Not splitting the atom here but thought exercise.
Economy from 1 track
Let's take Kanye - on majority of his tracks he gets 500,000,000 plays per track that's (average numbers here based on spotify stats). At $0.01 per spin that is $5,000,000 directly generated from 1 track.
Split it 80% to artist 10% to label (do you need labels anymore?), 10% platform.
Artist - $4,000,000
Label - $500,000
Platform - $500,000
Users
Spotify charges $9.99 per month. To have same cost for the user at $0.01 per spin that works out to 900 tracks per month. Average user listens much less than that per month. User will save money.
Missing
Data storage fee not accounted for but platform is compensated well and should be able to reflect this in their operating costs.
Transaction fee may not be possible at this low cost?
What am I missing?
Not splitting the atom here but thought exercise.
Economy from 1 track
Let's take Kanye - on majority of his tracks he gets 500,000,000 plays per track that's (average numbers here based on spotify stats). At $0.01 per spin that is $5,000,000 directly generated from 1 track.
Split it 80% to artist 10% to label (do you need labels anymore?), 10% platform.
Artist - $4,000,000
Label - $500,000
Platform - $500,000
Users
Spotify charges $9.99 per month. To have same cost for the user at $0.01 per spin that works out to 900 tracks per month. Average user listens much less than that per month. User will save money.
Missing
Data storage fee not accounted for but platform is compensated well and should be able to reflect this in their operating costs.
Transaction fee may not be possible at this low cost?
What am I missing?