Record labels, not streaming music companies, are the ones screwing over musicians

Shawn Knight

Posts: 15,291   +192
Staff member

study spotify music revenue money record labels artists songwriters publishers

A couple of high-profile artists have caused quite a stir in the music industry as of late with claims that payouts from legal streaming music services are simply too low. They’ve often been vilified by the media and fans over such allegations but according to a new study from Ernest & Young and French record label trade group SNEP, artists are indeed getting the shaft.

The study, which set out to discover where money paid by subscribers to services like Spotify or Deezer actually goes, found that record labels take home the lion’s share of the earnings – 45.6 percent, to be exact. The platform keeps 20.8 percent, taxes account for 16.7 percent, songwriters / publishers get 10 percent and artists keep just 6.8 percent.

Strip out the platform’s share and taxes from the equation and you’re left with royalties. Of those, labels keep 73.1 percent, songwriters / publishers get 16 percent and artists earn just 10.9 percent.

Suddenly, we can see that artists are correct – they hardly make anything from streaming outfits. Granted, I realize that labels do a lot for artists but taking nearly three quarters of the royalties seems a bit excessive – especially when you consider how much the industry has changed in terms of distribution.

As such, artists should be pissed at their record labels – not streaming music providers – as they’re the ones that are pulling off the screw job.

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"As such, artists should be pissed at their record labels – not streaming music providers – as they’re the ones that are pulling off the screw job."

This also shouldn't come as a surprise to any serious aspiring artists. This has been the state of the industry from its beginnings. Artists actually make the bulk of their cash from playing live shows and selling merchandise, not selling records.
 
The flip side to this argument is that there is much talent outside of a label earning jack. Once you have made it, create your own label.
 
Yeah but, getting 23% of really screwed, is getting screwed really badly..

I love all the number games you're playing in this article. Percentages don't meant squat. They're just cute little numbers to play games with.

Why don't you actually say something in this article, like for example, "how much, (in plain dollars & cents), and artist, or group, gets paid per play.

After that, I figure most of us here can do grade school multiplication. For example, "one million t9imes zero, is still zero"!
 
Well, pretty much all I listen to is what my siblings put on and classical music, so..., not much to say here.
 
Yeah but, getting 23% of really screwed, is getting screwed really badly..

I love all the number games you're playing in this article. Percentages don't meant squat. They're just cute little numbers to play games with.

Why don't you actually say something in this article, like for example, "how much, (in plain dollars & cents), and artist, or group, gets paid per play.

After that, I figure most of us here can do grade school multiplication. For example, "one million t9imes zero, is still zero"!
Obviously the payout will vary from artist to artist, group to group depending on how much they make for their label and their popularity.
I wonder how Elvis managed to become so rich because every song of his that I ever liked I taped from my buddies, they taped from theirs and so on and so forth. We never even realized we were pirating, not that it would've worried us.
When you have some spare time on your hands do you think you could teach me some basic arithmetic, I skipped those classes when I was at school... :D
 
Years ago a few binding/publishing sites sprang up allowing budding authors to build, bind, and sell their books on line. I bought a few, one was particularly good. I'm surprised we haven't heard about similar attempts for these other artists? Might take longer to get known, but at a much more reasonable cost that the artist would have direct control over ..... no?
 
Publishers are such scam artists... If I was rich enough, I'd make a label that takes no more then 15%. Then the artists get the lion's share. I'd get rich off all of the influx of artists. Sure other labels would follow eventually but there has to be the one 'good guy' first to push the trend. The way it should have always been IMHO...
 
I'm with @davislane1 on this one. Since the start of recorded music it has ever been this way. The number of artists that have made large sums of money and have received a pittance for their efforts thanks to the publisher/manager is monumental. No wonder so many artists start(ed) their own label
 
I'm with @davislane1 on this one. Since the start of recorded music it has ever been this way. The number of artists that have made large sums of money and have received a pittance for their efforts thanks to the publisher/manager is monumental. No wonder so many artists start(ed) their own label
Assuming this is true, the fact remains streaming services are paying practically nothing, (to the artist (?)), for a song per hit.

