As of 2023, juggernaut platforms Spotify and Apple Music pay out approximately 0.003 and 0.01 cents per stream, respectively.
Experts say the music streaming industry needs to seriously consider a more equitable way forward for artist compensation, as the current model is certainly causing a lot of discomfort to a large majority of working artists.
Studies have shown that more than 80% of Australians stream audio and visual content and have access to discovery features, yet only 41% find new music and acts on the likes of Spotify and YouTube.
A 2022 study from UK-based charity Help Musicians found that 90% of musicians are worried that they won’t be able to pay the bills or afford food for themselves.
A potential reason why these arguments are becoming more commonplace in the modern day is due to the fact that the music industry is facing a current boom. According to an article in The Conversation, Universal Music Group’s shares surged after its US$40 billion flotation back in September of 2021.
That same article notes that in the UK, 62% of artists made no more than 20,000 pounds in the year of 2019.
But the problem is slightly more complex than just simply being Spotify’s unwillingness to give artists what they’re deemed to be owed immediately. Benjamin Morgan, a media, film and journalism lecturer at Monash University, states that the numerous different entities at play make it difficult to pin the problem on just one culprit.
“There’s obviously many things about streaming companies and record labels, concert promotors that get very powerful, we need to keep an eye on that”
“The fights that people are picking here ultimately benefit the most wealthy stakeholders”.
Leading economic analyst for the U.S music industry Will Page believes the current model is successful, yet more can be done to ensure fairness in royalty distribution.
“We should always be looking to make the distribution of money fairer for artists, songwriters and producers alike.”
The current Australian government is now even considering initiatives that would see more focus being moved onto local Australian acts.
Federal arts minister Tony Burke believes the Spotify and Apple Music algorithms could be manipulated to direct more Australian musicians into people’s recommended sections.
“Getting inside those algorithms, and getting a better deal for Australian music, will make a huge difference for Australian artists.”
Morgan emphasises the need for a more balanced, multi-faceted conversation that considers all perspectives in order to figure out a proposal that satisfies the needs of everybody.
“There’s winners and losers in the economy, so the idea of making it something that everyone’s going to be satisfied with, I think that’s an ideal to chase”.
He also states that users need to be much more weary of their habits when using these streaming services, as they could inadvertently be contributing to the issue that they are currently vehemently fighting against.
“If consumption doesn’t change, (the money) all goes to the superstars and the most powerful shareholders in the market anyway”.
PRIMARY SOURCES
Name: Benjamin Morgan
Email: ben.morgan@monash.edu
SECONDARY SOURCES
Eliezer C (8 September 2022) ‘Where Are Australians Discovering New Music?’, The Music Network, accessed 21 April 2023.
Help Musicians (14 November 2022) ‘Professional musicians facing multiple pressures this winter-with half believing they may have to leave the industry’, Help Musicians, accessed 21 April 2023.
Mullen M (14 February 2023) Inside the fight to fix streaming: ‘“It’s absolutely, fundamentally broken. Some people are getting paid an awful lot of money, and no one else is getting anything”’, MusicRadar, accessed 21 April 2023.
White A (29 September 2021) ‘The music industry is booming and can afford to give artists a fairer deal ’, The Conversation, accessed 21 April 2023.
Quinn K and Crowe D (2 February 2023) ‘Hey Spotify, the Australian government could be coming for you next’, The Sydney Morning Herald, accessed 21 April 2023.
Dan Will Review 