In the ever-evolving music streaming landscape, how can listeners balance costs and morals when deciding on how to listen to their favourite artists?
Choosing a platform to listen to music in 2024 has been made difficult; not only by the abundance of options at audiences’ fingertips, but by also lingering concerns regarding fair compensation for artists’ work.
The growth of music streaming in the past decade has empowered artists to reach much larger audiences however, they have been short-changed when it comes to earning streaming royalties.
A common misconception about the royalties afforded to artists is that they are solely dependent on the number of streams a particular song generates. However, the royalties paid out to artists are determined by their streaming performance relative to the overall streaming revenue generated by a platform. This means that as platforms make more revenue, there is a “bigger royalties pie to share” for artists, but their individual success is not necessarily the main determining factor for the revenue they ultimately receive.
Royalty rates also change based on different countries’ “own set of payout rates”. This is due to the difference in subscription prices offered in countries across the world. For example, in America, a Spotify Student subscription costs $5.99 (R112.28) per month, while in South Africa the same student subscription costs R34.99 per month.
Many streaming platforms offer various tiers with differing price points, respectively. However, this means if you listen to the same song on a Spotify Student plan, by virtue of its lower subscription price, an artist will make less money from your stream than from a Spotify Premium subscriber.
This can pose a dilemma, especially for university students who want to best support the artists they care about, but may not be able or willing to pay a higher price for essentially the same product.
According to VIRPP, as of 2023, Tidal offers the highest average royalty rate for artists at R0.24 (as of May 3, 2024, 1 USD equals 18.54 ZAR) per stream, followed by Apple Music at R0.15 per stream. On the other hand, Spotify at R0.059 and YouTube Music at R0.037 per stream, a fraction of what Apple Music offers.
| Streaming Platform | Average Payout per Stream |
| Tidal | $0.01284 (R0.24) |
| Apple Music | $0.008 (R0.15) |
| Amazon Music | $0.00402 (R0.074) |
| Spotify | $0.00318 (R0.059) |
| YouTube Music | $0.002 (R0.037) |
| Pandora | $0.00133 (R0.025) |
| Deezer | $0.0011 (R0.020) |
Average royalty rates calculations such as these are generally accepted as accurate, but they are merely estimates and not wholly accurate representations for every platform or artist. In addition, as these companies are driven by profits, there is a tendency to promote artists that are already successful, while disincentivising those trying to make a name for themselves.
One could also argue that larger platforms compensate artists for their relatively low royalty rate by offering a larger user-base and untapped audience. However, much of their discoverability, is tied to curated playlists, based on a collected user data and algorithms. This still promotes selected artists and makes it more difficult for new artists to develop organically.
Some artists choose to circumvent larger streaming services altogether. For example, Cindy Lee’s Diamond Jubilee – a critically acclaimed psychedelic pop album released this year – is only available for free on the band’s official website and can only be streamed on YouTube.
However, the band is requesting $30 CAD (R405,71) donations for those wishing to show their support.
As a Spotify user, I feel conflicted. My personal experience using the app has been mostly positive, and I have created various playlists and discovered thousands of songs and artists I love. However, every time I open the app, part of me can’t let go of the fact that I am contributing more to the bottom-line of a large company than to the artists I listen to.
I feel it is only fair as a music consumer to pay artists what they deserve for delivering us their musical products, which – in many cases – can transcend their form as mere pieces of art into impactful feelings and memories that help us narrate our lives.
That is why I feel it is important to learn about the streaming platforms so we can make informed choices that align with our differing views and values.
For individuals wishing to support artists they care about most effectively, more direct avenues for purchasing might be preferable. For example, on platforms like Bandcamp that allow artists to self-publish and set their own prices may be the most ethical way to support artists. For buying digital copies of music, audiences also have the option to use iTunes for a more diverse catalogue.
FEATURED IMAGE: Tristan Monzeglio, 2024 Wits Vuvuzela Journalist. Photo: File/Leon Sadiki
RELATED ARTICLES:
- Wits Vuvuzela, Sydney Mavundla jazzes up Wits, April 2024
- Wits Vuvuzela, Hip-Hop gets its wings in Braam, March 2024
- Wits Vuvuzela, EDITORIAL: Kitchener’s, you will always be famous!, March 2024
