863
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
this post was submitted on 25 Nov 2023
863 points (100.0% liked)
Technology
59276 readers
2202 users here now
This is a most excellent place for technology news and articles.
Our Rules
- Follow the lemmy.world rules.
- Only tech related content.
- Be excellent to each another!
- Mod approved content bots can post up to 10 articles per day.
- Threads asking for personal tech support may be deleted.
- Politics threads may be removed.
- No memes allowed as posts, OK to post as comments.
- Only approved bots from the list below, to ask if your bot can be added please contact us.
- Check for duplicates before posting, duplicates may be removed
Approved Bots
founded 1 year ago
MODERATORS
Nah the savings are probably being mostly passed on to stock buybacks and executive salaries
...I mean, 30% of the savings go to Spotify, so some part of it will indeed go to stock buybacks and executive salaries. Some of it will go to regular employee salaries, and some of it will go to pay for technical infrastructure, and some of it will go to pay for offices. Some of it will be spent on marketing, even.
70% of it will go to rights holders, though.
Spotify announced stock buybacks in 2021 that were greater in total that they most likely will pay artists in that same timeframe. Doing so artificially depresses the the amount of their revenue that's counted as profit, which is what they use to calculate artist royalties.
https://techcrunch.com/2021/08/20/spotify-to-spend-1b-buying-its-own-stock/
Again, not true - the royalty payments are based on revenue, not profit.
To understand how absurd the claim that royalty payments are based on profits is, consider that Spotify has had a grand total of two profitable quarters throughout its whole existence - are you seriously claiming that no artist ever got paid outside those two quarters?