Billy Bragg says labels are to blame for low royalty payments, not Spotify

Music-streaming service, Spotify have been getting a bad rep recently, finding themselves on the receiving end of much criticism from the likes of Thom Yorke due to their low royalty pay-outs. Coming out in their defence (kind of) is the ever-outspoken Billy Bragg, who says that the blame actually lies with the record labels.

In a message recently posted on Facebook, the folk singer says the low rates of payments are a result of a business model passed down through the generations. “Most artists still have contracts from the analog age”, he writes.

You can read the full post beneath:

“The problem with the business model for streaming is that most artists still have contracts from the analog age, when record companies did all the heavy lifting of physical production and distribution, so only paid artists 8%-15% royalties on average.

Those rates, carried over to the digital age, explain why artists are getting such paltry sums from Spotify. If the rates were really so bad, the rights holders – the major record companies – would be complaining. The fact that they’re continuing to sign up means they must be making good money.”