Recording artist royalties

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Recording artist royalties are a vital part of an artist's income and are gained through the digital and retail sale of their music along with the use of their music in streaming services, broadcasting, and in other forms of media such as TV shows and films. [1] [2] [3] [4] [5] [6] [7] [8] [9] [10] [11] [12] [13]

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Spotify, a music streaming company, has attracted significant criticism since its 2008 launch, mainly over artist compensation. Unlike physical sales or downloads, which pay artists a fixed price per song or album sold, Spotify pays royalties based on the artist's "market share"—the number of streams for their songs as a proportion of total songs streamed on the service. Spotify distributes approximately 70% of its total revenue to rights holders, who then pay artists based on their individual agreements. Multiple artists have criticised the policy, including Taylor Swift and Thom Yorke, who temporarily withdrew their music from the service.

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As of 2016, Spotify has faced accusations from numerous publications, such as Music Business Worldwide and Vulture Magazine, regarding their practice of commissioning tracks and listing them under fake names on their music platform. Some allege that the practice exists in order to reduce the amount of royalty payments distributed to real recording artists. In December of 2024, the specific initiative of Perfect Fit Content (PFC) was revealed in a report by Liz Pelly, a music writer and critic whose internal investigation regarding the matter, titled "The Ghosts in the Machine", was published in Harper's Magazine. Other publications have also since raised concerns about the growing amount of generative artificial intelligence in Spotify's playlists and on the service writ large.

References

  1. Plaugic, Lizzie (7 December 2015). "Spotify's Year in Music shows just how little we pay artists for their music". The Verge. Retrieved 5 August 2016.
  2. Ek, Daniel. "$2 Billion and Counting". Spotify News. Retrieved 5 August 2016.
  3. Brabec, Todd; Brabec, Jeff. "Recording Artist Royalties". American Society of Composers, Authors and Publishers (ASCAP). Retrieved 5 August 2016.
  4. Marcone, Stephen (8 May 2013). "The Poverty of Artist Royalties". Music Business Journal. Retrieved 5 August 2016.
  5. "About Digital Royalties". Sound Exchange. Retrieved 5 August 2016.
  6. Dredge, Stuart (3 April 2015). "How much do musicians really make from Spotify, iTunes and YouTube?". The Guardian. Retrieved 5 August 2016.
  7. "Spotify Explained". Spotify Artists. Retrieved 5 August 2016.
  8. Johnson, David (18 November 2014). "See How Much Every Top Artist Makes on Spotify". Time Business. Retrieved 5 August 2016.
  9. Reisinger, Don. "Music Royalties Adjusted: Did Taylor Get Her Way?". Fortune. Retrieved 5 August 2016.
  10. Robley, Chris (8 May 2013). "Music Publishing Royalties Explained: What is a Mechanical Royalty?". DIY Musician. Retrieved 5 August 2016.
  11. Raterman, Kaitlyn. "Music Royalties 101: What They Are and How to Collect". Sonicbids Blog. Retrieved 5 August 2016.
  12. Kate, Swanson (2013). "A Case Study on Spotify: Exploring Perceptions of the Music Streaming Service" (PDF). Journal of the Music & Entertainment Industry Educators Association. 13 (1). Retrieved 5 August 2016.
  13. Rae, Casey. "Where's My Mechanicals? The Ultimate Explainer". Future of Music Coalition. Retrieved 5 August 2016.