In a recent digital exchange that has music enthusiasts buzzing, Julian Klymochko, the CEO of Accelerate, raised an intriguing possibility surrounding music royalties on Spotify Technology SA (NYSE:SPOT), only to have its founder and chief debunk it.
What happened: Citing a JPMorgan report, Klymochko tweeted, “According to JPMorgan, if someone uploaded their own 30-second track to Spotify, and then programmed their phone to listen to it on repeat 24 hours a day, they would receive $1,200 a month in royalties.”
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The claim, which came from an analysis conducted by JPMorgan, as reported by the Financial Times last week, suggests that the royalty structure of Spotify could be manipulated by artists — or even regular users — to gain significant monthly revenue through repeat plays of short tracks.
However, the Swedish music streaming giant’s CEO was quick to counter ...