I’ll Say It Again, Artists: Your Royalty Fight is NOT with Spotify or other Streaming Services. It’s with Your Record Label.

It has become very, very fashionable to bitch about the low payouts artists are receiving from streaming music services like Spotify, Rdio and Pandora. But let’s pull back the curtain, shall we? This graph is based on an audit done in France.

Streaming revenue

 

The rates which streaming music services are negotiated by labels. Note where the revenue flows.

  • Labels: 45.6%
  • The platform (i.e. the streaming music company): 20%
  • Taxes:  16.7%
  • Songwriters and music publishers: 10%
  • The artist: 6.8%

If you take out the 20% owed to the platform and the 16.7% that goes to taxes, the record label takes 73.1% of the revenue.

Wow. What’s wrong with this picture? Pando Daily takes a great look at the situation here.

Alan Cross

is an internationally known broadcaster, interviewer, writer, consultant, blogger and speaker. In his 30+ years in the music business, Alan has interviewed the biggest names in rock, from David Bowie and U2 to Pearl Jam and the Foo Fighters. He’s also known as a musicologist and documentarian through programs like The Ongoing History of New Music.

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