This is according to this report from the UK government’s survey on how music creators are remunerated from streaming.
Many stakeholders express concern about how revenues from streaming are currently distributed, particularly the approximately 52 per cent of total streaming revenues (after VAT) that currently goes to recording rightsholders. The music recording sector argues in response that the current share is justified because of its high level of spending on A&R and marketing, and the economic risks involved in signing new artists.Read the UK governments ‘Music Creators’ Earnings in the Digital Era’ report HERE
More interesting findings from the report:
- 54% of creators whose only source of income was music earned more than they spent on their careers, 22% higher than those for whom music contributed significantly to their income (32%)
- One third (33%) of those for whom music was the only source of income spent more on their career than they earned (16% ‘significantly more’, 17% ‘a bit more’)
- Based on the average royalty rates outlined in this report, the earnings that featured artists, non-featured performers and studio producers have made from recording rights revenues have remained relatively stable. They amounted to £220m in 2008 (£296m in 2019 terms), reached a low point in 2012 of approximately £200m (£238m in 2019 terms) and in 2019, was £300m – back to 2008 levels.
- Based on the average royalty rates and calculations outlined in this report, the earnings that composers and lyricists gained from music publishing rights increased somewhat by 11% between 2008 and 2019 from £265m in 2008 (£356m in 2019 terms), to £395m (an 11% increase on the inflation-adjusted 2008 figure), after reaching a low point in 2010.
- Royalties for top hit songs are being shared among an increasing number of composers and lyricists per work; in contrast, the revenues for top hit recordings are being shared among a declining number of featured artists per recording.
- Featured artists have more capacity than composers and lyricists to gain higher royalty rates as they are starting from a lower average rate. However, they might not be able to do so if they are tied to an older ‘legacy’ contract.
Read the UK governments ‘Music Creators’ Earnings in the Digital Era’ report HERE