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Streaming royalties

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Streaming royalties

Postby Guest » Sun Feb 11, 2018 11:49 am

I heard about a young American girl singer songwriter who had a million plays on a streaming service (I think Spotify) and received $38 in royalties.
I just checked my royalty statement from PRS and a cello octet I composed - duration 18 minutes - that was released by a small classical label was streamed twice, one royalty payment was £0.0001 the other £0.0004. I read in an American business magazine that most of the staff at Spotify have salaries of about $108,000 per annum.
How did these services negotiate such low fees with the various royalty collecting agencies when the streaming services obviously make a lot of money?
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Re: Streaming royalties

Postby CS70 » Sun Feb 11, 2018 1:11 pm

Still Vibrations wrote:I heard about a young American girl singer songwriter who had a million plays on a streaming service (I think Spotify) and received $38 in royalties.
I just checked my royalty statement from PRS and a cello octet I composed - duration 18 minutes - that was released by a small classical label was streamed twice, one royalty payment was £0.0001 the other £0.0004. I read in an American business magazine that most of the staff at Spotify have salaries of about $108,000 per annum.
How did these services negotiate such low fees with the various royalty collecting agencies when the streaming services obviously make a lot of money?

The streaming services don't make any money at all. People gets paid of course, typically market rates, and the CEO gets paid more than others (but less than he would in the US.. and Spotify's in Sweden, where market rates are very different than the US, but so is the cost of living, so it makes no sense to compare absolute figures).

Streaming services _lose_ money (and a lot of it) every month unless they change the operating model, but the problem is exactly that if they were to pay artists a "reasonable" rate they would burn whatever cash they have in a week.

They will last only so long a queue of starry-eyed investors are willing to throw cash at them.

The ones which will last are the ones which are essentially subsidized by the owner company main operation: essentially Apple Music (and, if u consider it a streaming service, YouTube). And even them, once they start paying reasoable money, will be in high risk..
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Re: Streaming royalties

Postby James Perrett » Sun Feb 11, 2018 3:28 pm

You need to think of streaming as being more like radio where a single play on Radio 1 will maybe get you £100 or so for a couple of million listeners (the actual figures are out there but I haven't looked them up so I maybe slightly out).
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