Here's a search page on the topic: https://www.google.com/search?q=Artist gets paid 16 dolars for a million plays streaming&ie=utf-8&oe=utf-8 Like the X-Files used to say, "the truth is out there". That said, it has, "finding the truth could give you a headache", written all over it. Soldier on.
 
Some seem to be missing the point. There has been a lot of publicity lately on how streaming is screwing musicians when actually, it's the record company screwing them. Also, the songwriter/publisher should get more as that's the actual creative, intellectual property part of all this.
 
It's worth noting that these breakdowns are pertinent to those who don't own their own labels.

If you own your own label, even if the 'label' is a drawer in your desk and some USB sticks, you're not going to have that split. That said, the reason people still end up with labels is because promotion costs and lubricating the media can be a big up front cost.

But it's clear that some label artists didn't see this coming and let the labels that signed them grab most of their streaming share. It's been this way for a long time: too many people are in too big a hurry to sign -- and the music biz is filled with too many people who way all too willing to take every bit of an artist they think they can get away with.
 
Years ago a few binding/publishing sites sprang up allowing budding authors to build, bind, and sell their books on line. I bought a few, one was particularly good. I'm surprised we haven't heard about similar attempts for these other artists? Might take longer to get known, but at a much more reasonable cost that the artist would have direct control over ..... no?
Many artists sell their music directly or place it on the stream services themselves. And that way you do get to keep all the proceeds from the stream company, rather than split with anyone (besides the taxman). The problem is one of reaching one's potential audience -- so that they know you as an artist are out there (on iTunes, Spotify, All Access, and/or on your own website). There are a lot of artists but it generally costs money to work the media access. Payola is an ugly word... but...
 
Years ago a few binding/publishing sites sprang up allowing budding authors to build, bind, and sell their books on line. I bought a few, one was particularly good. I'm surprised we haven't heard about similar attempts for these other artists? Might take longer to get known, but at a much more reasonable cost that the artist would have direct control over ..... no?
Uncle Al said this, not I. Me. Whatever. It 'misquoted' us...
 
TECHSPOT STAFF

Since there's no FEEDBACK or REPORT mechanism, I can't think of any other way to tell you your comment board is messing up the quote attributions, attributing the quote to the person trying to quote someone else. If you catch my drift.

Anyhow, the COMMENT BOARD IS partially BROKEN.

cheers
 
TECHSPOT STAFF

Since there's no FEEDBACK or REPORT mechanism, I can't think of any other way to tell you your comment board is messing up the quote attributions, attributing the quote to the person trying to quote someone else. If you catch my drift.

Anyhow, the COMMENT BOARD IS partially BROKEN.

cheers
This honestly isn't the case. Quote attribution is working just fine. Report your own post if you choose, but I think the issue is one of simple inexperience with this software, on your part.
 
TECHSPOT STAFF

Since there's no FEEDBACK or REPORT mechanism, I can't think of any other way to tell you your comment board is messing up the quote attributions, attributing the quote to the person trying to quote someone else. If you catch my drift.

Anyhow, the COMMENT BOARD IS partially BROKEN.

cheers
This honestly isn't the case. Quote attribution is working just fine. Report your own post if you choose, but I think the issue is one of simple inexperience with this software, on your part.
This is me quoting you, while encapsulating my prior post inside of it. I don't see a problem with the function of the board's software..

And there certainly is a report button under the post box(es): "Edit, Delete, Report.........Reply", in that order.
 
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TECHSPOT STAFF

Since there's no FEEDBACK or REPORT mechanism, I can't think of any other way to tell you your comment board is messing up the quote attributions, attributing the quote to the person trying to quote someone else. If you catch my drift.

Anyhow, the COMMENT BOARD IS partially BROKEN.

cheers
This honestly isn't the case. Quote attribution is working just fine. Report your own post if you choose, but I think the issue is one of simple inexperience with this software, on your part.
I hit reply. I typed this. Let's see what happens.
 
Captaincranky, is that the behavior I should see when I hit reply and time those three short sentences? Note the attribution.

When I replied to user Uncle Al, it put his quote in the quote box but attributed it to my user name.

Are you really telling me that that is the desired behavior for this software?
 
