To me, $9.99 seems like a decent price. $9 might actually make me think about subscribing
Then again, I can't get over the fact that Spotify rakes in billions but pays artists almost nothing. And yet they have the money to pay $250,000,000 to a podcaster
Ok, so lets work this out, based on 2 things we know:
- You are willing to pay $9 a month, or .30 cents a day for a streaming service.
- A streaming service cannot or will not lose money and needs to make money on top of what it is paying to artists.
A month = 30 days
Days = 24 hours
Hours = 60 minutes
60 minutes * 24 hours = 1440 Minutes in a day
1440 daily minutes * 30 days = 43200 minutes in a month
Guessing an average song is 3.5 minutes (I have no idea but its a start)
43,200 / 3.5 = 12,342 songs per month
12,342 songs /30 days = 411 songs a day
If you listened to 411 songs in a day your sub could only pay the artist .0007 cents a song AND the streaming service would get nothing. Imagine a 24 hour retail location that uses a streaming service for background music.
Ok, listening 24/7 isn't representative of an average customer so lets assume you listen to streaming music an average of 4 hours a day.
4 hours * 60 minutes/hour = 240 minutes
240 minutes a day * 30 days = 7200 minutes
7200 minutes / 3.5 minute average song = 2057 songs a month
2057 songs a month / 30 days = ~68 songs a day
From above your subscription of $9/mo is .30 a day
If you listened to 68 songs a day your sub could only pay the artist .0044 per stream AND the streaming service gets nothing.
NOW... many people think the artist should get paid more but doesn't want to pay high sub costs, this dog won't hunt. If we factor in .01 per stream for artists or copyright holders:
@ 4 hours a day you will listen to 68 songs, costing the service .68 /day in artist fees.
.68 * 30 days = $20.40/month for the streaming service to break even.
Lets say the streaming service needs a 50% margin to operate = $ 40.80 a month subscription.
Are you willing to pay $ 40.80 a month so that artists can get .01 per stream? Didn't think so.
If we apply this math to 24/7 which a streaming company must consider a percentage of its customers do:
@ 24 hours a day you will listen to 411 songs per day, costing the service $4.11 /day in artist fees.
4.11 * 30 days = $123.30/month for the streaming service to break even. This is the maximum amount you could cost a steaming service per month.
Again, figuring in a 50% margin for the streaming service that is $246.60 a month to pay artists .01 per stream, will you pay that subscription cost? Didn't think so.
Unless my math is wrong,
and please check it, quit complaining about artist compensation unless you are willing to buck up!