If you ever needed more proof that Daniel Ek is either too stupid to run a company or a fantastic con man here it is:
We7’s biggest rival is Spotify, but the level of royalties paid to artists by that service appears opaque {this is a polite way of saying artists are being screwed}, sparking speculation that some artists – such as Lady Gaga – are being underpaid for their songs {translation: ha, you are screwed if your music is on Spotify}. Swedish newspaper Expressen claimed last year that 1m plays of Lady Gaga’s hit Poker Face had earned the singer just $167 and earlier this month the British Academy of Songwriters, Composers and Authors accused Spotify of paying “tiny” amounts of money to artists.
In contrast, the payments to the music industry from We7 start with the standard streaming royalty rate as set by collection agency PRS for Music – which collects on behalf of the music publishers – which is currently 0.085p per stream or a share of advertising revenue, whichever is the highest. There is also a larger payment to the record company.Read more...