Scores and Lyrics to Royalties and Fees
- Victoria Elizabeth
- Sep 24, 2023
- 4 min read
Taking a look at the complications of the music industry in a digital age.
Similar to most, if not all of the people in the world, I listen to music on an almost 24/7 basis, whether it's through Spotify, the radio, vinyl, even cassettes (yes, in my house, we still uses cassette tapes). I grew up being taught how to read scores, surrounded by friends and family who compose and release their own music. I may not be an artist myself, but you would think I know at least a little bit about the music industry.
Sadly, I do not.
I've always known the music industry is not as straightforward as an artist recording a song, releasing it, and making money. I'll admit, though, that when Taylor Swift started releasing Taylor's Version of all her albums, I had to go on a deep dive research spree to figure out why. But that's a different story.
I've never fully realized just how complicated the industry can be, especially in a world where almost everything is now online. When musicians used to worry about how many records or CD's they'd sell, they're now worried about how many streams it takes to earn a buck. Record labels have struggled over the years, trying to make as much money as they used to when today's consumers can easily find music without having to pay for it.
While for some, it may not seem fair to be charged for streaming one song or be penalized for file sharing an album when sharing a CD had no consequences, it's good to understand why it must be done.
We're going to take a look at a few of my favorite songs and albums and figure out where exactly your money would be going if you paid to listen to it digitally. Again, I don't know much about the music industry as a whole, let alone the numbers that go behind it (I will remind you that I was an English major and numbers are my enemy). It's difficult to know how each record label splits its royalties, so these numbers may be inaccurate but hopefully you'll get the idea.
1. "Home Movies" - Lukas Graham (The Pink Album)
Lukas Graham's most recent album, The Pink Album, was released under Warner Records Inc., falling under one of the three major record labels, Warner Music Group. From what I have researched, Spotify splits royalties 30/70 with record labels, and on average, WMG along with the other two of the big three, keep about 52%, and what is left goes to the artists themselves.
In some cases, it's difficult to buy a single song without paying for the whole album, even digitally, so we'll look at the cost of each song as the cost of the album as a whole. To digitally own "Home Movies," along with the rest of The Pink Album, it'd cost you $9.49. In this case, streaming the album on Spotify means that the platform would earn about $2.85, Warner Music Group takes $4.93, while Lukas Graham themselves only gets around $1.71.
2. "Walking The Wire" - Imagine Dragons (Evolve)
The same goes for Imagine Dragons with one of their most recent albums as well. For Evolve, Imagine Dragons worked with record labels Kidinakorner and Interscope Records, both owned by Universal Music Group (another of the big three).
"Walking The Wire" with Evolve now costs $7.99. Using the same percentages as The Pink Album, with Spotify taking 30%, UMG 52%, and the band receiving the remaining 18%, Spotify would take about $2.40 of that $7.99. Universal Music Group takes $4.15, while Imagine Dragons would get $1.43.
3. What If - Cody Fry (The End)
Now, Cody Fry is a somewhat newer artist, at least on a more professional level. His numbers may be the most different from the previous two bands, but we'll stick to the same percentages.
Fry released his previous albums independently, but his newest album released just within the last month was done with Decca Records, also owned by Universal Music Group.
"What If" with the entirety of the album, The End, costs $9.98. In this case, Spotify gets $2.99, Universal Music Group keeps about $5.19, and Cody Fry would earn around $1.78.
Looking at the numbers, it's hard to say that the advance in technology and shift to digital streaming has done much good for the music industry. If anything, I would argue that it's actually done more harm.
Not only has it made it more difficult for both artists and record labels to make a profit, but streaming music is still relatively new in the grand scheme of media consumption. The legal aspects of streaming still seem to be in question, with companies trying to ensure people pay for their music in some way, with average people typically not aware of these laws.
While it's easier for musicians to reach a broader audience, the rise of platforms like TikTok and even YouTube have also blurred the lines between "professional" artists and those simply with large followings on social media.
Just like every other industry, digital media has created a number of new factors for the music industry to navigate. If I'm being honest, even I still don't quite understand all of the intricacies that goes behind it, but I do understand the changes record labels have had to make in order to benefit everyone.
As consumers, we may not want to have to pay so much, but as fans wanting to support our favorite artists, it's all we can do.
Comments