see my article above and this one for insight. http://www.youredm.com/2017/01/18/orfium-talks-soundcloud-monetization-future-streaming/
Streaming is now the #1 way that Americans consume music. How will you effectively increase the royalties that artists receive from streaming while keeping Orfium profitable? You pledge larger payouts, but SoundCloud pays a fraction of what Orfium does and has yet to make any money.
A lot of people have this idea that streaming and/or music platforms cannot be profitable and pay artists well at the same time but this just isn’t true. I think maybe that is just what other platforms want everyone to think so they can get away with paying lower royalties. SoundCloud’s reasons for not making money is its upside-down business model that charges artists rather than monetizing their music. In addition, Orfium offers multiple revenue streams that neither Spotify nor SoundCloud has, such as digital download sales, licensing, publishing, and Facebook and YouTube copyright detection monetization. I also have a hunch that Spotify spends a lot of money on growth and/or substantial advances for major label content which is why they have not yet turned a profit. I bet BandCamp in contrast is profitable because it appears they grew their site organically, from the bottom up without making major advances, and kept unnecessary overhead expenses down. Just based on the Facebook and YouTube rights management revenue streams alone I expect that Orfium will actually be cashflow positive and financially sustainable before the end of 2017, which is a huge because it puts time on our side and allows us to remain independent of investor influences and stay true to the mission.
Another consideration is that music platforms in general fall under the general category of marketplaces, just like Amazon and Ebay, except only dealing in music. Ebay operates on a 10% sales cut and Amazon takes around 15% not including fulfillment fees, and the only real difference between operating a marketplace like these versus a music marketplace is the higher bandwidth incurred in streaming music. However bandwidth costs are really not that high and are dropping exponentially. My internet speed today is about 100 times faster for the same cost as I was paying five years ago. Therefore in the long-run I don’t see any reason to indicate why a music marketplace couldn’t operate profitably on a revenue split that is closer to the standard for general ecommerce platforms.