I was reading an article in “Bloomberg Businessweek” about streaming music. The gist of it was that not many of the popular stand alone streaming services are profitable. I use Pandora, I don’t pay for their premium service, I’m not anal enough for their ads to bother me.
It also said that on average Labels/Publishers get ¼ of $0.01 each time a song is streamed. ¼th of a penny and that the artists got 15% of that scrap of zinc. So the #’s geek/freak in me had to crunch those #’s. . Based on those numbers a song has to be played 2667 times for the artist/band to get 1.00. Then you have the group dynamic of how say the Heartbreakers or the E Street Band, or even how John Mellencamp pays his band/staff/partners, so it takes even more plays for the Mellencamp, the Tom Petty or the Bruce Springsteen to earn a dollar.
I’m not suggesting offering any pity, but those rates are barely better than what they made off of Napster(not a damn cent), at least Napster spread music around, and likely led to purchases, and ticket sales, so it wasn’t all bad.
It’s not a surprise that artists such as Frank(I just typed Billy) Ocean cuts an exclusive and direct deal with Apple Music(as others have), which cut out Universal Music Group. I’m sure more of that will come.
In another section of the magazine it said paid subscriptions to services such as these were up 124%, so maybe profits aren’t too far away. The same chart mentioned that Sales of Vinyl albums are up 26%, which is a cool thing. Not that I have a vinyl collection or even a record player that would play them, but I can still feel that it is cool.