Search Topic: I made some slight alterations to my topic as I mentioned in my previous post. I am now studying the effectiveness of the ‘Pro-rata’ royalties’ model (which is currently used by most of the major music streaming platforms) compared to a user-centric model based on fan-powered royalties. Many of these companies claim they want to protect artist rights, support freedom of expression & creativity, and provide a fair environment that supports these ideals. However, the number of artists growing frustrated over the lack of royalty payments has been increasing.
So, my question is: Which model is more effective at paying artists a fair wage while supporting the previously mentioned ideals? What limitations come with each model? What are the benefits?
Search #1 https://www.proquest.com/docview/2533910701?accountid=27424
- Database: Emerald Online
- Search Terms: Online Streaming AND (Royalties)
- Results: 399
Citation: Im, H., Song, H., & Jung, J. (2020). The effect of streaming services on the concentration of digital music consumption. Information Technology & People, 33(1), 160-179.
The methods of this report detail the variables that affect streaming counts and discuss long-term vs. short-term payouts. In conclusion, “a relatively small number of hit songs offer disproportionately large compensation.” However, the researcher makes a clear point that some variables haven’t been counted for within the viewer base, so more time is needed to come up with better calculations. It also tackles an important question: If it is possible to purchase an album and listen to it indefinitely, then should every stream be charged separately? Overall, I think this is a helpful reference that highlights some of the underlying issues with today’s major streaming services.
Search #2 https://journals-sagepub-com.ezproxy.fhsu.edu/doi/full/10.1177/0163443720919376
- Database: Social Sciences Full-text
- Search Terms: Music Streaming AND (Royalties)
- Results: 11
Citation:
Towse, R. (2020). Dealing with digital: the economic organisation of streamed music. Media, Culture & Society, 42(7–8), 1461–1478. https://doi.org/10.1177/0163443720919376
Quoted from the reference above, “This article analyses the supply side of streaming through the lens of platform economics and the attendant business models and considers those consequences for payments to artists, using the Norwegian music industry, one of the most advanced in terms of the use of streamed music, as a case study.” This is a critical piece of information for my research topic that takes a look at this issue from an economics standpoint, as well as a moral point of view. In conclusion, “Streaming has disrupted the process of payments to creators and performers…The creation of the making available right as an individual right (rather than a collective right entitling performers to equitable remuneration) has if anything reduced payments to performers.
Visual Aid:
Streaming service monthly subscription rates (2019)
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Rates per stream to major labels (2019)
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Streaming rates to unsigned artists (2017)
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Total # of plays to reach U.S minimum monthly wage (2019)
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- Database: Google Scholar
- Search Terms: Music Streaming Royalties
- Results: 11,400
Citation:
Dimont, J. (2018). Royalty Inequity: Why Music Streaming Services Should Switch to Per-Subscriber Model. Hastings Law Journal, 69(2), 675-700.
The premise of this report tackles the very same question that I am proposing. Taken from the abstract, “Under a subscriber-centric model, royalty distribution would more accurately reward artists for generating fans, not streams. Each month, the streaming service should take each subscription fee and apportion it out based on the percentages of artists that unique listeners choose to listen to during the subscription period.”
The online paper is dated from 2018, so it is still very much relevant as we count down the days to 2022. One subject in particular, that I am very interested in citing from this report, is the problem with click-fraud and how the pay-per-play model that is currently used supports, and rewards, this fraudulent behavior. Switching to a system based on individual subscribers, while not a perfect solution, would more effectively address these issues.
Overall, this is a very helpful recourse with plenty of forward and reverse citation.
Search #4 https://doi.org/10.1177/1461444820953541
- Database: Google Scholar
- Search Terms: Music Streaming Royalties
- Results: 11,400
Citation:
Hesmondhalgh, D. (2021). Is music streaming bad for musicians? Problems of evidence and argument. New Media & Society, 23(12), 3593–3615. https://doi.org/10.1177/1461444820953541
This report concentrates on the controversy of, “the amount of money that music creators receive for the recorded music that is distributed on these services.” The publishing date is from September 19th, 2020, and therefore would be a very relevant source to reference. There is plentiful use of citation, along with visual aids to help the reader better understand some of the data sets. In the article, the research takes a look at how much the top tier artists vs. the bottom tier are paid, how the dispersal of user funds is allocated, and the different possible outcomes that could happen from a shift to a user-centric model.
This report outlines several ways in which the user-centric model would benefit a majority of the artist that make up our current streaming services in ways such as: “it may be more equitable, in that, compared with the pro-rata model, it potentially pays less to superstars, and more to less streamed artists… Second, and relatedly, the user-centric model may favour ‘local’ musicians… Third, the user-centric model is arguably more transparent in that it allows users to have a better sense of how their use translates into payment for rights holders.”
However, this report also addresses the topic of “problems and complexities”. A brief overview of this section questions whether the habits of indie listeners would have a negative impact on its artists considering the wide range of music this group of people usually consumes. In essence, you usually find a smaller number of views over a wider range of music, compared to a massive collection of views for a few hit songs.
I think this is a very helpful resource to have because it tackles the benefits and possible drawbacks of trying to find a solution to the current issues at hand, and its use of citation and early publishing date make it a relevant piece to use.
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Figure 1. Zoe Keating’s earnings from music streaming services in a year (Source: Keating, 2019. The figures do not correspond exactly to the calendar year 2018 because of a lag between streams and payment).
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Figure 2. Income for an independent record company from 20 music streaming services and other digital music providers. Source: The Trichordist (2019).
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Figure 3. Digitalisation was associated with increasing dominance of top 1% of artists, with streaming came recovery of revenues. Source: Mulligan (2014).
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Figure 4. Distribution across a random sample of 10,000 streams. Source: Muikku (2017: 9).
Search #5 https://gabriellaksmith.com/wp-content/uploads/2020/04/Music-Business-II-Final-Paper.pdf
- Database: Google Scholar
- Search Terms: Digital Streaming Service Royalties
- Results: 9,210
Citation:
Smith, G. (2020). ROYALTIES FOR STREAMING & THE MUSIC MODERNIZATION ACT. https://gabriellaksmith.com/wp-content/uploads/2020/04/Music-Business-II-Final-Paper.pdf
This brief ‘Music Business Finals Paper’ discusses how copyrights work and their relation to the digital age. The music Modernization Act is a central topic in this report which makes it an important source. This piece of legislation was introduced in 2018 and will continue to increase royalty payments towards artists until 2023 where payments will be 50% higher than where they started out at.
This source has a modest amount of citation, again it is a brief report which mainly examines and explains the current environment and predicts the long-term effects of the Music Modernization Act. However, there doesn’t seem to be any forward citation on this article. It is dated from April 24th, 2020, so it is a recently published source that could explain its lack of forward citation.
This article concludes with a section stating, “the Music Modernization Act will put into place an entirely new system of mechanical royalties while also taking extra negotiation measures for performance royalties in judicial court.” Then quickly recaps the main areas that will be affected; Decrease administration costs for publishers, reduce the number of unclaimed royalties and unlicensed tracks, and set equal standards in courtroom negotiations.
This is another helpful source that covers a topic which is currently happening. I think this is an important piece of information to include as it covers the regulations our government is implementing to help fix the situation.
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Overall, I would say I have reached my point of saturation. I’m a little apprehensive to admit that Google Scholar seemed to be the easiest database to use, and it provided the highest number of relevant results. Regardless, there were a number of different articles from other databases that I did not get around to. There does not seem to be any lack of information on this subject and I feel I have everything I need to conclude my research.