868
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
144 comments fedilink hide all child comments
you are viewing a single comment's thread
view the rest of the comments
[–] -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/

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 2 child comments
    •
  • [–] 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?

  • permalink
  • fedilink
  • source
  • parent