Independent artists continue to face a staggering challenge: the need to generate five million streams a year just to earn the American minimum wage.
This is according to new data released by Duetti in the music financing company's annual “Music Economy Report for Independent Artists.” Despite the general perception of streaming platforms as a democratizing force in the music industry, the report reveals some sobering truths.
Independent artists are estimated to earn approximately $2.95 per 1,000 streams, a rate that has decreased by 2% in 2023. The decline is attributed to several factors, including Spotify's expansion into lower-cost markets, reliance on discounted plans and the introduction of promotional features. like the streaming giant's controversial Discovery mode.
While platforms like Apple, YouTube and Amazon have increased their payout rates, due in part to recent increases in subscription prices for consumers, Spotify's strategies have led to an 8% reduction in what they pay to independent streaming artists. This is a significant development, given that Spotify still has the largest share of the independent artist portfolio, commanding 55% of the market.
Another finding from the report reveals the high percentage of revenue spent by independent artists on distribution fees, which average around 26%. These high fees are usually unavoidable and depend on gender. Unfortunately, Latin and country music artists were hit hardest by these fees compared to other styles of music.
For more information on the state of the streaming economy, read Duetti's full report. here.
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