Spotify pays roughly two-thirds of everything it earns straight back to rights holders, and for most of its life it still lost money. The strange part is what happens to your subscription after you pay it: it does not go to the artists you listened to.
CHAPTERS
0:00 The company that pays out most of its money
0:36 Two products, one catalogue
1:11 Where the money goes first
1:43 The pool
2:17 Why a stream is worth so little
2:50 The thousand stream rule
3:28 Discovery mode
4:00 What Spotify actually sells
4:34 The playlist is the shelf
5:07 The honest arithmetic
This channel explains mechanisms, not investment advice. Nothing here is a recommendation to buy or sell anything.
Visuals in this video are AI-generated.
Music: Kevin MacLeod (incompetech.com)
Licensed under Creative Commons: By Attribution 4.0
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