The NY Times Says Streaming Sticks it to Musicians

Royalties from so-called legitimate Internet streaming sites, including Pandora and Spotify, pay most musicians less than a penny on a dollar of revenue generated.

In a page one article in today’s New York Times, “As Music Streaming Grows, Artists’ Royalties Slow to a Trickle,” the paper illustrates how cellist Zoe Keating received just $1,652.74 from Pandora over six months for her songs with they played more than 1.5 million times. On Spotify, wrote the Times, Keating netted just $547.71 for 131,000 plays or 0.42 per play.

The formula makes the old days of Tin Pan Alley look pretty good for struggling song writers and recording artists.  

zoeA post on Keating’s blog, “Internet Royalty Math Makes My Brain Hurt,” documents a similar experience with Soundexchange. Her post on Tumblr, More About Data vs. Royalties,” is worth a look from anyone interested in IP rights and business. (In case you had not noticed, inventors don’t fare any better.)  

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Fans need to remember that even streaming businesses like Pandora and Spotify, as opposed to Megaupload, which pays no royalties and was shut down by authorities, may be great for their personal library but not so good for musicians trying to make a living — and we’re not talking about the Adele and Rhianna.

Some say music streaming is merely a disruptive technology for delivering content people want in a manner they desire. With sufficient volume, it has been argued, royalty payments for top names will eventually catch up to where they were. Don’t bet on it.

Illustration source: concertlivewire.com; venturebeat.com

About Bruce Berman

Independent IP observer, adviser and author.

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