FEATURE:
Stream of Consciousness
PHOTO CREDIT: @neonbrand/Unsplash
Ensuring Artists, Musicians and Songwriters Get a Bigger Slice of the Streaming Pie
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I am going to grab from a…
IN THIS PHOTO: Tom Gray, founder of the Broken Records campaign/PHOTO CREDIT: Tom Gray
Music Week article regarding some interesting news and development concerning streaming and royalties. The issue of artists being underpaid by sites like Spotify is nothing new but, at a time when artists cannot rely on touring revenue and as much merchandise money as previous years, streaming is a vital outlet! Unfortunately, there is still a disparity between the big artists and what they make – because of algorithms and streaming sites prioritising their music – and the smaller act. There is also a question as to how much money a label makes and how much is left for the musician whose music is being streamed. A new study has been revealed with some fascinating findings:
“Consumers believe artists should receive a greater share of streaming revenues, according to a new survey.
The study by YouGov, on behalf of the #BrokenRecord campaign, found that 77% thought artists are not being paid enough, while 76% felt songwriters were also underpaid.
“These statistics show, inarguably, that consumers want a fairer share of streaming income to go to artists, songwriters and musicians," said Gomez's Tom Gray (pictured), founder of the Broken Record campaign.
"The system is unethical and unsustainable and needs to be sorted out by the industry or, if necessary, via Government intervention.”
The poll also found that 83% believe most record labels are paid too much, though only 68% thought the streaming platforms are overpaid.
“It is fantastic that a strong paid-for streaming market has grown over the past 15 years and further growth is predicted for the future, in spite of Covid-19. But with increasing numbers of consumers paying a monthly subscription we must ensure that the increasing streaming profits are matched with fair payment to the creators of the music," suggested Graham Davies, CEO of The Ivors Academy, of the results.
IMAGE CREDIT: Tom Gray/#BrokenRecord
"These survey results are an important contribution to dialogue taking place in the music industry on what an equitable and progressive distribution of streaming wealth should be.”
The YouGov survey, which was conducted in August this year, also concluded that 81% of those polled would like session musicians to receive some share of streaming revenue.
“Backing musicians are usually paid a small upfront fee for playing on a track, but it is often royalty payments that keep them going and in the music business," explained Naomi Pohl, deputy general secretary of the Musicians' Union.
"Streaming doesn’t pay any royalties to these musicians, but we argue that it should; if services seek to cannibalise other listening media such as radio, then they should pay an equivalent royalty."
Welcoming the survey's findings chair of The Ivors Academy, Crispin Hunt, said he believed consumer opinion should now drive change within the biz.
“What music now needs is a dramatic reinvention of the outdated manufacturing business models that still prevail," he declared.
"Everyone in the music industry knows that streaming does not currently sustain the careers of most creators. Put simply, not enough of the streaming money paid by the consumer is trickling down to the creators who drive the value. As this YouGov poll makes clear, consumers thankfully agree”.
It is good to hear that consumers feel that artists are being short-changed and want to see a shift in the way streaming services operate. Let’s hope that this campaign develops and we get some action and evolution.
PHOTO CREDIT: @fixelgraphy/Unsplash
It is difficult to know what the solution is regarding ensuring artists get a fairer slice of pie and they get the money they deserve. Every day, I see posts online from artists who are seeing how much they get paid by streaming sites and it is shockingly low! I know labels are the ones who help get the music out and they are important, but the intrinsic value of the artist is being undermined. They are the most valuable part of the equation and, without dehumanising what they do, they are the product that is being sold. A recent report from Forbes suggests that Spotify might be in trouble regarding their value and market share and, whilst I know Spotify are not the only offender when it comes to disproportionate revenues and paying artists too little, they are the biggest player at the moment. I pay less than £10 a month for a premium service on Spotify, and I would be willing to pay double if it meant that artists were paid more! There have been suggestions how to make Spotify and other streaming services fairer. One can say that a huge kitty can be generated from all subscription payments, and all artists get the same money. Rather than labels getting most of the revenue, everything could be divided equally between all artists and labels. Would that realistically work?!
