MaurosArt
The convenience of the digital age, especially with music and its various modes of access on platforms like Apple Music, Spotify, and YouTube, has altered and revolutionized the way the global population consumes the medium. The ease with which access to millions, and millions, and millions of songs is an instantaneous affair of convenience. I mean, come on! The overwhelming and over-saturated exercise of listening to any artist, at the drop of a hat, may have its benefits, as provided by major labels and streaming platforms, but, for the new emerging independent artists trying to earn a nut, they find themselves on the precipice rolling dice, vacillating on either trying to survive in the industry, or just folding the cards.
Roughly, about 80% of global music revenue is from streaming, according to sites like IFPI (International Federation of the Phonographic Industry) that monitor, track and analyze the current data. Downloads were once a major source of bread in the music industry, but have significantly dropped, most likely into an abyss, due to the prevalence of streaming platforms. I mean, why buy albums or tracks if you can subscribe, for a nominal fee, and create your own streaming playlists, and multiple varieties of them? All of this to say, the fundamentals of earning a bag of money as an artist have changed, in quite a few ugly and nasty ways.
Let’s take a look at some of these poignant points. For one, per-stream payouts are extremely low. I’m talking fractions of a cent, man. But, the devil, as always, is in the details if you look into how subscriptions whittle down the pennies for independent artists. Number two, as the world turns, revenue is unevenly distributed. But the lion’s share of profits always goes to the major labels and the top artists, of course. Then there’s the third point. Algorithms favor popularity. Yeah. No matter how you slice it, those algo’s make it harder for up-and-coming artists to even break through organically or get discovered.
So, the field is rather challenging for emerging artists. The financial viability of earning a bag is grim. Just to earn, let’s say, a $1,000 from Spotify, an artist would most likely need to have over 250,000 streams. For the little guy or gal, that is pretty unattainable without some kind of notable investment in marketing or support from a label.
Working to get discovered or gain more visibility is also a tough challenge. Think of the millions of tracks uploaded annually. With that in mind, the effort is monumental in standing out from the crowd. The major labels and their artists, cornering the market, have huge followings and take up the top tier when it comes to playlist placements and algorithm boosts, also making it harder for new artists to break through.
“These big boys play a big game, and each has the financial power to secure prime slots on playlists…”
Artists these days also have to wear many hats and need to know how to manipulate the world of social media. It’s a beast, and the dependence on social media is profound in creating success, and artists need to be ‘on the ball’ as content creators, marketers, and influencers, utilizing TikTok or Instagram for virality and engagement, because, sadly, talent or musical prowess is not enough. If they don’t see ya, don’t hear ya, don’t know ya… You don’t exist.
Another challenge is ‘the lay of the land’ on the business side of things, as many streaming platforms, coupled with distribution deals, limited ownership, or control of property rights, tend to offer little to no control over how music is promoted or even monetized. This holds true for artists who aren’t adept at contracting, legal, or business, which leads to a lot of ‘it slipped through my fingers, man!”.
Sony, Universal, and Warner still dominate the music industry as the major labels with deep resources, i.e., a large war chest. These big boys play a big game, and each has the financial power to secure prime slots on playlists, fund large-scale marketing campaigns for their artists, and negotiate the best streaming deals to line their pockets. It should be obvious by now that this rigged game creates a two-tier system. One tier for the elites, and the other for the paupers. No offence, I’m just being real.
There’s always a glimmer of hope on the horizon, despite these challenges. With direct-to-fan platforms like Bandcamp, Ampwall, and Bandzoogle, artists can increase their margins as these sites allow them to sell music and merchandise independently. There’s also Crowdfunding and Patreon, which offer alternative income streams. The creation of artist-friendly business models that are brought about ‘by necessity’ by independent labels and collectives is gaining some traction and is broadening the horizon for independent labels and artists alike.
The democratization of music in the digital age has created an abundance of access to music, but not, as a matter of course, the beneficial rewards. Especially for new artists forging their way, the path to gaining a stable income is quite steep and unsettling, to say the least. However, as the music industry continues to morph and evolve through its various technological advances, the challenge will still be one of creating a system that is fair and compensates its creators. This is what remains at the forefront, along with encouraging an environment for multiple voices, and balancing the way for innovation and fairness for generations to come.
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