Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report

Members-only racket

Dec 12, 2019

Latest Episodes

Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report

Trump's WTO KO

Dec 12, 2019
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Download
HTML Embed
HTML EMBED
Click to Copy
Download
HTML Embed
HTML EMBED
Click to Copy
Download
HTML Embed
HTML EMBED
Click to Copy
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Download
HTML Embed
HTML EMBED
Click to Copy
Make Me Smart with Kai and Molly

Streaming now accounts for almost half of music revenue

Adam Allington Sep 22, 2016
Share Now on:
HTML EMBED:
COPY
Revenue in the music industry is up 8.1 percent for the first half of 2016.
Image via Spotify

Revenue in the music industry is up, thanks in no small part to the explosive growth of streaming services, such as Spotify and Pandora.

After years of shrinking profits due to online piracy and falling prices, revenue is now up 8.1 percent for the first half of the year, according to the Recording Industry Association of America.

That’s good news for record companies. However, the streaming companies are still over a barrel, said Andrew Sparkler of Downtown Music Publishing.

“They’re saying, ‘We’re paying 70 cents of every dollar for royalties, and that doesn’t take into account any other aspect of our business and that’s untenable,” Sparkler said.

According to Spotify’s annual report, revenue in 2015 was up 80 percent, but it still couldn’t turn a profit. In fact, its net loss actually grew.

Dean Wareham is with the band Luna. He said making money off streaming largely depends on who owns the recording.

“On Luna records that we own, we see some income,” he said. “On the records that we made for the Warner Music Group, we barely see anything.”

It’s true, noted Wareham, that royalties for musicians have tanked since the time when people bought more physical products and legal downloads.

These days he makes more from T-shirts than streaming.

“And from playing live. You know, I earn more in one or two nights playing at a club in New York than I do from Spotify all year long,” Wareham said.

On the flipside, he noted, in 2016 you don’t necessarily need a record label to get your music out.

If you’re a member of your local public radio station, we thank you — because your support helps those stations keep programs like Marketplace on the air.  But for Marketplace to continue to grow, we need additional investment from those who care most about what we do: superfans like you.

Your donation — as little as $5 — helps us create more content that matters to you and your community, and to reach more people where they are – whether that’s radio, podcasts or online.

When you contribute directly to Marketplace, you become a partner in that mission: someone who understands that when we all get smarter, everybody wins.

Two pairs are better than one!

For a limited time, you can get BOTH new Marketplace Sock designs for only $5/month.

Don’t wait – this special offer ends soon!