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Digital Clinic Q&A
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01 December 2011

Starving artist

Streaming music services sound like great deals, but here’s what I don’t get: if you can listen to unlimited music for a modest monthly payment, how on earth do the musicians get paid?

Answers (1)

All-you-can-listen music services do pay artists, albeit in an unusual way. Subscription and advertising revenue (after operating costs) is divvied up based on proportional popularity. If one artist accounts for 20 per cent of total listens, for example, he gets 20 per cent of the total royalties. (Or, rather, his label does. A separate contract determines how much of this is passed on to the artist.) It’s fair, but it’s too early to tell if these services will find enough paying users to represent a serious source of income for artists. In any case, you can stream with a clear conscience.

 

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