Following in the footsteps of SoundCloud, Spotify has launched a new website called Loud & Clear, which aims to allow people to get more of an insight into the streaming platform’s royalties system.
Loud & Clear allows people to get a more in-depth look at pay-outs from Spotify, and shows how the websites royalties are paid. It also gives a brief breakdown of how the payment structures in the music industry work.
It works by splitting artists into eight categories divided out using the information on things like average royalties generated and average plays. Without going into detail relating to specific artists, it groups people into categories divided out by values of money, and shows how many artists fall into each category.
If an individual artist feels that somewhere down the line they have been underpaid by Spotify, then this website wouldn’t really help in an instance like that. It instead gives the general public an insight into how much is being paid out by Spotify.
Streaming makes up 50% of revenue from recorded music, and Spotify is the largest streaming platform, so their transparency is important for the health of the music industry.