Rdio Proposes an Insulting ‘Artist Compensation Plan’…

The problem is that artists are feeling slighted by streaming services, especially as major labels, fans, and investors reap the enormous benefits. Which plants the seeds for bigger content problems ahead.

Is this the solution?  According to details reported by Billboard on Thursday, Rdio is proposing an ‘artist compensation plan’ that is essentially a modified referral program.  So, if an artist refers a new subscriber, that artist receives $10 directly from Rdio, while other royalty payment structures remain the same.  “Payments that would not be sent through record labels’ accounting systems could be large enough to spur artists to take part in the program,” the report states.  “‘The goal is to effectively match the economics of what an album sale would be,’ says the source within Rdio.”

Which basically means Rdio is saying the following to artists:


(1) Bring us a subscriber with a lifetime value that probably exceeds $120, and we’ll pay you $10.

(2) We’ll do you a favor: we won’t pay this bounty through your record label.

(3) All other payments – ie, paltry royalties on your music – will remain the same.  

(4) We get to say, ‘we’re more artist friendly than Spotify!’

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