Quote:
Originally Posted by lawrenceRaider
Terrestrial radio pays out 97% of money collected?
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The Performing Rights Organizations collect money of behalf of composers in the United States. BMI, ASCAP and SESAC are all non-profit organizations. They collect money from radio airplay, restaurant, nightclub and gym airplay along with television airplay. They pay out 97% of all revenues collected.
Spotify is a completely different beast. They're For Profit and due to loopholes in our laws, are granted a Compulsory License in which they can choose to pay whatever they want to pay composers and artists. The same goes for iHeartRadio, Pandora, etc.
When Spotify, a company that owns nothing, is valued at more than the entire music business, something is wrong.