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Spotify Continued

Lesson 11 from: DIY Music Business 101

Tomas George

Spotify Continued

Lesson 11 from: DIY Music Business 101

Tomas George

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Lesson Info

11. Spotify Continued

<b>In this video, we'll continue talking about Spotify.</b>
Next Lesson: Money

Lesson Info

Spotify Continued

Hi. In this video, we're just gonna talk a little bit about Spotify. So Spotify is an online streaming music platform. Obviously, it's one of the biggest platforms out there. And a lot of people use it every single day, every single month, not only to consume music that they already love, but to discover new music as well. I often say to artists that Spotify is the playlist platform because it is nearly all of the activity that you find happens on Spotify is to do a playlist. So what I mean by playlists are, you know, just when a listener, a user or just a person who listens to music, they create playlists, but more so they actually uh rely on Spotify's algorithms to deliver new music to them in the form of like new music playlists such as Discover Weekly, which is a personalized playlist uh for every single user on Spotify based on their listening habits, what they listen to and stuff like that. And Spotify creates a playlist called Discover Weekly to deliver new music that they might...

like or music that they might like. Um that is similar to what they already listen to every single week. And Spotify knows a lot about their users, everything from how long they listen to a piece of music, you know, the engagement that they do on, on artists and stuff like that, whether they click through and save them all of the things that they've saved to the library and all of the different playlists that they've made and things that they skip through and stuff like that. They, they basically know everything about the user tastes on music and the more that users uh use the Spotify um platform, the more that Spotify knows about them. OK. So the reason I'm telling you this is because that's how people consume music. Now, now for you as an artist trying to win on Spotify is all about playlists. Now, when you're trying to get on the first playlists that can be really, really difficult, it's like really difficult to get that initial momentum. It's gonna take a lot of outreach. It's gonna take a lot of um research and finding the playlists fit your music, but it's definitely worthwhile because the thing with streaming is and this is why you can't really compare it to like sales of C DS or downloads because it's completely different. Spotify is, you know, 100 million premium subscriber base. You know, they're listening to Spotify most days, they're using Spotify most days they're relying on Spotify to deliver them new music. But you have to think about the amount of streams that a single user does on Spotify. When you multiply that by 100 million it's loads. Ok. So a lot of people talk about the low payouts of a single stream and yeah, it's low, you know, it definitely is. Um I think at this point it's like an average of $0.04 or something like that, 0.004 something like like that. But when you realize how many streams there are available, um then things, you know, start to make sense a bit. Now, many artists are making a lot of money on Spotify. I know artists who are making a lot of money on Spotify, but it took them a while to get there, like their first release maybe got a little bit of traction, maybe got one or two playlists. Um And then the second release maybe got a little bit more and that's the effect of streaming, that's the effect of content um in the digital age. It's the same on youtube, it's the same on uh Facebook, you know, the consistency of content output by a creator or a musician compounds itself over time. OK. So that's how you got to think about streaming and Spotify because the thing with sales are sales are great if you can sell music or you can sell merchandise. That's amazing. You should also do that. All of these are just different revenue streams for your music brand. But the thing with a sale is that transaction can only happen once the thing with Spotify or streaming platform is the transaction is always ongoing. So I know artists, for example, who put out their first couple of releases and they just reached out to all of the small uh independent play listers. Because if you just look on Spotify and then just type in the Spotify search and type in keywords, you'll find lots of different playlists. Some are really, really big, some of them are from brands, some of them are from Spotify themselves, which are really, really hard to get on. But if you go for the little guys, you can really build that initial momentum. And what they did was they reached out to these playlists, built that initial momentum and then Spotify's data started going OK? Cool. Well, this type of music or this song um bodes well with these type of people. So Spotify's algorithms start putting them on different playlists like new music Friday and Discover Weekly. And once that starts happening, things can really, really start to grow over an extended period of time. This is why it's generally a good idea generally for music, for independent music artists to be constantly putting out new music. When I say constantly, it doesn't mean it has to be once every week or once every month, whatever you can do consistently, you, you should do that whatever consistency means for you. If that means putting out a single every month or every two months, do that, ok? But just do it every single time and build out a release campaign for every single one again, a month ahead of time. Every single time, always reaching out to playlist, always building lists of new publications and new playlists. That might be a good fit for your music. And over time, all of this effort will accumulate and you'll get nose, you know, you'll get nos 49 out of 50 times. But that 50th when they put you on it can make a massive difference to you, your career, your brand and your fans. So anyway, that's just a few things that I wanted to say about Spotify, hope that's useful and I'll see you in the next video.

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