Spotify “Direct Deals” vs. Major Label Artists: A First Look

After the IPO and the Big Three (and the independent digital rights-focused Merlin Network) made out with a nice liquidation, Spotify’s gloves came off, and allegedly began negotiating directly with independent artists and their managers. “Independent” in this case means completely do-it-yourself (DIY), as opposed to being signed to an independent label- which likely are hit worse due to their smaller market shares.

Essentially, Spotify and artists would cut out the “middleman”. The value for Spotify is that they could pay out less to the artist than their label, and the artist would receive a higher percentage than they would probably receive from their label anyway.

Source: blog.chartmetric.io

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