Spotify is making progress into direct artist deals. Spotify will now be offering advances to music artists and managers in exchange for being able to license their music on the streaming service, as reported byBillboard.
Under the terms of some of the deals, management firms can receive several hundred thousand dollars as an advance fee for agreeing to license a certain number of tracks by their independent acts directly to Spotify,” The report further explained.
It will permit managers and musicians to get 50 percent of the returns for each stream in some cases, Also artists can still authorize their music to other platforms as well. Instead of working all the way through a third party, Spotify possibly will also contribute to take these artists music directly and give them a more benefit. This will also save them for wasting time and money going for other options.
On music streaming platforms royalty is still a frequently debated subject because there are plenty of artists who believe that the amount they acquire from streaming isn’t as much equivalent to a physical album sales. Whereas popular artists might not get affected as they have other sources of profit and might have better options of the deal, this is a problem for smaller indie artists.
SiriusXM has also offered the same kind of direct deals to the distributors so it is not new for them. Apple music has also signed exclusive deals with few artists in the past like Drake. The deal will also target the other music selling companies like CD Baby, TuneCore, and AWAL. The artists will also get a big cut in return for skipping the publishers their demands. Instead of an indie getting the advance expense, Spotify is now offering to pay the artist and their managers directly.