Streaming Money Is Flowing … But Where To ?
The Canadian music industry gets millions in
revenue from on-demand streaming services , but is it being divided fairly ?
By Michael Raine
Record labels , music publishers , songwriters , and musicians ; these folks are earning money from on-demand streaming services . Combined , they ’ re earning a lot of money from the likes of Spotify , Apple Music , Google Play Music , and Tidal . Do music ’ s rights holders feel they ’ re due more money ? Of course . But the current numbers aren ’ t to be scoffed at and the real question is : where is the money going and is it fair ? Depends who you ask , if you can ask them .
What is “ a lot ” of money ? Let ’ s say $ 2.9 billion , the amount the music industry made globally from streaming in 2015 , according to the IFPI , which represents the recording industry . That $ 2.9 billion was a 45.2 per cent increase in streaming revenue over 2014 and marked a turning point , making 2015 the first year that digital revenue surpassed physical . Even better , 2015 saw a 3.2 per cent year-over-year increase in global
38 • CANADIAN MUSICIAN recorded music revenue after many years of decline , thanks almost entirely to streaming . That trend carried over to 2016 , with all three major labels – Sony Music Entertainment , Warner Music Group , and Universal Music Group – reporting their first quarters ever of streaming being their biggest money maker . Sony earned around US $ 300 million globally between April and June 2016 from streaming . Warner earned an estimated US $ 181 million in the first three months of this year from streaming . During those same three months , Universal , the largest of the three majors , made US $ 351 million from streaming . The IFPI ’ s 2016 Global Music Report painted an even rosier picture for the Canadian recorded music industry . The Canadian industry ’ s growth in 2015 was 8.3 per cent , more than double the global average . In 2015 , paid subscription streaming revenues grew 151 per cent over the previous year to US $ 29.4 million , with ad-supported streaming adding another US $ 19.49 million . This year-overyear growth in Canadian streaming revenue surpassed the global average by a significant margin ( though that is making up for lost time as Canada was a relative late comer to the on-demand streaming market ). So why do musicians , songwriters , and music publishers seem so unhappy ? It ’ s about how the money is divided .
( Important to note is the vast majority of indie labels in Canada have a distribution agreement with one of the three majors , which dictates the indies ’ streaming revenue .