The Truth About Streaming: It Pays Labels A Lot, They Don’t Pay Musicians

Musicians, it’s time to stop hating streaming services, and here’s why. Troy Carter, one of the world’s most powerful artist managers (John Legend, Meghan Trainor, and previously Lady Gaga) just busted some myths with four reasons streaming is the future of music, not the end.

  1. Streaming Will Earn Artists A Lot With Enough Users – Royalty payouts from streaming might seem small now, but that’s because it’s very new. Eventually as more listeners sign-up, the payouts could match the amount artists made at the height of the $16 CD era.
  2. The Alternative Is Piracy – If music isn’t easily accessible for free with ads or through a subscription, people will just steal it and then artists earn nothing.
  3. Labels Are Hoarding The Royalties – Services like Spotify and Apple Music pay more than 70% of what they earn to the labels, and most of the rest covers expenses of running the apps. The problem is that the labels push artists into exploitative record deals where they only get a tiny share of the royalties, and the labels keep the rest.
  4. The Big Money’s Always Been In Touring And Merchandise – Labels have always screwed artists out of recorded music dollars. Artists should think of streaming as a way to get more famous, and sell more concert tickets and t-shirts.

Basically artists who are mad about streaming should demand better deals from their labels, remember the alternative is getting their work stolen, be patient, and tour. CD sales didn’t get huge overnight either. Once more people realize how amazing it is to be able listen to any song they want, the money will come.

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Here’s the full-video of Troy Carter’s smart perspective on streaming