Music Streaming: The Good News
So, there is some slightly good news about music streaming for musicians in 2018. The Copyright Royalty Board has adjusted rates for master copyright holders and non-commercial web casters. The increase is to compensate the cost of living rate paid to master recording copyright holders. Each basis point will be $0.0018 for ad supported streams for non-subscription music streams. For subscription services, each point will now carry a rate of $0.0023 per performance. This is good news. However, unless you’re getting about 28 million streams a year – you may want to keep your day job.
In recent studies, Nielsen Music revealed that 90 percent of the population listens to music and on average they spend over 32 hours a week doing so. That’s up 86 percent from the previous annual study, when listening time was averaging over just under 27 hours a week. Nielsen Music also reports that people spend on average $156 a year on music. Although, live performances take a large chunk of that. In the prior year, consumers spent an average of $153.
The Break Down
To break it down a bit, live performances accounted for 54 percent. Buying music, whether it was a CD, download, or gift card totaled to 29 percent. Streaming, 9 percent. Satellite radio, 8 percent.
However, with the exception of concerts – various forms of streaming comprised of 41 percent listening time. That number is up 9 percent over the 2015 result. A closer look at music streamers would show that 58 percent used both audio and video services. Only 31 percent of streamers relied strictly on audio based services and 11 percent used video services exclusively.
Music Streaming: Final Thoughts
Breaking down all of the statistics can be helpful when marketing yourself. While streaming royalties are in fact going up, it still seems the money is in performing. Although, with a well rounded plan it is very possible to sustain a lifestyle as a musician.