Streaming Music Is Drying Up Streaming Revenue


See on Scoop.itRule 4081

“The New York Times reports that 1.5 million Pandora plays translate into a measly $1,652.74.  On Spotify, 131,000 plays last year netted just $547.71, or an average of 0.42 cent per play.  For the sale of a 99 cent mp3, an artist might make 7-10 cents after appropriate deductions to other earning parties, such as the record label.  So 1.5 million sold mp3s would net an artist $150,000 before taxes if they received the upper end of this projection.”



MizWalidah‘s insight:

"Donald S. Passman, a known music lawyer isn’t too worried about this switch and dwindling of revenue streams, “Artists didn’t make big money from CDs when they were introduced, either, they were a specialty thing and had a lower royalty rate.  Then as it became mainstream, the royalties went up, and that’s what will happen here.”


I have my suspicions that streaming will not follow the trajectory of CDs, as if CD or LP sales royalties ever showed to be any sizable check for the artis; unless the artist wint platinum or above. What is apparent but too few are saying is that streaming services are in cohoots with big industry and the game plan has not changed infavor of the artist, because that has never been good business for the non-artist. New business models for the independent will mean overhauling how we understand the creation, distribution and more importantly, fan engagement As it pertains to the music ethos. But as long as business is designed with the nonartist in mind, then thinking outside of the box may beno more a reality than understanding the box we are in, artist and fans alike.


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