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Spotify Forking $60M Over To Labels

LONDON (Hypebot) – European executives from the same major labels that have been keeping Spotify from the U.S. are singing its praises.

"Spotify is on track to become the largest single partner we have." according to Jacob Herbst, Sony Sweden's director of digital sales. "We already have several artists who receive 80% of revenue via Spotify," added Martin Glemme who holds a similar position at Universal. "An artist who draws in half a million dollars can get $200-300,000 from Spotify."

The company told Music Ally that it has paid $41 million in royalties through the end of August, a sharp rise from previous payouts.

In the previous 12-14 months beginning with it's 2008 launch, Spotify had paid just $15 million to rights holders for a total of $61 million to date from song streams in the seven European countries where it has launched.

Despite the suggestion of insiders like Glemme that the music service is good for artists, some industry observers question how much money the major labels, who also own 17-18% of Spotify, has shared with creators.

Labels are reportedly demanding big advance payments before green lighting a U.S.  launch. But no one is offering details as to how any label windfall might be shared with the people who make the music that Spotify is paying for.