Music streaming services pay musicians so little that even the boss of Universal thinks something needs to change.
Do Music Streaming Services Help or Hurt Artists? | The Business of Life
More of your money should go to the people making the music, says Lucian Grainge, chairman/CEO of Universal Music Group, an irony not lost on the artists who have enjoyed relationships with labels for years. Clearly, something needs to change in the music industry. Labels and streaming services need music, and musicians need to get paid to make it. So why is it so hard to please everyone?
“Artists often make deals that entitle publishers and other parties to half or more of the royalties. So no matter what the platforms do to pay more, artists still only receive a percentage of that payout. Addressing the inequality in royalty payments for streaming music will require transforming the entire music industry ecosystem — from label agreements to publishing deals to ownership splits and even the definition of ‘artist’ itself,” Dr. Brandon Elliott, professor of music and music business at Moorpark College, told Lifewire via email.
In most cases, the record labels get the biggest cut. They make money from the sale of CDs and vinyl, and they charge the music streaming services for the right to use their music. The artists who created the music get a cut, depending on their contract. Often, signing with a label also means that the artist gives up the copyright to their recordings.
