The Battle Over Royalties: Artist vs Label vs Streaming Platforms
The music industry has never been more accessible to listeners worldwide, yet behind the curtain lies an ongoing battle: how royalties are split between artists, labels, and streaming platforms. At the heart of the debate is a simple but loaded question: what does a fair share look like?
The Current Royalty Landscape
When fans stream their favorite song, they often assume the artist reaps the benefit. But in reality, artists typically see only around 16% of total streaming revenue. The majority is divided among record labels, publishers, and the platforms themselves. For example, out of every dollar earned:
- Labels can claim upwards of 50–60%.
- Streaming platforms keep around 30%.
- Artists are left with a fraction, often depending on their contract terms.
Why the Split Feels Unfair
Artists argue that they are the creative engine behind the product — without music, there is no platform to monetize. Yet labels justify their larger share by pointing to the significant upfront investments they make: recording, promotion, distribution, and career development. Streaming platforms, meanwhile, claim their share is necessary to cover licensing costs, infrastructure, and innovation.
The result? Many working musicians find it nearly impossible to earn a sustainable living through streaming alone, even with millions of plays.
What Would a Fair Share Look Like?
The answer depends on perspective:
- Artists push for higher direct percentages, suggesting splits closer to 50/50 with labels, or even larger portions when they self-release music.
- Labels emphasize their role as investors and risk-bearers, arguing they need substantial returns to continue funding new talent.
- Streaming platforms maintain that lowering their share would stifle growth, innovation, and user accessibility.
Some propose restructuring streaming payouts entirely. Models like user-centric payment systems (where subscription fees are divided based on individual listening habits) could potentially balance the scales more fairly.
The Bigger Picture: Sustainability of Music Careers
As debates intensify, one thing is clear: the current system leaves many talented musicians struggling. The industry must adapt if it wants to sustain creativity and diversity in the long term. Fairer royalty splits, transparent contracts, and innovative payout models could redefine the future of music.
Final Thoughts
The battle over royalties isn’t just about money — it’s about value. Who truly creates, enables, and sustains the music ecosystem? Until artists, labels, and platforms find common ground, the debate will continue to shape the soundscape of modern music.
