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At Least One Established Indie Label Pays Artists A Fair Share Of Spotify, Streaming Income

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There has been a heated ongoing debate over the size of royalty payments from Spotify and other streaming music services.  Are the checks too small? Or are we just in the early stages and payments will become more significant with time?  One area where there is much less disagreement, except perhaps within the labels themselves, is over the pittance that labels are passing on to artists.

A multitude of reports point to most labels only passing along a small proportions of the income they receive from Spotify and other music streamers. Even after tens of thousands of plays many artists are netting less than a cup of Starbucks coffee.

50/50 Split

But  Beggars Group  - XL, Matador, Rough Trade, 4AD - pays its artists as if streaming is licenced music.  "When we looked at the streaming models we felt that splitting this revenue 50/50 as licensed income was the right thing to do - we couldn't justify it as a 'sale'," Beggars Group director of strategy Simon Wheeler told Music Week. If other labels follwoed their lead, artists would receive "two or three times" their current income from streaming, according to Wheeler.