Music Streaming, New Money Vs. Old and the Market Cap of All Music… | The Cynical Musican

A must read post from The Cynical Musician:

“In a hypothetical future that is nothing but streaming (a depressingly real possibility, given that everything but streaming is going down the drain), the size of the industry is capped at 70% of streaming service revenue. There’s no way to grow the industry, because there’s no new money coming in. The subscription revenue pays for all present and future consumption, it doesn’t matter how many (or few) hot new releases there are. In fact, it doesn’t even matter what music is on the service or how popular it is. The size of the pie is fixed from the start.”

READ THE FULL POST HERE:
http://thecynicalmusician.com/2014/11/new-money/

What YouTube Really Pays… Makes Spotify Look Good! #sxsw

Is this the future of music? We continue to look at more artist revenue streams.

We’ve been waiting for someone to send us this kind of data. This info was provided anonymously by an indie label (we were provided screenshots but anonymized this info to a spreadsheet). Through the cooperative and collaborative efforts of artists such as Zoe Keating and The Cynical Musician we hope to build more data sets for musicians to compare real world numbers.

In our on going quest for openness and transparency on what artists are actually getting paid we’d love to hear from our readers if their numbers and experience are consistent with these numbers below. At the very least, these numbers should be the starting point of larger conversations for artists to share their information with each other.

Remember, no music = no business.

whatyoutubereallypaysFor whatever reason there appear to be a lot of unmonetized views in the aggregate. So let’s just focus on the plays earning 100% of the revenue pool in the blue set. These are videos where the uploader retains 100% of the rights in the video including the music, the publishing and the video content itself.

Plays  Earnings  Per Play
2,023,295 $3,611.84 $0.00179
1,140,384 $2,155.69 $0.00189
415,341 $624.54 $0.00150
240,499 $371.47 $0.00154
221,078 $313.47 $0.00142
TOTALS TOTALS AVERAGE
4,040,597 $7,077.01 $0.00175

So it appears that YouTube is currently paying $1,750 per million plays gross.

We understand that people reading this may report other numbers, and that’s the point. There is no openness or transparency from either Spotify or YouTube on what type of revenue artists can expect to earn and under what specific conditions. So until these services provide openness and transparency to musicians and creators, “sharing” this type of data is going to be the best we’re going to be able to do as East Bay Ray comments in his interview with NPR.

As we’re now in a world where you need you need a million of anything to be meaningful here’s a benchmark of where YouTube ranks against Spotify.

Service  Plays  Per Play  Total  Notes 
Spotify To Performers/Master Rights 1,000,000 0.00521 $5,210.00 Gross Payable to Master Rights Holder Only
Spotify To Songwrtiers / Publishers This revenue is for the same 1m Plays Above 0.000521 $521.00 Gross Payable to Songwriter/s & Publisher/s (estimated)
YouTube Artist Channel 1,000,000 0.00175 $1,750.00 Gross Payable for All Rights Video, Master & Publishing
YouTube CMS (Adiam / AdRev) ** 1,000,000 0.00032 $321.00 Gross Payable to Master Rights Holder Only

The bottom line here is if we want to see what advertising supported free streaming looks like at scale it’s YouTube. And if these are the numbers artists can hope to earn with a baseline in the millions of plays it speaks volumes to the unsustainability of these models for individual creators and musicians.

Meet the New Boss: YouTube’s Monopoly on Video | MTP

It’s also important to remember that the pie only grows with increased revenue which can only come from advertising revenue (free tier) and subscription fees (paid tier). But once the revenue pool has been set, monthly, than all of the streams are divided by that revenue pool for that month – so the more streams there are, the less each stream is worth.

All adrev, streaming and subscription services work on the same basic models as YouTube (adrev) and Spotify (adrev & subs). If these services are growing plays but not revenue, each play is worth less because the services are paying out a fixed percentage of revenue every month divided by the number of total plays. Adding more subscribers, also adds more plays which means that there is less paid per play as the service scales in size.

This is why building to scale, on the backs of musicians who support these services, is a stab in the back to those very same artists. The service retains it’s margin, while the artists margin is reduced.

[** these numbers from a data set of revenue collected on over 8 million streams via CMS for an artist/master rights holder]

RELATED:

Streaming Price Index Updated 2014 : Per Stream Pay Rates

Music Streaming Math, Can It All Add Up?

