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Music streaming services are reaching listeners in new ways, but are they doing so at the expense of artists?
This is the question at the center of a debate between artists, who say they are underpaid for the use of their songs, and streaming companies, who claim to amplify the reach of new music.
Last fall, Taylor Swift pulled all her songs from Spotify following the release of her new album “1989.” And singer Aloe Blacc
wrote
in Wired that he made less than $4,000 from streams of the hit song “Wake Me Up,” which became the most-played song in Spotify’s history after its release.
“If that’s what’s now considered a streaming ‘success story,’ is it any wonder that so many songwriters are now struggling to make ends meet?” he wrote.
Spotify has defended its model, saying that it has paid more than $2 billion to artists since it began. This revenue comes from ads and from a premium paid service, in which customers pay $120 a year for no ads and premium features. Both Spotify and Google pay 70 percent of the membership fees from their paid services to record labels.
The popularity of streaming has also lowered the barrier to enter the music business for newer artists, according to Ken Parks, chief content officer at Spotify.
“With the tools that are available, they can record a song and within a matter of minutes upload it and connect with millions of people around the globe,” he said.
But some say the models are not sustainable. Multiple reports show Spotify operating at a loss since it was founded, and paying customers account for about a quarter of its listeners.
Warm up questions
- What does it mean to be a musician?
- How do people make money by making music?
- What do you know about Spotify?
- How do you get new music?
Critical thinking questions
- Who do you agree with in this story and why?
- How do music streaming services make money?
- Are streaming services fair to artists? Why or why not? What are some benefits and drawbacks for the artist?
- Create a music industry from scratch, in which the public gets access to the most music and artists are able to make a living producing music. Describe how the industry works from the perspective of a consumer, a musician, a songwriter and a music company.
