As Music Streaming Grows, Royalties Slow To a Trickle
concealment sends this excerpt from the NY Times:
"Late last year, Zoe Keating, an independent musician from Northern California, provided an unusually detailed case in point. In voluminous spreadsheets posted to her Tumblr blog, she revealed the royalties she gets from various services, down to the ten-thousandth of a cent. Even for an under-the-radar artist like Ms. Keating, who describes her style as “avant cello,” the numbers painted a stark picture of what it is like to be a working musician these days. After her songs had been played more than 1.5 million times on Pandora over six months, she earned $1,652.74. On Spotify, 131,000 plays last year netted just $547.71, or an average of 0.42 cent a play. 'In certain types of music, like classical or jazz, we are condemning them to poverty if this is going to be the only way people consume music,' Ms. Keating said. ... The question dogging the music industry is whether these micropayments can add up to anything substantial. 'No artist will be able to survive to be professionals except those who have a significant live business, and that’s very few,' said Hartwig Masuch, chief executive of BMG Rights Management."
Is negotiating a higher price not possible?
Every time there is a change, every time there is something new, every time there is a shift, the publishers find a way to twist the numbers so artists get an even smaller cut of the profits.
0.42 cents - $0.0042.
Half a cent per play.
And the worms ate into his brain.
I have a hard time getting worked up about their dire predictions. Let's pretend the worst comes to pass; as a consumer, the downside for me is that the crap being produced is even less varied than previously. If that's really a problem, then a need will develop for more interesting music, and inevitably, someone will address that need.
These "artists" are not owed a living. They are not exempt from capitalism because of their chosen profession.
Mod me down with all of your hatred and your journey towards the dark side will be complete!
I'm surprised that an Avant Cello musician isn't pulling in the coin
The royalty model is screwed, old, antiquated and invites corruptions from many sources.
Provide your music free to the world and charge for live performance.
Your free music is your very best promotion.
Musicians now have the power to control their own destinies on a level playing field. The cream will rise and the crap will fall, thus guaranteeing much better entertainment than the music industry would provide when it was relevant. If your "avant cello" music doesn't bring crowds to performances, you are either performing at the wrong venue , or perhaps you should practice. Perhaps targeting your promotions would be a better consideration. New York will have better opportunities to fill rooms than say, in Cleveland or Oklahoma City.
Free the music and charge for performance, you can't go wrong. It's nearly idiot proof.
*Repent!Quit Your Job!Slack Off!The World Ends Tomorrow and You May Die!
Manufacturing workers in the US lost their jobs by the millions through no fault of their own. Thats the way the economy works. We aren't condemning anyone to poverty. If you want to do nothing other than make music, you get what the job pays. You can try to do something else to earn more money, if you'd like. The economy of a free society in uncertain times is a harsh mistress.
Well.. maybe. Or Maybe not. But Definitely not sort of.
To be fair, Keating feels that the NY Times article was not very representative of her opinions; the article is a lot more down on the streaming income than she is.
Her statements on the income from online streaming are pretty neutral; she's not totally gung-ho about it (like, say, maybe Johnathan Coulton would be), but she's also not really putting it out there in a complaining, "wah wah Spotify should be giving me more money" sense.
What the AC said. I seem to remember this concept, but I don't remember which founding father said it:
"I study agriculture so that my son can study medicine or engineering, so that he can make enough money so that his son can study art and liturature".
I'm sory, but nobody ever intended artists to be rich in a meritocracy. Art is too easy. It is what you go into when you are *already* reasonably financially independent.
SJW: a person who perceives an injustice, and while correcting it, commits a greater injustice.
Do you work for Verizon?
There is music that cannot be played live, or which does not work in a live setting, and which is still worth having (as a cultural contribution to humanity, I mean)
"When I first heard Daydream Nation it quite frankly scared the living shit out of me." -- Matthew Stearns
when you hear old Jazz musicians talk about New York, they frequently reminisce about the day they got their Union card.
the tech industry is so anti-union it would make people from the 50s blush.
so basically thats the end of music. except for auto-tuned horse shit puked out by quasi strippers who can't sing.
Truly, this is the Triumph of the Nerds.
I am not really surprised. It looks like the amount of offer in music grows with time. There is more directors and composers than before. According to [1], there are 2.5 more music director and composer than 3 years ago while the number of musician appears to have decrease by roughly 10% in the same time. Since 99, it went from 52K people to 67K people. So there are 15% more people to pay. Meanwhile the US population only increase 12% [2].
