Snacks
Ye

Kanye goes direct to consumer with his new album, as artists’ streaming frustration grows

Snacks / Thursday, February 24, 2022
This new Kanye album is fire [Photodisc via Getty Images]
This new Kanye album is fire [Photodisc via Getty Images]

Yeezy taught me… Kanye West isn't afraid to be vocal, whether it’s about his personal life or his moves to take on an "oppressive" music industry. The artist now known by “‘Ye’” live-streamed a “Donda Experience” event on Tuesday to promote his new “Donda 2” album. Ye’s making the record available exclusively on a physical $200 “Stem Player” device (think: a new-age iPod that looks like a smoke detector). Why: Ye wants to bypass streaming platforms like Apple, Amazon, Spotify, and YouTube. Kanye also tried to skip those streamers with his launch event:

  • Ye originally said the event would stream only at IMAX theaters, and later only on the Stem site. But ultimately it streamed free on YouTube and Amazon’s Twitch (awk).
  • The original Donda set a streaming record for Apple Music last year when it got 60M streams on day #1. Kanye says he turned down $100M from Apple for “Donda 2.”

The revolution will be streamed… but it’s less certain where. Many musicians have criticized streaming platforms for their payout structures: artists reportedly earn only about 10% of streaming revenue, so they have to hit 1M streams just to pocket $5K on Spotify, Apple, or Amazon. Several stars have attempted to ditch major platforms in a push to better control their earnings:

  • Beyoncé made her breakthrough 2016 album “Lemonade” exclusive to Tidal, a platform formerly co-owned by her husband, Jay-Z, and his frenemy Kanye. But Tidal never caught on, and last year Square bought it.
  • Taylor Swift has shunned both Apple Music and Spotify at various times, and re-recorded her “Red” album to claim streaming bucks back from labels.

Habit platforms are sticky… It’s one thing to fight streamer payouts, but another to fight listener habits. Taylor, Kanye, and Beyoncé can afford to ditch Spotify or Apple temporarily to fight for better terms. But they’ve all returned to where the ears and playlists are: Spotify and Apple have a combined global market share of more than 50%, but they’re not invincible. Example: Spotify shares fell 6% in the days after Neil Young jumped ship in protest of Joe Rogan’s vax misinfo, and they still haven’t recovered.

Get Your News

Subscribe and thrive

Snacks provides fresh takes on the financial news you need to start your day. Chartr provides data visualizations on business, entertainment, and society. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Latest Stories

Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate, including Robinhood Markets, Inc., Robinhood Financial LLC, Robinhood Securities, LLC, Robinhood Crypto, LLC, or Robinhood Money, LLC.