This is probably why…
Have you ever felt like you weren’t being paid appropriately for your music streaming? Well it turns out you’re not alone on that one! Deals between streaming services and music distribution companies have long been affecting artists, and not for the better it seems. Distributors never asked the artists themselves for permission to stream their content, nor have they spoken with them about proper compensation. THIS is why artists aren’t making any moneystreaming, because they’re being cut out of the negotiation process. Online news blog “The Verge” recently got its hands on the 42 page contract between Spotify and Sony Music that was signed back in 2011, spelling out the details between the streaming service and the record label giant’s mega deal. Apparently Spotify pays Sony MASSIVE advances of money, to the tune of $42.5 million, to have streaming access to the vast music catalogue that Sony possesses.
“In section 4(a), Spotify agrees to pay a $25 million advance for the two years of the contract: $9 million the first year and $16 million the second, with a $17.5 million advance for the optional third year to Sony Music. The contract stipulates that the advance must be paid in installments every three months, but Spotify can recoup this money if it earns over that amount in the corresponding contract year.
But what the contract doesn’t stipulate is what Sony Music can and will do with the advance money. Does it go into a pot to be divided between Sony Music’s artists, or does the label keep it to itself? According to a music industry source, labels routinely keep advances for themselves.” – The Verge
The million dollar question seems to be…why aren’t the artists getting a piece of this?? Artists are paid fractions on the penny per stream on these services, making practically NOTHING for their music play, which is in turn making it hard for artists everywhere to make a living making music these days. The problem is not exactly an unknown issue either, you may have already heard about Taylor Swift pulling her entire music catalogue off of Spotify. The platinum artist wasn’t happy with the outcome of her streaming profits, and decided to do something about it!
Musik and Film has THOUSANDS of songs streaming from their catalogue, and has yet to see ANYTHING from our digital distributors in the form of advances, has anyone else? We’d love to hear your thoughts!
Here is the full article so you can check it out for yourself: