this post was submitted on 04 Feb 2024
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A Boring Dystopia
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Usually the one doing the cover has to pay the original songwriter. That can be done by splitting the royalties or "buying" the rights to cover upfront, depending on the options the rightholders give you. For Spotify it doesn't matter, they pay exactly the same in theory.
In praxis Spotify often has special deals with big record labels, so covers technically make them more money since they only have to pay the standard cut to the artist.