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Can you make money in music with streaming?

Streaming has taken over how we listen to music today. This Monday, I went around campus and asked people what they thought artists got paid per single stream from a music streaming service. I also told them the real number that music streaming services pay and got their opinion. These were the answers that i got:

 

Hector Echevarria 

How much do you think an artist get for a single stream on music streaming service? 

  •  3 Dollars

Do you think the actual number that they get is fair? 

  • No, it is not fair for the Artists at all

 

Billy Bailey 

How much do you think an artist get for a single stream on music streaming service?

  • 1 – 2 Dollars

Do you think the actual number that they get is fair?

  • No it is not fair at all

 

Kasual Owens-Feild

How much do you think an artist get for a single stream on music streaming service?

  • 2 Cents

Do you think the actual number that they get is fair?

  • Yes, because no one is forcing them to put their music on streaming services. look at Adele she didn’t put her latest album on streaming and people still bought it. people still buy digital albums.

Cole Mitchell 

How much do you think an artist get for a single stream on music streaming service?

  • 1000 streams = 10 Dollars or .01

Do you think the actual number that they get is fair?

  • No it isn’t fair to the artist

 

Andrea Marsac 

How much do you think an artist get for a single stream on music streaming service?

  • 1 cent

Do you think the actual number that they get is fair?

  • No, because Artists put a lot of work into their music and they are not getting compensated for their work. Making music is not cheap and you should be getting money back from what you made.

 

Ken Richardson

How much do you think an artist get for a single stream on music streaming service?

  • 86 cents

Do you think the actual number that they get is fair?

  • yes, if you listen to the song or artist enough then it can add up for them

 

Andy Collins 

How much do you think an artist get for a single stream on music streaming service?

  • 100 dollars

Do you think the actual number that they get is fair?

  • no, Thats bulls**t artists deserve more for their work

 

Travis Napier 

How much do you think an artist get for a single stream on music streaming service?

  • 30 cents

Do you think the actual number that they get is fair?

  • no, The artist deserves more than that

 

Greg Somers 

How much do you think an artist gets from a single stream on music streaming service?

  • .001

Do you think the actual number that they get is fair?

  • no, but it is something artists have to deal with when they are in music today

 

Blake Tobias 

How much do you think an artist gets from a single stream on music streaming service?

  • 43 cents

Do you think the actual number that they get is fair?

  • F**k no, the Artist needs more money than that

 

Digital sales have taken over physical sales of albums in recent years. In 2015, streaming accounted for 43 percent of digital downloads, almost overtaking digital album sales. In addition, subscription-based services have more users than ever. In 2015, it was reported that 68 million people were paying for a subscription service, compared to 41 million in 2014 and only 8 million in 2010. With streaming quickly becoming the primary way that people listen to music, one has to wonder how much money the artist is making per stream. Music streaming services pay between .006 and .0084 of a penny for each stream; however, this is not the artists’ final cut. If you are signed to a record label, they get the earnings directly from the streaming service. After the record label has taken their cut of the earnings, you ultimately end up with .001 in profit per stream. Let’s look at an example of an independent EDM (Electronic Dance Music) band from Australia. According to Digital Music News, in May of this year they had hit 1 Million plays on a streaming service. Luckily for the group, they had been put into one of the streaming service’s featured playlists. When they hit 1 Million plays, they released the amount of money they got from the streaming service as well as the transaction sheet for that money. Overall, the band made $4,955.90. Since they were unsigned, their overall earnings were greater from the streaming service because they did not owe a record label anything. Now, that might look like a lot of money for streaming, but let’s change the royalty rate from streaming to the Digital download rate for a single sale and see how it changes. If you take the 69 cents that a single digital download will give you as an unsigned artist and multiply it by 1 million streams you get $690,000. The amount between those two numbers is ginormous. There should not be this big of a gap between two mediums. Streaming is quickly becoming the way that we as a society listen to music. We are in a period of change between mediums, reminiscent of the transition from physical CDs to mp3s back in the early 2000’s. Looking at the information above, it is clear that there is little to no money for the average artist in streaming. This is a pressing issue for small artists because there is no way that they can make a decent living off of their profession. As a signed artist who has money on a streaming service, you need 1,117,021 plays to make the equivalent of the minimum wage; for an unsigned artist you need 180,000 plays to make the same amount. The skills that are required to make music are more valuable than the skills required to flip burgers. To change this, the CRB (Copyright Royalty Board) would have to mandate a royalty increase for streaming. I believe this increase would have to equal 25 or 50 percent of the value that is deemed for digital song downloads. Once the CRB would make this change in royalties, then all of the streaming companies would have to pay the artists the money that they deserve. If this doesn’t happen, then small artists around the country will start disappearing because their craft will become unsustainable.

 

 

Sources :

https://www.spotifyartists.com/spotify-explained/

http://www.digitalmusicnews.com/2016/05/26/band-1-million-spotify-streams-royalties/

http://www.ifpi.org/facts-and-stats.php

https://www.theguardian.com/technology/2015/apr/03/how-much-musicians-make-spotify-itunes-youtube

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