I do not think the average entertainement of famillies changed a lot but if anything the music budget went down. So I am really not surprised.
Moreover, I feel like Internet concentrated music interest on a smaller number of artists which performs better than anybody else for no good reason. I mean gangnam style from psy shipped more than 6 millions albums in not even a year [3].
I do not know the artist that is speaking and I never listen to her music. But she is a cello artist which is not a popular style. So of course making money out of it is difficult. Yet her income increased according to her own numbers [4].
The real numbers we lack are the numbers from 10 or 15 years ago. How much money did an independent artist make in the 90's ? Is it really worse in 2013? (I ma not saying it is not, I am asking a real question)
[1] http://money.futureofmusic.org/how-many-musicians-are-there/
[2] http://en.wikipedia.org/wiki/Demographics_of_the_United_States
[3] http://en.wikipedia.org/wiki/Gangnam_Style
[4] https://docs.google.com/spreadsheet/ccc?key=0AkasqHkVRM1OdGhjdExSMzYyMXFZUkZNSUJrY3MwNXc&pli=1#gid=0
As I've posted a couple times [I'm a fan so feel somewhat compelled to clarify that she's not really complaining (I have no further affiliation with her her)], Keating's views aren't well-reflected in the article and she's a lot less negative on the streaming model than the article seems to suggest. The vibe I've gotten is much more of a "here are numbers so you can have more intelligent conversations about things like changes in federal licensing regulations", and pick up basically no "wah wah wah Spotify should give me more money".
As video equipment explodes in variety and lower cost, and Joe Schmoe gets an idea for a "killer you-tube" video — or a wedding videographer edits last weeks video — I'm constantly struck by the complete lack of options for the DIY cinematographer.
When you post something on YouTube with a musician's music, you get the take-down; yet, people persist in trying it.
So, why hasn't the RIAA, who *supposedly* represents the better interests of content providers, come up with a licensing plan that would enable the would-be Spielberg to legally use music in the production of their comedy/sci-fi/drama/whatever video?
I've talked to a *lot* of people who don't keep up on copyright/patent/trademark issues, and overwhelmingly they say they wouldn't mind paying $25—or more—to license a song for their video. Baby showers, weddings, and other home-made content are ripe for a balance of producer and user, yet the music industry thinks suing people will solve their problems.
Dammit, we live in an age where setting up a system of home-user licensing commercial music should be easy. Not only that, but the mechanism for indie artists to profit from this system should be relatively easy to set up!
Why is this not happening?
Me, I'm constantly improving what was done, producing more and supporting those consumers.
And the artists aren't?
IMHO, Zoe Keating and musicians with the same attitude are the patent trolls of the music industry.
"As the artist featured in this NYTimes article, I feel horribly misrepresented and I have to straighten out a few things. ... But I'm truthfully, extremely happy and thankful, exactly where I am right now. ... I'm not against streaming by any means. I've put my music wherever someone might hear it; including onto filesharing sites (gasp)."
I have been listening to the same 20 songs for 5 years.
Congratulations, you appear to be perfectly qualified to work as program director for any contemporary commercial music-playing radio station. Now if you can just get that down to 15 or even 10 songs, your future with Clear Channel seems assured.
http://www.basicincome.org/bien/aboutbasicincome.html
"A basic income is an income unconditionally granted to all on an individual basis, without means test or work requirement. It is a form of minimum income guarantee that differs from those that now exist in various European countries in three important ways:
* it is being paid to individuals rather than households;
* it is paid irrespective of any income from other sources;
* it is paid without requiring the performance of any work or the willingness to accept a job if offered.
Liberty and equality, efficiency and community, common ownership of the Earth and equal sharing in the benefits of technical progress, the flexibility of the labour market and the dignity of the poor, the fight against inhumane working conditions, against the desertification of the countryside and against interregional inequalities, the viability of cooperatives and the promotion of adult education, autonomy from bosses, husbands and bureaucrats, have all been invoked in its favour.
But it is the inability to tackle unemployment with conventional means that has led in the last decade or so to the idea being taken seriously throughout Europe by a growing number of scholars and organizations. Social policy and economic policy can no longer be conceived separately, and basic income is increasingly viewed as the only viable way of reconciling two of their respective central objectives: poverty relief and full employment.
