Spotify Is Reportedly Negotiating Direct Deals with Independent Artists

Earlier this year, Spotify said that it would be working on new licensing deals with independent musicians and their managers. According to a new report from the New York Times, the company has quietly been arranging these direct deals over the course of the last year. “According to six people in the music industry who have been briefed on the recent deals, but were not authorized to discuss them publicly, Spotify has paid advances to management firms and other companies that represent artists who are not signed to a record label,” the Times reports.

“Spotify is offering artists two advantages: a bigger financial cut and ownership of their recordings,” the report continues. “The deals, furthermore, are not exclusive, leaving the artists free to license their songs to other streaming companies, like Apple Music and Amazon.”

The new deals would give artists a more direct relationship with Spotify, allowing them to more easily negotiate their way onto playlists. The initiative could mean bad news for labels, who currently negotiate similar arrangements with platforms on behalf of their artists.

“Although the deals are modest—with advance payments of tens or hundreds of thousands of dollars, according to several people involved—the big record companies see the Spotify initiative as a potential threat,” the Times report continues.

https://www.spin.com/2018/09/spotify-reportedly-negotiating-direct-deals-independent-artists/

The effects of this could be substantial. While record labels are struggling to get new artists to sign to their labels, streaming services are growing exponentially worldwide. Playlists are becoming what radio was, with one of these playlists having more than 20 MILLION subscribers. Some of these playlists can be credited for launching the career of many Gen Z artists. The future of the entertainment world is internet-based, cutting off the middle man. Youtube/Netflix is becoming the new Hollywood, and streaming services are the new center of music.

We still don't get to keep copies of the music we like. I'd still prefer Bandcamp over Spotify even if Spotify were fairer to the artists they work with. In fact, I've paid less for Spotify Premium (only two months' worth) than I have for digital downloads - I simply refuse to make that medium of music profitable. Plus, most of the music I like comes from the 2000s anyway.