The Reality of Music Streaming Royalties for Musicians and Record Labels

Music Streaming Royalties

The Reality of Music Streaming Royalties for Musicians and Record Labels

Not so long ago, Apple’s iTunes was setting standards in the way music was sold online. It revolutionized consumer music buying habits for about a decade until it finally fell prey to a newer technology: music streaming. Consumer preferences and tendencies have now given birth to “music on the go”! Streaming services like Pandora and Spotify took to the fore and is changing the way consumers listen to music across the world. Only time will tell if this change brings about a renaissance for the music industry, but it surely seems that the era of streaming music has truly begun and is here to stay.
21st century consumers are not looking back in their rear view mirror and instead driving forward at the speed of sound. Cumbersome downloading and sideloading processes have given way to much easier streaming applications, which better supports consumers’ mobile and transient lifestyles. Mobility in every form has taken over and smartphones have become the order of the day. Hardware manufacturers, as well as music producers, have seized this moment very effectively and are making sure music is available whenever and wherever. Music streaming services are facilitating this trend brilliantly. They are diversifying their products, embedding robust search ability into their interfaces, and incentivizing consumers with cost-effective subscription plans ranging from $5 to $10 per month.

How Does This Change Affect Musicians and Record Labels?

Well, simply said, all of this affects content owners in 2 ways: the amount of listeners that can be reached and the amount of royalties that can be earned by reaching such a larger mass of listeners. Think of both of these results in broader terms for a moment. If a CD could reach 1 person and a digital download could reach 10 people, then a stream of music might reach 100 people. These are basic micro and macroeconomics within the music industry relevant to a plethora of new technological advancements in both hardware and telecommunications.
Regarding royalties earned from streaming music (versus CDs and digital downloads), the equation is not that dissimilar. Content owners earn “dollars” for a CD sold and “pennies” for a song downloaded, yet they now earn only “fractions of pennies” once their music track is streamed. The money seems trivial when you talk in fractions but remember this is purely a numbers game: the more a track is heard, the more a track makes money. A classic case is the artist Psy’s “Gangnam Style” video/song which has fetched millions and millions in revenue whilst it was viewed over a billion times on YouTube. Yes, streaming is driving forward at the speed of sound and it is changing the way that content owners are reaching consumers and earning money!

Finding the Best Music Distributor!

Going forward, it is imperative how musicians and record labels view and analyze streaming distributions within their global music distribution portfolio. Music streaming royalties are quickly supplanting digital download earnings. In the very near term, music streaming royalties will represent the majority of music revenues. Soon, most automobiles, TV sets, computers, business broadcast systems, and mobile devices will be streaming music effortlessly throughout the world. Finding the best music distribution company, one which understands the intricate ecosystem of streaming broadcasters, telecommunications, litigations, and hardware advancements is the first step! The over-burgeoning competition for elite distribution throws open a host of players, but only a few become part of the final reckoning!

About Sugo Music Group

Founded in 1985 and based out of San Francisco, Sugo Music Group delivers one of the broadest digital distribution portfolios in the industry today. Our undisputed network of global DMS providers, businesses and services consists of all major territories, digital retailers, international radio airplay broadcasters, music publishing, performance rights organizations, content identification, film & TV licensing, in-store music services & broadcasters, video distribution & monetization, album compilations, and much more. Having mastered the art of music distribution for the last three decades, we boast of a team of accredited quality personnel who ensure that all your audio, art and metadata are properly formatted, processed and delivered using stringent industry guidelines as well as adhering to all DMS requirements. We make it a point to listen to each and every song and to get to know our licensor partners in a more meaningful way. Our flexible approach allows you to opt for an exclusive music distribution package or instead opt for our renowned A-La-Carte services based on your specific requirements.
At Sugo Music Group, we embrace the “on the move” spirit and culture of today’s music listeners while ensuring that your music plays according to the needs of a globally changing audience. Our team of professionals will ensure that your music masters will be broadcasted, downloaded, licensed, sold and monetized throughout the world, and will be available in consumers’ homes, cars, workplaces and mobile devices for years to come. To elevate your music to new heights, get in touch with us today and let us help you reap the benefits of owning a complete music distribution portfolio!

 

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