There is a wide variety of proposals around. They differ according to the amounts involved, the source of funding, the nature and size of the reductions in other transfers, and along many other dimensions. As far as short-term proposals are concerned, however, the current discussion is focusing increasingly on so-called partial basic income schemes which would not be full substitutes for present guaranteed income schemes but would provide a low - and slowly increasing - basis to which other incomes, including the remaining social security benefits and means-tested guaranteed income supplements, could be added.
Many prominent European social scientists have now come out in favour of basic income - among them two Nobel laureates in economics. In a few countries some major politicians, including from parties in government, are also beginning to stick their necks out in support of it. At the same time, the relevant literature - on the economic, ethical, political and legal aspects - is gradually expanding and those promoting the idea, or just interested in it, in various European countries and across the world have started organizing into an active network. "
See also:
http://www.beyondajoblessrecovery.org/2009/11/16/can-unions-and-strikes-still-make-a-difference/index.html
"What good is it to get more money and more benefits for fewer and fewer remaining workers while they wait for their own jobs to be lost to automation and improved design? Yet, this has been the strategy of most unions for many years. The failure of the US American automakers in Detroit shows how, in the long run, unions creating private welfare states within individual corporations does not work well anymore for union members or anyone else in society these days. The companies become less competitive relative to other companies that pay less and embrace automation and better design, and so they fail, taking all the union jobs with them.
We are possibly past the point where union actions related to single companies make much sense. If unions are to have any major role in the future, it may likely be as part of larger efforts to rethink the underlying basis of our economy and society, like by somehow being part of a national effort for a basic income, or comprehensive single-payer health care reform, or reforming education, or things like that."
A 21st century issue: the irony of technologies of abundance in the hands of those still thinking in terms of scarcity.
So making music isn't working? Let me guess, you think it's limos everywhere, all the liquor & drugs you can consume, private jets from city to city, and a nonstop parade of 18 year old supermodels through your bedroom?
So the jobs are very similar! How much does an average programmer make, versus an average working musician, again? And would you take a programming job offering the same wage as a working musician, without grumbling about how little you got paid?
As opposed to the average programmer, who doesn't sit on his ass all day and plunk away on a keyboard, while demanding a ransom for his work because he knows Visual Basic? I don't think Ms. Keating suggested she wanted a "ransom" for what she put out - she's saying "this style of music distribution sucks for musicians," and she's right - it does.
Thought exercise:
Your employer calls you in and says, "you know, we're moving to a streaming model. You're going to get half a cent every time somebody uses your software, instead of a salary. And since nobody loses anything by copying it, we're going to also take the software you produced, and share it online so that customers can download it for free. Unfortunately, we can't track that usage, so you won't get paid at all for those - but it's not like you lost a sale, if the software wasn't free, they probably wouldn't have bought it anyway! But cheer up, you should be excited just to simply have the skill to be a creative computer professional with the skills to do this - the effort is its own reward!
What's that? You're upset? Why should anybody pay you a ransom every year just so you can keep the same buggy piece of shit running while making a few enhancements and playing with yourself in a bunch of useless meetings? If you want to get paid, get out there and write NEW software that will delight and amaze our customers in return for fractions of a penny per software use! You gotta HUSTLE, son!"
Think that sounds like a great way to live? Would we be justified in telling you to "shut up, you're not entitled to a living writing software, be better at it and you'll probably get paid," or would you take issue with that?
Your general attitude that the creation and performance of music isn't "work," and thus has no value or right to be compensated, Is especially delicious, given the obvious parallels to the comparative physical & mental efforts between music & programming. Do you REALLY think your boss pays you 75k/year to "show up in your cubicle 40 hours a week," regardless of what you actually produce during that time?
You misunderstand what musicians do.
And the "market" for live music is pretty limited actually.
At least for "bar" music - most people just want to hear cover bands play music they know, by "pop" bands, and they want the music to be not TOO loud, so they can converse, and not TOO aggressive, or challenging, because - frankly, it's background noise for their drinking.
Many musicians study their art in depth, working through their primary, secondary, and postsecondary education, and also attending special training on the side, then qualifying for highly competitive programs, to go to 4 year schools, often going on to get a Master's. Their equipment is not cheap. The services they need, to record, are not cheap. These musicians are not playing what 90% of people want to listen to at bars. And you might want to apply your libertarian "free market" ideals to that, and say; "well these people need to go flip burgers and wait on tables or something." But there's a significant audience of people who want to listen to those recordings, and these musicians do contribute significantly to our culture. (a great deal more than your average lying car-salesman or steroid-junky sports-star.)
