In the digital age, the music industry has been transformed by streaming platforms, but are they a boon or a bane for artists? We’ve gathered insights from a founder and a CEO to explore this complex issue. From the mixed impact of streaming platforms to the question of whether they exploit artists and hinder diversity, discover the varied opinions in our three-part series.
- Mixed Impact of Streaming Platforms
- Streaming Exploits Artists, Hinders Diversity
- Streaming’s Global Access Versus Fair Pay
Mixed Impact of Streaming Platforms
Streaming platforms like Spotify have had a mixed impact on artists in the music industry. For example, while their accessibility has helped people discover a wider variety of artists and content, the recent 1,000-play minimum policy for royalties is detrimental to emerging and niche artists.
The main issue is that the majority of an artist’s revenue comes from record labels, which take a significant cut of streaming royalties. Streaming platforms are just one part of the equation. The larger issue is the unfair distribution of royalties by labels, with artists often receiving a tiny fraction of the pie.
However, the accessibility provided by streaming has undoubtedly expanded the diversity of music available to listeners. The ability to easily discover new artists and genres has improved the music ecosystem, but this increased accessibility has also led to oversaturation, making it harder for artists to stand out.
Adarsh Benz Lal B A, Founder, OddPlug
Streaming Exploits Artists, Hinders Diversity
From my perspective as a frontman in a well-known band (TWOFEW), streaming platforms have undeniably tipped the scales toward exploitation in the music industry. They’ve dangled the carrot of accessibility and exposure, but at a steep cost. While these platforms have democratized music distribution, allowing artists to reach a global audience with a click, the financial rewards for musicians are often meager. It’s a classic bait-and-switch.
Streaming services, in essence, have become the modern-day Payola. The major labels, with their vast resources and influence, often secure preferential treatment and higher payouts, leaving independent artists and smaller labels scrambling for scraps. It’s a rigged game where the house always wins, and musicians are left holding the short end of the stick.
The accessibility of music has led to an explosion of content, which, on the surface, seems like a positive development. However, the sheer volume of music available can be overwhelming, making it harder for truly talented and unique artists to stand out. In this vast ocean of sound, quality is often sacrificed for quantity, as the pressure to constantly produce new material intensifies.
Moreover, the algorithm-driven nature of these platforms can create echo chambers, where listeners are constantly fed similar sounds, stifling the diversity and discovery of new genres and artists.
While streaming platforms have opened doors for some artists, the overall impact on the music industry has been detrimental, eroding the value of music and leaving many musicians struggling to make a sustainable living. It’s time for a fairer and more equitable model that truly values the creativity and talent of artists.
Michael Lazar, CEO, Content Author
Streaming’s Global Access Versus Fair Pay
Streaming platforms present a mix of benefits and significant challenges for artists in the music industry. On one hand, these platforms offer unprecedented access to a global audience, which has changed the game for many musicians. For independent artists, particularly, streaming provides tools to promote their music without needing a record label’s backing. I’ve seen countless up-and-coming musicians gain recognition because their tracks made it onto popular playlists on services like Spotify and Apple Music. The sheer volume of listeners you can reach is astounding, and for many, this exposure is critical for building a fan base.
However, I can’t ignore how exploitative these platforms can be, primarily due to the financial structure in place. The royalty rates are alarmingly low, meaning an artist needs millions of streams to see a fraction of earnings that could sustain a living. For example, the average payout for a stream on Spotify is around $0.004. This hardly seems fair, especially considering the amount of work and creativity that goes into producing music. Many artists who put their heart and soul into their craft are left struggling financially, which can be heartbreaking.
On top of that, the algorithms that determine what gets promoted can create a skewed playing field. The system often favors established artists who already have a significant following, making it even harder for lesser-known musicians to break through. It feels like the algorithms can trap us in cycles where new and diverse music gets overlooked simply because it doesn’t fit established patterns of what’s trending. The emphasis on quantity over quality can lead to a culture where artists are pressured to churn out content rather than focus on creating meaningful music.
In my view, the conversation around streaming platforms needs to shift. Artists deserve to receive fair compensation for their work, and there is a clear need for more transparency in how royalties are calculated. The innovation that streaming offers is exciting, but it shouldn’t come at the cost of artist welfare. Balancing the benefits of accessibility with the need for fair pay is crucial for the future of music.
Samantha Odo, Real Estate Sales Representative & Montreal Division Manager, Precondo
