As for scale, Spotify's audience is still relatively small. As
of March it had around 24m users globally, 6m of which are paying subscribers.
In July an anonymous classic rock album received around $17,000, but according
to Spotify, that same album could receive $87,000, if the firm grows to have
40m paid subscribers.
Spotify-skeptics should consider the alternatives. YouTube is a
popular streaming service, but it pays far less per song. Piracy continues to
cost musicians dearly. Spotify’s free service may appeal to some music pirates,
which means artists may receive payment that might otherwise be lost to illegal
file-sharing.
As part of its effort to become more artist-friendly Spotify
will also start making data available to show artists how many times their
songs are played, where and by what sort of user. In addition, bands will be
able to start selling concert tickets and merchandise—an increasingly important
part of their income—through Spotify.
