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Streaming musics critics have said the tiny per song stream royalties aren't enough to support artists or recoup the sales they cannibalize.
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That is hardly surprising given that Spotify's average "per stream" royalty payout is between $0.006 and $0.0084.
At a Congressional hearing yesterday, SoundExchange announced that it would not enforce the new $500 per stream royalty rates originally scheduled to take effect on Monday, July 16th.
It's a dilemma that music rights organisations have been battling for some time: per-stream royalties are so incredibly low – a fraction of a penny – that the cost of processing them (and dividing and distributing them between the writers of the track and their respective publishers) is higher than the actual revenue.
JL: We're agreed that streaming royalties ain't gonna bring home the bacon.
Digital revenues are rising rapidly thanks to streaming royalties and legal downloads, through platforms such as iTunes.
But for a band that makes a living selling music," streaming royalties are "not at a point yet to be feasible for us".
When musicians get involved in debates about streaming royalties, a common criticism is that they are motivated by greed: rich artists grumbling about not being richer.
Funk-pop band Vulfpeck, most notably, released a 10-track album of total silence, entitled Sleepify, and told their fanbase to play it on an endless loop in order to get the band paid streaming royalties.
In the short term, artists are complaining that their streaming royalties are pitiful and that these online services seem to calculate royalties in ways that are opaque even by the black magic accounting standards of the music business.
Some artists are being screwed by their labels for streaming royalties, and others are being treated fairly: indie label group Beggars Group, for example, has a policy of sharing streaming income 50/50 with all its artists.
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