The whole thing smacks of a way to return more money to the infrastructure owners and less to the content creators.
I'm seeing new gains in streaming volume on the artists I manage, with ridiculously low dollar returns. With iTunes sales we could actually make a reasonable amount - not going to happen if the "norm" become streaming.
Should be the last step to completely commoditizing music.
You are mistaken.
In the Music Industry, there are three tiers where money goes:
- Infrastructure Owners = Music Labels who own the copyright to the performed song recording.
- Content Creators = Song Writers who owns the copyright to the printed song.
- Performers = Musicians who are employees of the Music Labels.
If an individual (such as Prince) exists at all three levels, he or she makes the most money.
If an individual writes the song, he or she gets a predefined cut of the money.
If an individual is a performer, then he gets paid by the Music Label one time for the performance of the song, but not for any further use of the recording of the song.
In the age of digital music and streamed music, it is very easy for individual to simply create their own music label, write the song, perform and record the song, then sell it themselves through iTunes and other venues.
Obviously the larger labels have more power since they have the money to actually advertise and market world-wide the music so they can sell even more copies than the smaller labels. But that is true in any industry.
If performers complain about how little money they make, then get smarter and move up to and include the higher paying income tiers. And if you are in all three, you make the most money.
Apple's iTunes Radio pays pretty well. If an album's songs are heard by about 600 people, it makes the same in streaming fees as selling one album on iTunes. With 250 million iTunes accounts, this means the possibility of earning the equivalent of selling over 400,000 albums if every iTunes account holder simply just heard the album's songs once on iTunes Radio, more so if they heard it twice or more.