Are Labels Taking Home the Lion’s Share of Profits From Streaming Services?
A new study suggests that musicians frustrated with the low payouts from streaming services should redirect their frustrations toward their labels, not platforms like Spotify.
The study – conducted by Ernst & Young for the French music trade organization, SNEP – found that of the money earned from premium accounts, labels are taking home 45.6-percent from streaming services, while 10-percent of the revenue goes to songwriters and publishers and only 6.8-percent goes to the actual artists. The report showed that streaming platforms earn about 45.6-percent of the revenue (via Music Business Worldwide).
After taxes, the gap is even greater, with labels taking home 73.1-percent, songwriters and publishers earning 16-percent and artists taking 10.9-percent of the revenue.
Take a look at a complete breakdown and charts from the report here.