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Most major labels currently class streaming as a ‘sale’, the same as selling a physical single or album. The industry’s global revenue went up by over 54 per cent between 20, so why isn’t this growth in streaming revenue finding its way to artists? The heart of the problem lies in how streaming royalties are calculated. This is especially troublesome considering that a significant amount of money is being made from streaming it’s just not finding its way to the majority of music makers.
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It’s now estimated that artists earn an average of $0.01 per stream and need to achieve one million monthly streams to pocket a living wage.
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The dramatic shift to streaming platforms has seen the income that artists derive from royalties plummet. Artists have been fighting for a bigger slice of the pie since the early days of recorded music, but the recent dominance of streaming platforms has brought the issue into sharper focus. One of the biggest problems facing the industry right now is money.
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