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Google admits Spotify pays no Play Store fees because of a secret deal | TechCrunch (techcrunch.com)
submitted 2 years ago by to c/technology@lemmy.world
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[–] 2 points 2 years ago (1 child)

Nah the savings are probably being mostly passed on to stock buybacks and executive salaries

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  • [–] 12 points 2 years ago (1 child)

    ...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.

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  • [–] -2 points 2 years ago (1 child)

    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/

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  • [–] 21 points 2 years ago

    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?

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