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This is actually no longer necessarily true on Spotify. Spotify now pays no royalties *at all* for a huge proportion of music on the platform, each individual *song* has to qualify for royalties before any payout. One band I know actually ended a year with Spotify claiming *they* owed Spotify money.

My assumption for why bands are on Spotify is inertia— there was a time when the proposition kinda made sense, but it does not make sense now. Some bands are pulling out already.

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