I’ve been thinking about Spotify a lot in writing a couple articles about the service, and reading lots more. The one thing that always stuck in my mind was “if their royalty rates are that low, couldn’t a band just put Google Adsense on their own page, stream it themselves, and make about 100x more?” The answer is yes, kinda. They could, but they also need to drive traffic to that stream. So here’s what we’re gonna do…
As is plainly obvious, I haven’t been too concerned with putting ads up, but if/when I eventually do there’s a 468×60 spot to the right of the logo, a 300×300/300×250 that can go anywhere in the sidebar, a spot at the bottom of each article before the comments, and a 768×90 spot that can go at the bottom of the page. I would like to share those spots with unsigned bands.
Here’s how I envision this working: If you’re an unsigned band and want to stream an album or EP on tunelab, two of the three ad spots (while there’s four potential spots, there will be a max of three per page) on the page that has your stream are your spots for your Adsense code (if you use another ad program or just have ads you sell yourself, we can accommodate it too, we just need to approve it ahead of time). They will remain there as long as your stream is there. On the rest of the entire site, they will be in equal rotation with other ads belonging to us and/or other bands also streaming their album.
Sounds good, right? There is no data to prove it (YET) but hopefully soon we’ll have a band that has a new release they stream here and put on Spotify, promote the same, and then they can let us know exact figures as to income received from each. As a happy former customer of Adsense, I can say confidently I know which will get you more. Similar to the idea of royalty waivers for radio, we think this a fair (and possibly unprecedented) way to handle streams from unsigned bands.