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Monday, March 23, 2015

BEATS BEATS SPOTIFY ON THE ROYALTY SHEET

Better Pay-Stream Payouts From Purely Subscription-Based Service

A recent Hypebot item by Digital Audio Insider blogger and musician David Harrell emphasizes that even before its expected big relaunch as part of iTunes at Apple's June developers' conference, Beats is way ahead of Spotify in one key respect: per-stream payouts.

Harrell notes that his Beats payment was just over 1.8 cents per stream, compared to 0.428 cents from Spotify (see bar graph below). The difference, of course, is accounted for by virtue of Beats being entirely subsidized by subscriptions—though there are still two tiers of payment, with monthly subscribers furnishing more revenue than yearly ones. The Spotify returns are a mix of freemium (unlimited ad-supported) streams, which pay far less, and subscription fees.

 
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