So let me tell you where you can put your world's smallest violin.
These are my friends, See how they glisten. See this one shine, how he smiles in the light.
Apparently I owe Ms Keating my apology. Uploading her own works to build her fan base definitely qualifies as "getting her hustle on". As for any artist making around 40 cents for someone simply hearing their music; I would have to say that is an excessive payment and the diminished royalties should come as no surprise to anyone once whatever error that caused it was fixed. As for the misrepresentation on the part of the New York Times I will quote her on this:
"like I’m often disappointed in the press."
Lets just add that on to taxes and death as the only things certain in life.
Thank you for the clarification EvanED.
The time and effort it takes to record a single album of 10-15 songs each year is nothing close to the 2000+ hours you spend on a full-time job. Touring is where the hard work happens for a musician. The argument made down this comment thread is that recorded music by itself should not constitute a career in itself - it should only act as supplemental income. I've yet to see anyone here say that a touring musician should be unable to support themselves.
"They that can give up essential liberty to obtain a little temporary safety deserve neither liberty nor safety."
That's .40 cents, not 40 cents. Not even a half-penny per play.
But the difference is that you can make the same parallels between coding and music (I do both). You produce works-for-hire. You come in to your regular job, you get paid to produce *something*, typically specced out by someone else based on someone else's needs/ideas, etc. The equivalent of this in the music world are the studio musicians who get paid a salary (or contracted out) to perform a particular piece of music, usually composed/written by someone else, and you hear these pieces of work in commercials, movies, corporate training videos, whatever.
On the other side, you've got coders that aren't getting paid that are working on their own software, their own website, something they think that might make a million dollars or might make them zero. many programmers do this because they love to program and have no expectation of financial reward, others think this is the next google and want to be billionaires, and a whole swathe of folks in between those mentalities. I think screenwriters call this kind of work "spec" work, in that there's no paycheck in the creation, with the expectation that it might be valuable once it's complete. Same sort of deal with musicians. They write their own music, they put together a band, rehearse, and then go out and play it live. For many musicians, they do this because they love to create music and have no expectation of financial reward. Others think they're going to be the next Radiohead and will make millions and can spend the rest of their lives writing music on their own time instead of working around the 9-5 grind (and seriously, I know some folks think that musicians are lazy fuckers, but most of my bandmates all work 2 and 3 jobs leading up to tours so they have enough money to pay bills while they slog from show to show on a daily basis. It's fun, but breaking even is a good tour, much less profitable. My last tour turned a profit of about $20/person after 3 weeks on the road. It happens.) In my particular instance, I program because it's a steady paycheck, and a really nice one, at that. But that means that all my musical pursuits are basically a hobby. I'm too old to tour 9 months out of the year and then try to find a shitty part-time job for the other 3 months so I can help pay rent on whatever shithole apartment I have to share with a girlfriend of *shudder* the fucking drummer. And just try figuring out what kind of jobs you'll be hired for knowing that you'll have to quit after 3-5 months to go do another multi-month tour to support your new record you probably paid for yourself.
I like to get paid for whatever work I do. I do not create musical "works for hire", although it's true that many musicians do this for a living. I'd also compare them to the cube coder: the guys that come in for the paycheck, but you know they've already clocked out a long time ago. It's sad, really. I'm sure some genuinely love doing it, or put up with it, but just like all the programmers I know, almost every one of them has a personal project they'd rather get paid to work on and not some bullshit report generator so the executives can pat themselves on the back and give each other a nice blowjob.
It's not your fault, it's not my fault, but that's the reality.
If you were me, you'd be good lookin'. - six string samurai
You misunderstand what the rest of the world does.
You think programmers get to write fulfilling awesome pieces of code to stimulate their creativity? No... they write boring back-end database and financial software.
You think lawyers all get to smartly outwit each other in their cerebral battles in court? No... it's mostly drafting contracts from templates and doing boring papery things.
You think that doctor gets to save lives by cleverly doing differential diagnosis and finding the obscure diseases that no-one could? No... it's mostly the same snotty noses and strange genital rashes day in and day out.
I could go on, but I think the point here is that work is not glamorous for most people.
So if you have to play a pop cover in the bar to make ends meet - suck it up! Go experiment and be deep on your own time and dime. The rest of the world does too.
