MPs To Look Into Whether Artists Are Paid Fairly For Streaming Music
It has been announced that an inquiry into the fairness of music streaming is to be launched by MPs. With many artists claiming the money they make to be 'negligible, and DCMS committee chair Julian Knight MP stating that the growth of the streaming market "cannot come at the expense of talented and lesser-known artists", it is clear that there are several prevalent issues with the system that need addressing.
Spotify pays artists between £0.002 and £0.0038 per stream, while Apple Music pays about £0.0059. YouTube pays the least - about £0.00052 (or 0.05 pence) per stream. However, this figure goes directly to the 'rights owners, which refers to anyone from the individual art, to huge record labels. It is then divided up and only then does the artists themselves receive the money. Usually, the recording artist will only keep about 13% of the revenue, with labels and publishers keeping the rest of the profit.
Alongside the issue of profit division, the inquiry will also discuss issues around algorithms, and whether new music is being pushed to the side by the dominance of big names like Ed Sheeran and Drake.
Mr Knight said: "Algorithms might benefit platforms in maximising income from streaming but they are a blunt tool to operate in a creative industry with emerging talent risking failing the first hurdle.