Captaincranky -- MY BAD -- I get it now -- there ARE no quote attributions attached to the quotes, merely the person doing the comment. You're right, my unfamiliarity with the board led me to misinterpret what was going on.

That said, it's rather odd to see the quotes floating under someone else's attribution. I've seen a lot of community boards and have moderated on a very large one. This is unusual.

But, my bad, nonetheless.
 
TECHSPOT STAFF

Since there's no FEEDBACK or REPORT mechanism, I can't think of any other way to tell you your comment board is messing up the quote attributions, attributing the quote to the person trying to quote someone else. If you catch my drift.

Anyhow, the COMMENT BOARD IS partially BROKEN.

cheers
As captaincranky has pointed out, there is a report mechanism, however, that is for reporting spam, bad posts or other rule breaking posts. For issues with TechSpot or any of its features switch to forum mode and post the problem in the Site Feedback and Suggestions forum. The primary difference is if you post in the appropriate forum, those you are trying to reach will more likely see it and act upon it.
 
Screw the artists. Screw the record companies and screw the streaming services. They are all over paid
 
Captaincranky -- MY BAD -- I get it now -- there ARE no quote attributions attached to the quotes, merely the person doing the comment. You're right, my unfamiliarity with the board led me to misinterpret what was going on.

That said, it's rather odd to see the quotes floating under someone else's attribution. I've seen a lot of community boards and have moderated on a very large one. This is unusual.

But, my bad, nonetheless.
I think I just figured out what was throwing you off. You're most likely accustomed to "Vbulletin" software. As you most likely know, whether you're simply posting or quoting with that software, it takes you to what is in essence, another page.

With Zenforo, you stay on the same page, you simply work in the box at the bottom. This software allows you to register multiple quotes, without copying and pasting back from the new pages you would need to open in Vbulletin to perform that operation. In that respect, this software is superior to Vbulletin. If you were to hit the "more options" button, it would take you to a separate page while posting, in a format a bit similar to that which you're likely used to.

Zenforo does have an idiosyncrasy with regard to quoting, but it only pops up when you're trying to do a line by line response, in which you're copying and pasting the person you're quoting name and message number multiple times. If you forget to type in the trailing, "[/quote]", to close the passage, this software will add that automatically

That can drive you nuts, as it constantly places that which you've typed into the quote itself, and the whole message, your post included, is inside the quote box.
 
I think I just figured out what was throwing you off. You're most likely accustomed to "Vbulletin" software. As you most likely know, whether you're simply posting or quoting with that software, it takes you to what is in essence, another page.

With Zenforo, you stay on the same page, you simply work in the box at the bottom. This software allows you to register multiple quotes, without copying and pasting back from the new pages you would need to open in Vbulletin to perform that operation. In that respect, this software is superior to Vbulletin. If you were to hit the "more options" button, it would take you to a separate page while posting, in a format a bit similar to that which you're likely used to.

Zenforo does have an idiosyncrasy with regard to quoting, but it only pops up when you're trying to do a line by line response, in which you're copying and pasting the person you're quoting name and message number multiple times. If you forget to type in the trailing, "
", to close the passage, this software will add that automatically

That can drive you nuts, as it constantly places that which you've typed into the quote itself, and the whole message, your post included, is inside the quote box.[/QUOTE]
Actually, the behavior I was trying to describe was apparently anomalous behavior after all -- and not everyone may have seen it.

The board was literally posting quoted material under a legend that attributed the quote to the quoter not the quotee, if you will pardon that construction. In other words, when I quoted Uncle Al -- it ballooned Uncle Al's quote but above that it said "KS2 Problema wrote:"

However, it is definitely different today (and the formatting around the text balloons is different as well). I'm a web developer as well as a moderator elsewhere, so I'm not a naif in these matters. Now that I see how the board operates when it's operating properly (and unless the admins have tinkered it since then) what I was seeing apparently was anomalous behavior. It was certainly different than what I saw before.

And, mailpup, for sure, I should have gone to the proper forum to post a problem. (Pretty bad behavior on my part for a guy who's a moderator elsewhere, LOL.)

Thanks, guys. Whatever it was, it's not a problem now. Cheers!
 
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