YouTube Shares Ad Revenue With Musicians, But Does It Add Up? | NPR

Copyright and Control | The Cynical Musician

Faza at The Cynical Musician explores the question of control in copyright.

Copyright “skeptics”, like TechMike, tend to focus on the language of the “Copyright Clause” and construct elaborate theories about what “promoting the progress of science and the useful arts” really means. While they’re at it, they may wish to also consult the dictionary with regards to the meaning of the word “secure”2 and how it isn’t a synonym for “grant” – though that is besides the point here. Giovanetti rightly points out that promoting progress is the goal of the Copyright Clause and doesn’t actually say much about the means (that’s done in the other bit, about securing exclusive rights). What I wish to do today is to examine how the control aspect of copyright helps promote progress and why it is important.

READ THE FULL POST AT THE CYNICAL MUSICIAN:
http://thecynicalmusician.com/2013/09/copyright-and-control/

Weekly News & Links Sunday September 9, 2012

Grab the coffee!

Recent Posts:
* Javier Bardem on The Rights of Artisans and Filmmakers
* U2 Exploited by United Airlines, Jet Blue, HP, State Farm, Westin, Urban Outfitters…
* Trichordist + Facebook = FarePlay
* The Trichordist Blogroll – Labor Day 2012

New Blog VOXINDIE provides and excellent guide on how indie musicians and filmmakers can utilize YouTube’s Content ID System. Read more [here].

As always, fantastic new commentary and insight from The Cynical Musician. This time on Making Stuff and Making money, Read more [here].

Many in the free culture movement fail to recognize the good work done by artists who invest by giving back to the community. When artist become successful they often take up causes. Some obvious examples would be Sting for Rain Forrests, Bono for Human Rights and Amnesty International and Elton John for Aids Research. Let us also not forget USA For Africa and Live Aid as well. Demonizing “rich rock stars” is a shallow attempt to distract from the real issues of illegal artist exploitation online. We were glad to see Forbes report on Jon Bon Jovi’s philanthropy work.

Music Tech Policy offers spot on response to the ongoing nonsense that the artists number one problem is obscurity. It’s not. The artists number one problem is the same as it is for everyone, getting paid for your work. Everyone has bills to pay.

Support for the Pirate Party in Germany appears to be diminishing. Amongst the problems facing the fledging party (of which there are many) a primary one appears to be “the novelty is wearing off.” SPIEGEL online reports [here].

This is how we got Al Capone… Pirate Bay Founder Arrest Related To Tax Hack, Not Piracy. Although isn’t a Tax Hack just money piracy? Torrent Freak Reports [here].

Another artists speaks out against Spotify payments and practices. This time it’s Grizzly Bear, as reported by Digital Music News [here].

The Trichordist Random Reader News and Links Sun Apr 22

Grab the Coffee!

Here’s some interesting stories and links we discovered or were sent during the week. These may not be stories OF the week, as we share them as we find them.

German Court Rules Against YouTube in Copyright Case:
http://news.yahoo.com/german-court-rules-against-youtube-copyright-suit-115708414–sector.html

Supporting Copyright Is Not The Same as Opposing Free Speech:
http://www.guardian.co.uk/music/musicblog/2012/apr/19/copyright-freedom-speech

Rapidshare Writes Four Page Anti-Piracy Manifesto:
http://www.theregister.co.uk/2012/04/20/rapidshare_stop_piracy/

Interesting interview Between Ben Watt of Everything But The Girl and Journalist/Author Robert Levine:
http://www.buzzinfly.com/index-robert-levine-interviewed-by-ben-watt.html

Musician / Composer Mark Isham Launches ibuymymusic.org
http://ibuymymusic.org/I_Buy_My_Music_Dot_Org/Home.html

TechDirt Goes on the Defensive after Gearslutz thread asks, “Why does TechDirt hate musicians”:
http://www.techdirt.com/articles/20120415/02354118491/difference-between-nuanced-discussion-evil-underbelly-internet-is-apparently-fine-line-indeed.shtml
http://www.gearslutz.com/board/music-business/719114-why-does-techdirt-hate-musicians.html

The Chicago Reader Picked up On David Lowery’s “New Boss, Worse Than Old Boss” as posted at TheTrichordist.
http://www.chicagoreader.com/Bleader/archives/2012/04/17/the-good-old-bad-old-days

Another shout out to TheTrichordist, this time from The Cynical Musician:
http://thecynicalmusician.com/2012/04/recommended-reading-the-trichordist/