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A million plays sounds like a lot when the payment is only $167, but compared to the old method of listening (radio at its peak) the rate is not massively far off the mark, assuming you can adjust per listener. The article below attempts to compare the UK radio PRS royalty splits with Spotify payments and if I'm reading the numbers correctly the middle estimate comes to around $300 per spin per million listeners (I'm using the estimate of £0.0001870 per spin per listener).

http://davidtouve.com/2011/12/13/uk-radio-versus-spotify-a-c...



Super interesting. We could stretch the technical arguments though. The play/stream is broadcast exclusively for me, sure. But then again, see my point below about Spotify being peer to peer application. It is, from an interface perspective, provisioned for me. But really songs are broadcast by individuals to other individuals. In the long run, this line of thinking is fun, but not much else. What matters is what it feels like, not how it's accomplished. And you know what, it's a pretty cool optimization from a technical perspective - gets my respect.




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