Spotify want lower royalty costs

Music-streaming platform, Spotify are lobbying record labels for lower rates of royalties.

The Verge are reporting that the Swedish-based company are in talks with major labels, Warner, Sony and Universal Music, about the cost of artist payment.

“These negotiations with music’s “big three” labels will likely go a long way to determining whether Spotify reaches profitability,” The Verge say.

It’s estimated that 70% of Spotify’s revenues are spent on royalties and they’re looking to reduce this.

That said, they currently only pay musicians $0.004 per play.

Spotify are looking to spend the extra money saved from royalties on improving their service for listeners and artists alike.