Is Streaming the Enemy or Friend?
In the early 2000s, the era of streaming was first introduced as a means of watching videos on YouTube and listening to an artist’s radio on Pandora. Today, these services and others alike have expanded into several billion dollar companies as their consumer bases continue to grow. Subsequently, when hearing about the topic of artists not receiving enough pay, there is usually a one-sided answer. The average person making a median income would not think twice before disagreeing and bringing up artists such as Jay Z and Beyoncé. After all, if the streaming service is reeling in billions of dollars, shouldn’t the artists providing the music to them be as well?
Contrary to belief, however, this is not the case. Considering that Jay Z has a staggering net worth of $930 million, and Beyoncé following him with $355 million, it is clear that they are one of a few exceptions to this claim. In fact, Jay Z, besides being a legendary hip-hop artist, is also the owner of the streaming service known as Tidal. Moreover, his and Beyoncé's music are excluded on Spotify and Apple Music. The reason is because they already make enough money without the income made from streamings. According to the Recording Industry Association of America (RIAA), in 2017, streaming constituted for 62% of the U.S. Music Industry Revenues, while digital downloads and physicals only garnered 35% of the total revenue combined. While streaming may not hurt artists like Jay Z, Beyoncé, Taylor Swift, and Drake whom all make well over 6 figures, what about 5–10 years ago when they were just starting out? What does this mean for an up and coming artist in today’s age in the world of streaming? Although singers and songwriters alike may seem like they make a lot of revenue from their albums, the rise of streaming services such as Apple Music, Spotify, Pandora, and Google Play are contributing to the decline of revenue artists, songwriters specifically, gain from their music.
The days of rushing to Best Buy or your local record store for a physical copy of your favorite artists’ new album before it sold out are long gone. In the ‘Era of Streaming,’ as media and entertainment contributor Bill Rosenblatt noted in his article, “[the convenience of downloading music straight to your phone is far more popular than fully supporting one’s favorite artist through whole album sales]” (Rosenblatt). With streaming services such as Apple Music, Spotify, and Google Play, one only needs to pay about $10 a month to have an unlimited access to just about any artist’s music catalog. If you are a college student, the perks are even more rewarding. While I appreciate the convenience and less weight on my pockets that these streaming services provide as a college student myself, I cannot help but think about the effect that this must have on my favorite artist, J. Cole. He was not always significant in the industry, and unfortunately did not have too much control over how his music reached the world if he was under a contract. There was a time when he was putting out masses of songs into the world to be critiqued however one pleased, and sometimes even leaked for “pirating” before he could do anything about it. Fast forward to now, and similar issues still prevail. For example, when Apple Music was first launched, they planned on holding back any royalties given to artists during their 3 month free trial for new subscribers. Artists as big as Taylor Swift disagreed with this, demanding a pay for their art just as a fashion designer would want to be paid for his or her designs. Both are artists, yet there seems to be less advocacy for singers and songwriters when it comes to how much their art is worth.
With streaming services comes the decline of physical album sales. Streaming numbers are growing every year, with the most recent statistics showing that “across all the categories of streaming [paid subscriptions, digital and customized radio, and on-demand ad-supported streams] record high revenue levels were reached” (Friedlander, Figure 2). Digital album revenues alone decreased by 26% and only accounted for 19% of total industry revenues, while physicals accounted for even less at 16% (Friedlander, Figure 2). Just like that, streaming has taken over. That brings this question up: is streaming the new “pirating”? Sure, these artists are signing contracts and agreeing for their music to be accessed through these streaming services; however, streaming services have reduced the income artists can make from publishing just as piracy used to. There is a clear misunderstanding in what constitutes as valuable art and what does not. Artists are creators, and “if they cannot afford to make music who will?” (Aloe Blacc).
Streaming now rules the distribution of music in the industry today, and at the same time continues to devalue an artist’s work because he or she is no longer paid by the CD, but by the number of streams he or she gets. On average, many artists earn $6-$7 off of one single digital download, compared to $90 per one million spins on Pandora (Aloe Blacc). Nowadays, “an artist’s music will have to be streamed… 1,500 times for a whole album “sale” to be counted,” (McIntyre). This discrepancy in how artists are paid based on streamings today is hardly ever mentioned. Big names such as Jay Z are constantly brought up in arguments on whether or not artists get paid well enough, but there are other factors of their revenue as a whole that must be mentioned. For instance, when one mentions Jay Z, it is important to note the length of his career, and how his revenue no longer solely stems from what he makes from his music. In fact, any artist will attest to the fact that in order to make a great profit in the industry, their income must come in from more than one source, whether that is endorsement deals, concerts, or record labels with other artists under them. J. Cole touches upon this fact in one of his songs directed to the new generation of rappers, “never quit touring because that’s the way we eat here in this rap game.” Unfortunately, the music is not enough these days. Then again, that is to be expected when consumers are getting access to tons of $10-$20 albums at just $10 a month.
With all of this talk about streaming, one is probably wondering what changes could be made to fix the problem at hand in the industry. Although new to the streaming service game, Tidal is particularly innovative. One unique fact about them is that it is a streaming service led by artists, and big ones at that. From Jay Z to Madonna, to Kanye West and Rihanna, it is clear that Tidal is eccentric. The company’s approach to the industry is “[restoring] the value of music in the eyes (or ears) of listeners, which means making them pay for it, rather than listening for free” (Dredge). By making consumers pay an adequate amount for the music they consume, Tidal’s owners, being artists as well, are reclaiming the value of their music that they feel has been lost since the era of streaming grew so massive.
The debate over whether or not streaming services are the enemy or friend will probably continue for a while, but one thing that remains true is that there is a group a people at a disadvantage. Until the work of artists is adequately rewarded, there will always be someone benefiting more from their art than he or she should. Streaming services have caused a decline in the revenue artists receive from their music, and it will take an effort of artists, consumers, and streaming service providers together to eliminate this problem.
Works Cited
Rosenblatt, Bill. “In Music’s New Era, Streaming Rules, But Human Factors Endure.” Forbes, Forbes Magazine, 8 Apr. 2018, www.forbes.com/sites/billrosenblatt/2018/04/08/in-the-new-era-for-music-streaming-rules-but-human-factors-endure/#243a59b95472.
Friedlander, Joshua P. “News and Notes on 2017 Mid-Year RIAA Revenue Statistics.” Home — RIAA, www.riaa.com/wp-content/uploads/2017/09/RIAA-Mid-Year-2017-News-and-Notes2.pdf.
Blacc, Aloe. “Aloe Blacc: Streaming Services Need to Pay Songwriters Fairly.” Wired, Conde Nast, 3 June 2017, www.wired.com/2014/11/aloe-blacc-pay-songwriters/.
Dredge, Stuart. “Tidal: 10 Things You Need to Know.” The Guardian, Guardian News and Media, 4 Apr. 2015, www.theguardian.com/music/2015/apr/05/tidal-10-things-you-need-to-know-jay-z-madonna-music-streaming.
McIntyre, Hugh. “Now That Streaming Can Make An Album Platinum, What Counts And What Doesn’t?” Forbes, Forbes Magazine, 13 Feb. 2016, www.forbes.com/sites/hughmcintyre/2016/02/13/now-that-streaming-can-make-a-song-platinum-what-counts-and-what-doesnt/#2215793317ef.