PHOTO CREDIT: @sctgrhm/Unsplash
The problem is, as this article outlines, a very small number of artists generate a vast majority of streams:
“A new report suggests 1% of artists generate 90% of all music streams, and the remaining 99% produce only 10% of plays.
The insights from US analytics firm Alpha Data have re-opened criticisms about the low royalty rates paid by streaming services.
Alpha Data, which powers Rolling Stone’s charts, noted that of the 1.6 million artists who placed their music on streaming platforms in the last 12 months, only about 16,000 got 90% of airplay.
What’s more, the top 10% of artists (that is, 160,000) accounted for 99.4% of those streams, which left 1.4 million artists desperately battling for 0.6% of streams.
Spotify doesn’t pay per stream, but rather from a royalties pool based on 65% to 70% of revenue. But it’s generally estimated that its pay-out is between $.003 and $.005 per stream.
Spotify CEO Daniel Ek estimated last year that close to 40,000 tracks were being added to the service every day, which makes the competition for noise even harder.
Last month (August), Music Business Worldwide looked at Spotify’s Q2 results of €1.89 billion in the three months to the end of June.
“We can therefore broadly assume that 52% of this money, or $1.07b, is being paid in recorded music royalties to labels and distributors, who will carry a portion of that over to their artists.
“Now, if 43,000 artists are pulling in 90% of the royalties, that means those people are getting $963 million of the $1.07 billion”.
PHOTO CREDIT: @mpumelelomacu/Unsplash
Going back to the YouGov survey, and not only does it seem like artists are being underpaid and ignored, but important contributors like session musicians and backing singers are being cut out. I guess, when we listen to songs, we never look beyond the singers or the bands; what about the session players, those providing backing vocals? Also, how much do producers in addition to those who write the songs?! There are a lot of layers to consider, so I do think that there needs to be this massive overhaul where a new model is presented. It is a shame that so many huge artists rule the roost and, because they are the commercial pull, it is their labels that win out! Even though major artists do not get as much money as they should, they are in a much better position than smaller artists and musicians/singers who do not necessarily get a credit. The public know that artists are generating streaming sites massive profits, but they are not reaping the rewards. In the most difficult year for artists in generations, I sympathise with them and it is heartaching that so many are getting buried in streaming sites and their music is either not being discovered or their popularity does not equate to adequate remuneration. If 2020 has been a year we will all want to forget, we can look ahead to next year with optimism. Live music will come back and some sense of normality will creep back in. I think one of the big topics on the agenda is streaming services and how much artists get paid and including session musicians and songwriters in the discussion.
PHOTO CREDIT: @plhnk/Unsplash
There was some positive news announced on Thursday (15th), as the Government are looking into the economics of streaming. Here is some more detail:
“Inquiry
MPs will examine what economic impact music streaming is having on artists, record labels and the sustainability of the wider music industry.
With streaming currently accounting for more than half of the global music industry’s revenue, this inquiry will look at the business models operated by platforms such as Spotify, Apple Music, Amazon Music and Google Play. Music streaming in the UK brings in more than £1 billion in revenue with 114 billion music streams in the last year, however artists can be paid as little as 13% of the income generated.
The Committee will also consider whether the government should be taking action to protect the industry from piracy in the wake of steps taken by the EU on copyright and intellectual property rights.
The inquiry is seeking the perspectives of industry experts, artists and record labels as well as streaming platforms themselves.
Terms of Reference:
The DCMS Committee is inviting written submissions to be submitted by 6pm on Monday 16 November 2020.
What are the dominant business models of platforms that offer music streaming as a service?
Have new features associated with streaming platforms, such as algorithmic curation of music or company playlists, influenced consumer habits, tastes, etc?
What has been the economic impact and long-term implications of streaming on the music industry, including for artists, record labels, record shops, etc?
How can the Government protect the industry from knock-on effects, such as increased piracy of music? Does the UK need an equivalent of the Copyright Directive?
Do alternative business models exist? How can policy favour more equitable business models?
That is a step in the right direction, but there is still a way to go - let’s hope that something good comes of the announcement by the U.K. Government! It is only right that those who make the music and bring us all such great songs should…
PHOTO CREDIT: @raduflorin/Unsplash
BE rewarded for that!