The biggest knock against streaming music services is the minuscule payouts for artists. That may change now. From Music Business Worldwide:
The major record companies have agreed a new deal with a powerful artist body in the US, whose members will now receive more benefits – and very possibly more cash – from label streaming royalties.
SAG-AFTRA represents around 160,000 members, including DJs and recording artists in addition to actors, announcers, broadcast journalists, dancers, news writers, TV presenters and voiceover artists.
The body’s members have just voted to ratify a new National Code of Fair Practice for Sound Recordings (Sound Recordings Code) for online streaming and non-permanent digital downloads.
This covers money generated for performers outside the US, with particular allowances for label contributions to artists’ Health and Retirement (H&R) savings.
The deal has been agreed with members of the record industry including Sony Music Entertainment, affiliates of Warner Music Group, Universal Music Group, Capitol Records LLC and Hollywood Records Inc.