back to article Pandora pleased with 15% rate hike for streaming music

Pandora is pleased with a 15 per cent increase in the royalty rate it will have to pay to stream music, with its CEO calling the hike "a rate we can work with." Starting January 1, the internet radio service will have to pay 17 cents per 100 songs listened to on its ad-supported service, and 22 cents for its paid-for service. …

  1. Anonymous Coward
    Anonymous Coward

    One thing always puzzles me here, how come the artists are never happy with the poor rates they receive yet the record companies seem fine with it when they make these agreements?

    1. MrWibble

      I suspect the 17 cents is going to the record company, with maybe 2 or 3 cents going to the artist.

      1. Anonymous Coward
        Anonymous Coward

        I'm feeling all sad

        maybe 2 or 3 cents going to the artist.

        FX:Sound of sad violin playing, accompanied by these images

        When a CD gets sold, the cost is say $10 (or eight quid in real money). The artist gets on average about $1.50 or one gold coin bearing Her Majesty's image. If we say that the album has only ten tracks, then the artist gets fifteen cents/10 pence per track. If in my ownership the album gets played only ten times, the artist is getting 1.5 cents, or a penny per play. Most of my CDs get played far, far more than ten times, so the payment per play drops by approaching an order of magnitude to something around 0.1 cent per play over the first two or three years of ownership.

        So, with a CD the artists sell a pre-pack of tracks that they choose, not me (I'll ignore digital downloads, that's for spotty kids), and they get pre-paid, albeit at this imputed 0.1 cent per track. Even if the artist only gets 3 cents per streamed play, they are still choosing to offer an advanced payment + bulk buy discount of 97% to buyers of CDs.

        I'd say that if musicians could do maths, they'd think that streaming services were doing them a big favour. The only way that musicians can be better off is if they believe that when a CD is bought, it simply doesn't get played more than a couple of times.

        1. Jedit Silver badge

          "The artist gets on average about $1.50 or one gold coin bearing Her Majesty's image."

          Janis Ian, who was one of the first musicians to notice that making some of her music available online for free increased her record sales, has said that in a 20-year career on major labels she never once saw a royalty statement that didn't say she owed the label money.

  2. Stretch

    I really don't understand the artists' case. Their not expected to live on 17 pence or anything. Its just a revenue stream - have lots of them. Sell your own merchandise. Get writing and production credits. Have video channels on multiple sites with ad placement. Play gigs.

    Don't expect to do a few days work and dine out on it for the rest of your life.

    1. beep54
      Facepalm

      Uh, dude! The artists fucking created the thing that is generating money and something else is making a pretty penny off of THEIR DAMN WORK. Of course they are fucking pissed! [pardon my French, else I will fart in you general direction]

      1. Stretch

        Did the programmers building the applications, the services and all the stuff to keep it up do no work? Do they not deserve to be paid? Do the infrastructure guys who worked to deliver high capacity networks deserve nothing? What about the free advertising and bandwidth the artist gets? How much of that are they factoring in? Also, there are vulture capitalists to pay off you know.

        If they want more money sell directly. If they don't like the terms, don't make their stuff available via the service. The pie got bigger but they have to share. Deal with it.

        By the way, years of my work was stolen and presented here: http://www.solarapparel.com/ I'm not going to whine about it. I've found where they live.

        1. John Tserkezis

          "By the way, years of my work was stolen and presented here: http://www.solarapparel.com/ I'm not going to whine about it."

          I think you just did, because knowing where they live won't "fix" anything. Not legally, anyway.

      2. DavCrav

        "Uh, dude! The artists fucking created the thing that is generating money and something else is making a pretty penny off of THEIR DAMN WORK. Of course they are fucking pissed! [pardon my French, else I will fart in you general direction]"

        No they didn't create it. They played things other people have created to make music. Do musicians invented the guitar, built the guitars, drums, keyboard, synth programs, and so on? Do they make sure to pay Yamaha a royalty every time they press the keys on their keyboard? Did they invent the CD burning process, or manufacture their own CDs. How abut the algorithms to digitize music?

        Everybody uses the work of others all of the time. Sometimes people get paid for that work, sometimes they don't. Musicians have the option of not hosting their music on these services, if the rate is considered too low. And did you miss the bit where Pandora, and Spotify, etc., don't make any money? So who exactly is profiting on all these starving artists' work? (Hint: Apple and Google.)

  3. The Nazz

    If only ...

    the plumber got paid a royalty every time the collections agencies staff took a dump on his installations.

    Or spoke shit.

    1. ecofeco Silver badge

      Re: If only ...

      HA! Have an upvote.

  4. soundcloud-boost

    thank you

    Thank you for this post

  5. Anonymous Coward
    Angel

    Monster of Your Own Making dot Urgh

    So the story is that Scientology was founded when L.Ron Hubbard was sitting around with a bunch of Science Fiction writers and pissing and moaning about being paid five cents per word for Short Stories published in the likes of Analog and Isaac Asimov's Amazing Science Fiction Mag and someone yelled out "Hey, Ron! Why don't you start a Religion and get Rich!!!"

    And so he did.

    Now, plug Justin Bieber and Kanye West into that scenario and let me know when you're able to sleep nights, Hmmmm?

    Maybe rethink this one...FAST...

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