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Sales are still more profitable than streams for artists

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Coklek92
7 hours ago, iHype. said:

Pure sales overall, are not more profitable than streaming overall today. That is a full blown lie.

Screen_Shot_2018-09-20_at_2.45.42_PM.png

 

There are artists in particular who still get more from sales, because their projects haven't transitioned to streaming numbers as much as they have with sales, but that's not majority.

Is it me or you actually didn't get the point? :bibliahh:

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Letemtalk
8 hours ago, Arthoe said:

According to Digital Music News, Spotify has a pay-out rate of $0.0038 per stream.

From that source: "Spotify pays $0.00397 per stream" which is the 2018 rate.

 

8 hours ago, Arthoe said:

This is one estimate, but I've seen several sources quoting less than $2 per album.

 

Quote

an album sold at retail for $9.99 results in only a buck going to the artist… but only in a rare high-end royalty deal (think U2, Madonna and the like). The vast majority of artists releasing their albums at retails have to settle for a mere thirty cents on every $9.99 record sold.

https://www.cultofmac.com/38097/infographic-most-artists-earn-more-revenue-through-itunes-than-at-retail/

 

Quote

Rolling Stone explains how iTunes works in this simple image:

itunes.gif?w=300&h=243

The data is based on if an artist receives 16% of sales. Rolling Stone says that artists generally get 12-20% of sales, depending on their popularity.

The payout for discounted tracks was even worse.

 

Quote

The aforementioned New York Times article says that “[o]n a 99-cent download, a typical artist may earn 7 to 10 cents after deductions for the retailer, the record company and the songwriter, music executives say.”

https://thoughtsofmaxh.wordpress.com/2013/08/06/how-much-money-do-artists-make-from-itunes-or-streaming-services/

 

Perhaps some of these figures are more accurate than others, but there is no way to be sure.

This is not even taking tour bundles into account, which is a more recent practice than the sources for most of these articles.

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Cain
55 minutes ago, Coklek92 said:

Is it me or you actually didn't get the point? :bibliahh:

 

1 hour ago, Taylor fanboy said:

You missed the point entirely.

The point being that one sale is more profitable than one stream? Which is duh. 

 

That user is saying that the labels with the biggest profit get most of it from streaming, and that streaming is now very much the most profitable music revenue overall (except for a select few artists).

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AlexStexaul

im glad Gaga is doing so good with both, rich queen

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katykater

Also a factor is the wording in the contract.

 

Older contracts can be like "pay out from music sales", the artist signed it because of not realising what non-music-sales-revenue is and the label doesn't have to pay out for streams and many things at all.

 

 

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Coklek92
56 minutes ago, Cain said:

 

The point being that one sale is more profitable than one stream? Which is duh. 

 

That user is saying that the labels with the biggest profit get most of it from streaming, and that streaming is now very much the most profitable music revenue overall (except for a select few artists).

And I think you and iHype don't get the point tho. The OP is pointing out artists that do extremely well on both streaming and pure sales which turn out that pure sales is more profitable than streaming. 

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Ash12345
5 hours ago, KillingYourCareer said:

Wait, so... if $0.0038 is the average pay for one stream, why is the sales-equivalent ratio 150:1 and not 265:1 (aka the amount to add up to $0.99)?

The pay out rates for other streaming services is better.

 

Average per stream

 

Tiday: $0.01284

Apple Music: $0.00783

Deezer: $0.0074

Google Play: $0.00611

Spotify: $0.00397

 

However, the weighted average for on-demand audio streams (ie excluding programmed Pandora and Youtube video streams) based off market share is still only $0.0049 so streams are still over-valued on the charts and should count for 200:1.

 

Also based off those numbers, the pay-out for Spotify to the performing artist comes down to 3500 streams paying as much as album sale. That means Scorpion would need 20 billion + streams to generate the same amount of revenue for Drake and Taylor Swift's self-titled album generated for her.

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Ash12345

Also it will be interesting to see how Spotify can start to turn a profit. Probably growing international subscriptions will be part of it, however, if a big chunk of its expenses are paying for royalties (and servers?) rather than content generation, that probably won't help as much as it did for Netflix. Perhaps Spotify will try to create its own record label though, that would be interesting, but it'll likely have to raise subscription costs too.

 

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novembers17th

Yeah but it's more so because of the antiquated laws and industry standards. That's really what needs to change in order to catch up to the streaming era, not the other way around. Gotta move forward, not back. 

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Leon
13 hours ago, iHype. said:

Pure sales overall, are not more profitable than streaming overall today. That is a full blown lie.

Screen_Shot_2018-09-20_at_2.45.42_PM.png

 

There are artists in particular who still get more from sales, because their projects haven't transitioned to streaming numbers as much as they have with sales, but that's not majority.

You don't know to to read this pie chart sweetie.

 

So do you understand better. Rihanna made 80% of her revenue from ANTI from pure album/single sales.

 

Hope you get it now.

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KillingYourCareer
1 hour ago, Ash12345 said:

The pay out rates for other streaming services is better.

 

Average per stream

 

Tiday: $0.01284

Apple Music: $0.00783

Deezer: $0.0074

Google Play: $0.00611

Spotify: $0.00397

 

However, the weighted average for on-demand audio streams (ie excluding programmed Pandora and Youtube video streams) based off market share is still only $0.0049 so streams are still over-valued on the charts and should count for 200:1.

 

Also based off those numbers, the pay-out for Spotify to the performing artist comes down to 3500 streams paying as much as album sale. That means Scorpion would need 20 billion + streams to generate the same amount of revenue for Drake and Taylor Swift's self-titled album generated for her.

Thank you! Italy's charts and certifications only counts premium streams, do you know if premium streams generate more revenue than freemium?

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Taylor fanboy
11 hours ago, Cain said:

 

The point being that one sale is more profitable than one stream? Which is duh. 

 

That user is saying that the labels with the biggest profit get most of it from streaming, and that streaming is now very much the most profitable music revenue overall (except for a select few artists).

Precisely so he missed the point of the op.

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Taylor fanboy
6 hours ago, Ash12345 said:

Also it will be interesting to see how Spotify can start to turn a profit. Probably growing international subscriptions will be part of it, however, if a big chunk of its expenses are paying for royalties (and servers?) rather than content generation, that probably won't help as much as it did for Netflix. Perhaps Spotify will try to create its own record label though, that would be interesting, but it'll likely have to raise subscription costs too.

 

Or maybe Spotify is already owned by labels keke

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Messiah St. West

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