
It’s hard not to feel overwhelmed by a fast-paced, ever-evolving world that seems to prioritise constant innovation and improved efficiency. Our precious attention is constantly fought for by the next viral video, another must-have phone or some controversial tweet. Amongst this noise, it is always worth questioning whether genuine progress is being made. Who is benefitting from such innovations? How can we implement worthwhile, meaningful change?
MPs from the Digital, Culture, Media & Sport Committee have launched an inquiry into the economics of the music streaming industry. With streaming via platforms like Spotify and Apple Music, it accounts for over half of the global music industry’s revenue. As a user, these streaming services are great – I pay a small amount per month for access to a never-ending catalogue of music and podcasts. This inquiry will investigate the sustainability of this market for the artists, labels and wider industry.
Streaming in the UK has generated a revenue of over a billion pounds, but artists can receive as little as 13% of this. Of course, the music industry is complicated, with so many different people needing to be paid (labels, publishers, song-writers, musicians, producers…), but the bottom line is unless you are in that top bracket of hugely successful artists, it isn’t really possible to earn a living from streams.
Algorithms might benefit platforms in maximising income from streaming but they are a blunt tool to operate in a creative industry with emerging talent risking failing the first hurdle.
DCMS Committee Chair Julian Knight MP
Spotify is simultaneously the most popular streaming service and the one that pays the least per stream (about £1 per 250-500 streams).
Calling for reform, the #BrokenRecord campaign was founded earlier this year, by musician Tom Gray.
In a YouGov survey commissioned by this campaign, it was revealed that 77% of people think that artists are not paid enough by the current way subscription fees for streaming services are distributed.
Would you pay more for your subscription if this meant more money for the artist?
Even if you would, the solution probably isn’t as simple as this. Music fans may be surprised to found out that under the current model, the subscription fee you pay does not get distributed to the music that you personally stream. As much as 70% of the money you pay could go to the owners of the rights of music you’ve never even listened to.
Despite the popularity and impact of music streaming soaring in recent years, the business models have remained pretty much stagnant for a decade. Particularly during a time like now where those who work in the arts are facing the inability to perform live, it seems like the perfect moment to question how these businesses can do more to support artists and enable them to actually make a living from their work.
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