Record Labels Make Most Profit From Streaming Revenues
The topic of revenue from streaming in the music industry has been a sensitive one for some time, as some artists have gone so far as to completely removing their music from the platform altogether. In early November 2014, EDM.com reported that Avicii’s hit single “Wake Me Up” reached a whopping 168 million streams, yet only earned a little over $12,000. While various studies and extensive data prove that music sales are down and streaming is the new method of consumption, it has become clear that musicians are receiving little profit.
Tech Dirt reported that record labels receive around 45% of total streaming revenue from Deezer and Spotify, while artists receive 6-7%. Streaming platforms follow behind record labels, receiving about 20% of streaming revenue. Taxes take away a little over 16% and 10% goes to the songwriters/publishers. The musicians are making the least amount of profit across the board. Overall, these numbers raise of the question of who is to blame for artists making little to no profit off their music. People have blamed streaming services for the lack of revenue earned, yet it seems we should be blaming major record labels for failure of paying the artist.
[H/T: Tech Dirt]
Cover photo via Music Clout