SXSW Music 2016
Making Streaming Royalties Fair(er)
Streaming royalties from subscription services like Spotify, AppleMusic, and others are distributed using the "Big Pool" (pro-rata) distribution method. There are questions as to whether this method of royalty distribution is fair or even in the best interests of the music industry (artists, labels, and services). A new approach is the "Subscriber share" model. Subscriber share distributes royalties based on the plays of each individual subscriber instead of pro-rata across all subscribers. Can the subscriber share approach to royalty distribution increase royalties for artists with fan bases as music streaming services start to scale?
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Additional Supporting Materials
- Does subscriber share income distribution provide a better pathway for artists (small or large) with fan bases to make a living wage?
- Is click-fraud a serious issue for music services and royalty recipients? How does it impact revenues for artists using the existing pro-rata model?
- Why the music industry should push digital music services to evaluate subscriber-share distribution.
Dick Huey, Founder, Toolshed