent way, that's a big problem."

 

When Swift announced she was pulling her music from Spotify, it seemed like a rather curious choice. Ek also said that 80 percent of subscribers started as free users, and a music track that is played more than 500,000 times pays between $3,000 to $4,000 in royalties.

NEWS SOURCES:Washingtonpost.com, Rack.3.mshcdn.com

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