Spotify Artist ROI - how Spotify contributes to the music business

Pre-Internet, the maximum per-album-sale revenue an artist could expect to receive was $1. Today, for a $10 album on Bandcamp, he can receive $8.50. An increase of 850%.
You're killing me. :lol:

You're bolding the 850% increase that selling your music on Bandcamp could represent, as a means to represent the greater opportunity that exists for an artist in today's market? Throughout this entire discussion you've extolled the virtues of streaming via Spotify. Purchasing music on Bandcamp stands in direct contrast to streaming music through Spotify. Even still, such a number fails to note three critical points. One, it's not yet happening in numbers large enough to impact the market. Two, it ignores the fact that very few artists sell their music for $9.99. Finally, music sold on Bandcamp is often done directly through the artist. Meaning, the various costs of production weren't shouldered by a record label, and thereby have shifted the equation with respect to what percentage of the sale price is profit.

It seems you like going by gut-feel rather than numbers...
Not at all. I was merely referencing the industry data I'm familiar with. By most estimations, there's an average increase in bandwidth of about 32% annually. What was 9PB monthly in 2008, is now 46PB monthly in 2014. Now apply that to your numbers. You said in 2008, P2P traffic accounted for 33% of internet traffic. That would mean 3PB was P2P traffic. You also said that P2P traffic accounted for 8% of traffic in 2014. That would mean 3.68PB was P2P traffic. That represents better than a 20% growth in P2P.

Even my other, more assumptive calculation is fairly logical. If one torrent site alone represents over 100,000 downloads of Taylor Swift's record, what do all torrent sites, all blogs, all P2P networks, Usenet, Dropbox, etc. represent? Let's use an artist that's more near and dear to all our hearts; Angra. Their new record has been downloaded nearly 4,000 times in two days... from a single torrent site. By the end of the weekend it will be over 5,000... from a single torrent site. How many copies do you think they're going to sell or stream? My point is, I think it's unfair to suggest piracy is "an outdated '00s thing".

Ok, so first you think your personal survey of torrent-tracker hit-counts is a better review of reality a company that surveys actual network traffic from hundreds of ISPs?
No... I think Cisco's data is (posted above). Still, based on the source of your choosing, BitTorrent represents 25% of all uploaded data.

In their 2014 report, they don't even mention storage traffic..
In fact they do. If you look at their "Explanation of Traffic Categories", they state that Dropbox qualifies as "Storage". Dropbox represented 2% of all uploaded internet traffic. It's grown 600% in three years.

If they're watching more Netflix and listening to more Spotify, there just isn't any time left to listen to torrents.
Just so we're saying the same thing, people don't listen to torrents. A torrent allows MP3s to be downloaded. So any moment someone is listening to MP3s, they may be listening to what they acquired through a torrent.

Certainly no one should be forced to sell something for less than they want to, but they may have to face the reality that in a world of nearly infinite competition, no one will be willing to pay them what they want.
That's fair. Competition does drive down price in the market. But while lower cost may benefit the consumer's wallet, they often has negative repercussions. People can shop at Wal-Mart if they wish. It's their prerogative. I simply prefer to support local businesses. And I recognize that might come off as being a bit snarky. It's honestly not meant too. I always enjoy our back and forth. I just have no interest in ensuring Daniel Elk makes a billion when Spotify IPOs. Spotify cares nothing about the music, they simply care about the valuation of their company.