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The Wake-up Call Spotify Has (not) Been Waiting For

The Wake-up Call Spotify Has (not) Been Waiting For

The rise of NFT, mainly via Ethereum Blockchain technology, should have at least one good outcome- motivate Spotify to re-think its compensation program towards content creators.

How do I describe NFT?

Called the “Aura of Authenticity”, the NFT is a non-fungible token that grants special ownership over a certain digital aspect. As an example, you can think of a virtual equivalent to a Mickey Mantle baseball card.

Using NFT you can have digital ownership of some aspect you feel passionate about, or see a financial value for as a collector.

Clubhouse Incubation Center

In the past few weeks, artists and other creators have been hanging out more and more in Clubhouse rooms discussing how they can “get in” on this action.

The room in which I participated was high Energy, to say the least. The group chat was live for “16 hours” and going. Many speakers described what was happening as a life-changing moment.

It felt a bit like a cult. There were more unanswered questions piling up. At some point, the overwhelmed organizer who did not expect to speak to 4000 ppl said: “I have no idea how to answer your question but imagine you’re now on Mars in the sense that you are the first”.

I laughed. It sounded to me like a pyramid scheme without a purpose, but the high energy and constant flow of ideas led me, the skeptical, to re-visit the “Spotify” Artists’ compensation paradigm.

250 Streams = $1 (wtf?)

Spotify pays a starting music artist around $0.003 – $0.005 per . Why can’t the 70B giant pay properly to its creators?

Some A-level creators like Joe Rogen’s or labels like Universal Music get paid very well. In fact, 51% of Spotify revenue goes towards labels and artists. However, who decides on the amounts? Does it really make sense to pay Rogen 800k for a couple of hours?

Though it’s not eco-friendly and honestly out of my current understanding, NFT presents a great opportunity for small content creators to reassert control over their creation and have at least one more bargaining chip.

Hopefully, this direction would motivate Spotify to re-evaluate once more their financial allocation strategy. I for once think it’s time.

Article By Ben Hasson, Founder of Sound-Ad! Digital Advertising Enthusiast

By Sound-Ad Blog