Music artists deserve 'fair share' of streaming money, say MPs

Compared to their record labels, some of the most successful music artists only receive small percentage of money made from streaming, but now there are calls for that to change.

A group of politicians say they want a "complete reset" so artists are given a "fair share" of the £736.5million that UK record labels make from streaming.

In a report, MPs (Members of Parliament) said money earned should be split 50/50, instead of the current rate, where musicians receive about 16%.

"While streaming has brought significant profits to the recorded music industry, the talent behind it - performers, songwriters and composers - are losing out," said Julian Knight, MP.

How do music stars get paid at the moment?

Currently, the big streaming sites pay less than a penny per play. YouTube pays the least - about £0.00052 (or 0.05 pence) per stream, Apple Music pays about £0.0059 and for Spotify it's somewhere between £0.002 and £0.0038.

Imagine if you got that for helping out at home!? It would mean doing at least 500 chores before you earned £1 in pocket money.

All of that money from music streams goes to something called rights-holders, that covers everything from massive record companies to artists who release their own music. That money is then divided up between everyone involved in making the record.

Often, the recording artist will only receive about 13 - 16% of the money made, with labels and publishers keeping the rest.

Artists who release their own music, or who work with independent labels and distribution companies, usually earn more.

A survey by the music writers association, Ivors Academy and Musicians' Union found that in 2019, 82% of professional musicians made less than £200 from streaming, whilst only 7% made more than £1,000.

What are musicians saying?

Mercury Prize nominee Nadine Shah said she had considered giving up music because earning a living was so difficult

Mercury Prize nominee Nadine Shah told the committee she had been forced to move back in with her parents because "earnings from my streaming are not significant enough".

Pop songwriter Fiona Bevan revealed she'd earned just £100 for a track on Kylie Minogue's number one album, Disco. "Right now, hit songwriters are driving Ubers," she told MPs. "It's quite shameful."

What are the record labels saying?

Currently artists receive 50% of money, called royalties, if their music is used on TV or played on the radio.

But three major music labels - Sony, Universal and Warner Music - said that streaming can't be compared to radio or TV.

"Streaming is 24-7 in every country in the world, you can listen to the greatest record store ever - it's not radio, it's on-demand," said David Joseph, CEO of Universal Music UK.

Meanwhile, the BPI, which represents the UK recorded music industry said streaming was "enabling more artists than ever" to earn money "long-term".

With 2,000 artists set to achieve 10 million streams this year, the equivalent of selling 10,000 CDs, or making about £29,000, the BPI said that changing the current system could damage investment in new music.

BPI Chief, Geoff Taylor said: "When considering this report, the Government also needs to consider the vital role that labels play as the leading investors into artists' careers, with investment in artists by record labels growing year-on-year."

Ed Sheeran is currently the most-streamed artist in the UK, with his comeback single Bad Habits

So what have politicians said?

The committee recommended that the government pass laws to give performers the right to an equal share of streaming money.

MPs also said that the current model makes it harder for new artists to earn a living, compared to well-known musicians, such as Queen or Abba, who have been successful for many years and get streamed all the time.

Figures released yesterday showed that just 33% of music streamed in the US this year was new music, with older songs dominating people's listening choices.

Music used on YouTube and TikTok

MPs also said they were concerned about YouTube's dominance; 51% of all music streaming happens on YouTube but the platform only contributes to 7% of money made by the music industry.

They warned that the ability to upload music to YouTube and TikTok without licensing it from record labels is "unfair".

The committee's report said streaming had "undoubtedly helped save the music industry" after years of illegal downloads, "but it is clear that what has been saved does not work for everyone".

Now supporters are encouraging the government to make changes and say the "landmark" report could "fundamentally improve" the money earned by thousands of musicians.