Streaming services are now paying the gatekeepers in the music industry a lot of money ,
According to an Industry Outsourcing branch known by Music Business Worldwide, the three major music labels together raised $ 6.93 billion in 2018, according to recent announcements from Universal Music Group's parent investors Vivendi, Sony and Warner companies realize a daily streaming revenue of $ 19 million.
Broken down further, the three labels generate nearly $ 800,000 per hour, solely from the music streaming services.
Rolling Stone is considered the combined revenue of the three labels in all formats and commercial activities – $ 13.14 billion, more than half of which is attributable to streaming revenue. This is more than an increase of 10 percent compared to the share of streaming revenue in 2017.
Universal (UMG) saw an increase in streaming revenue with an increase of $ 864 million a year, or 2.4 million Dollars per day compared to the previous year UMG's streaming revenue for 2018 is almost twice as high as in 2016. The most popular artists on the labels include Drake, Lady Gaga, Ariana Grande, Post Malone and The Beatles.
The music industry counts tens of billions of dollars each year. According to the Recording Industry Association of America streaming now makes up a large part of its revenue.
However, this newly discovered wealth for music streams is not shared fairly among the artists.
Streaming giants like Spotify and Apple Music are known to be only a fraction of a penny a game. Music labels absorb up to 80 percent of this revenue as part of it. Larger stars negotiating a cheaper royalty split still account for about 50 percent of music sales.
Music legends and pop superstars have even complained about how little they make music streaming.
David Crosby specifically about streaming services that were paid on Twitter last year at a low price. Founding member of Byrds and Crosby, Stills & Nash, pointed out that some major record companies were receiving ownership of services like Spotify in exchange for the low Pro-Stream salaries, effectively excluding artists from such transactions.
Taylor Swift went so far as to cut all her streaming music to protest the low percentage of profits artists receive. It only made concessions to platforms such as Apple Music, such as the commitment to pay artists for plays during the free trial period. It forced UMG to make a $ 1 billion share of Spotify with artists when the label was sold when the label re-signed them.
Many streaming companies have recently increased their payouts as the services become more popular or, in some cases, because they are doing so. The pay for artists is still low, which makes the situation unsigned, making independent artists particularly difficult. In December of last year, the popular cellist and composer Zoe Keating achieved that more than 2.25 million streaming pieces of their music on Spotify only about 12,200 dollars. Even after a raise by Spotify, Keating 2018 was higher than in previous years.
Obviously, the big labels and tech companies are now thriving in this new music streaming area. It is time for artists to get their fair share.
Mashable has contacted Apple and Spotify, and we will update this story as soon as we hear it.