Struggling Independent Artists: Challenges with Streaming Royalties

Over the past few years, streaming has completely changed the way we listen to music. While it’s made accessing our favorite tunes super easy, it’s also made things pretty tough for smaller, independent artists. Platforms like Spotify, Apple Music, and YouTube Music are major players in the industry, but they don’t all pay artists the same amount per stream. In fact, according to data from VIRPP, artists can earn as little as $0.003 per stream on Spotify.

For artists like Will Teague from Dosser, a grunge band based in Baltimore, earning a living from streaming alone is nearly impossible. In a recent interview, Teague shared that streaming revenue barely covers basic costs like bills. He still needs a day job in IT to make ends meet.

Streaming has completely changed the music industry. Instead of buying albums or downloads, we now pay a monthly fee to access millions of songs. This shift has also changed how artists get paid. Before, they earned through album sales or downloads, but now it’s all about those streams. It’s a microtransaction-based system, which means the more streams you get, the more money you earn.

But for independent artists, standing out in the crowded streaming market is tough. With so much music available, getting noticed without big promotional resources is a challenge. Streaming platforms also tend to favor major labels and artists, leaving smaller musicians with scraps in comparison. The way streaming platforms pay artists, through a pro-rata method, mainly benefits those with huge fan bases.

Jen Jacobsen from the Artist Rights Alliance is working to change that. She’s involved in drafting the Protect Working Musicians Act, which aims to allow independent artists to bargain collectively with big streaming platforms. Although the bill faces obstacles, Jacobsen believes it can bring attention to the inequalities in the music industry.

Teague and Dosser have also seen how platforms like Bandcamp can help. By selling music directly to fans, they can keep more of the profits. Bandcamp provides a sense of hope for artists struggling with low streaming payouts. However, it’s essential for artists to diversify and be on multiple platforms to reach a broader audience.

Legislation like the Music Modernization Act of 2018 has made strides in improving royalty payments, but there’s still more work to be done. Initiatives like the Protect Working Musicians Act are trying to address issues like unfair AI use in music. By protecting artists’ work from exploitation, these acts could bring a much-needed change to the music industry’s landscape.