That's great - neither does a musician. More similarities!
Sure, it's on a subscription model. You pay them for a copy of the original CD, and then they tour around and you can buy a ticket to hear reworked versions of those songs. And they deliver it to you - sounds like a bargain.
No, they made 150 to 200 for a DAY OF WORK.
Great, so even more similarities to your job then - touring musicians will spend the night driving to their next show; when they arrive in town, they will often have a press appearance of some sort (un-paid), where they'll spend an hour or two at the local radio station, or a local record store, etc., hoping to generate a little buzz for their show later tonight. They might get to walk around town a bit, or they might not. They'll be carrying their gear into the club, setting it up, doing soundchecks, breaking everything down, loading the van up, and driving for several hours to the next gig. Plenty of audio gear will weight 50+ pounds, and they're carrying it in and out of places that are a lot less safe than your server room. You don't know much about the demands of a career in music, do you? You seem to think that it's all just "limo brings me to the red carpet, I lip sync for 15 minutes, then the blowjobs commence." There is at least as much physical labor, a shitload more discomfort, and plenty of long hours and shitty working conditions.
Only if musicians get .005 dollars for every note you listen to. And as we all know, since Amazon gets millions of users per month, EVERY web site must get millions of users per month! You're trying to be cute and dodge the point by being glib, but being glib simply makes you look stupid.
I expect you've all swarmed off by now, but in case you haven't I will hopefully either clear up some of your misconceptions.
I am not complaining about my royalties. I put my data out there to show how things work for a moderately successful unlabeled non-mainstream artist. That I am not big was exactly the point. There is little out there in the way of facts as to how regular artists actually make their livings (but lots of opinions on how they should). And as far as streaming goes, most artists are not getting royalties directly, but through a label. Those artists might not be not allowed to talk about royalty splits in their contracts, and in some cases might not even know what they are. I am my own label, and so for better or worse I can talk about these things.
In doing so, I've attracted a lot of attention from the press and that is how I ended up being interviewed by the NYTimes. The author took a snippet of our conversation and used it to his own ends. I am sure most of you have taken a critical reading class and so you must know that you shouldn't believe at face value everything you read. Most authors have a story they want to tell and they use their subjects to prove that story. If I had been more wise and had a PR handler, I would have demanded a transcript to publish at the same time as the article. Believe me, I'll do that from now on.
I was not talking about me in that quote. He asked me: Do you think income from streaming will ever replace income from sales? I remember that I said....as the number of listeners grows it will be lucrative for a mega-artist who has millions and millions of listens. I said in Spotify's case it will be even more lucrative for that mega-artist's label because they have an equity stake in the company. I said that I don't think streaming will ever be a money maker for non-mainstream genres like classical or jazz....because there just aren't enough listeners of fringe genres to reach critical mass. So, given that it takes 200 listens on Spotify to make the same money as the sale of 1 song on iTunes, I said we could be condemning these genres to poverty IF streaming is the only way people will listen to music.
Now here's the other part of that interview that was left out....as awesome as it is, I don't think streaming is the only way people will listen to music. No matter how much of a killer app Spotify is and how Daniel Ek would like it to be how "every single person on the face of this planet" listens to music, I don't think that will happen. But SINCE YOU ASKED dear interviewer, if streaming was the only way we listen to music, then yeah, the fringe could be in trouble. So what fringe artists have to keep doing do is this: make sure fans know they should express their enthusiasm for an artist's music through either direct music sales and/or attending concerts, because streaming isn't enough to live on.
That's roughly what I said. Now, do feel free to tear THAT apart, because I'm very interested in the discussion and love a good debate.
Anyhoo, there are two things miain I'd like to change about the current system....and neither of them is about getting more royalties.
1) When someone buys my music on Bandcamp, I get an email address (and an address if they purchased a physical copy). On iTunes, I get a zip code, from streaming services, I get nothing. I'd like to see music services help artists solve the problem of figuring out where their listeners are...so artists know where to tour. Controversial: who does listener data belong to? The listener, the music service, the copyright holder, some, all or none of the above?Discuss
2) I'd like to make the basic royalty calculation the same for all parties. It's not clear that is is. Also 18% of Spotify's profits that goes to labels (4% to each of the big 4 and 2% to Merlin). On a balance sheet Spotify doesn't have profits today because they're investing in growth (although I'm sure no one works for free). If you can't reverse the label equity problem, and you re