Music Royalties in the Age of Streaming
The music business and music artistry don’t always intersect happily. You might have heard stories about Billy Joel, Bruce Springsteen, Badfinger, and many others who were so thoroughly screwed by the powers that be in the music industry, that you could be forgiven for thinking, “How could in the world could they have been so naïve?” But I take pity on those whose sole aim in life is to create art and who put their faith in others to look out for their best interests. Hell, I have a background in finance and am pretty adept at investing and tax strategy, but that hasn’t stopped me from being completely clueless about the music business.
Which brings me to a conversation I recently had with my friend Phil, who – like me – has uploaded his original compositions onto DistroKid, a platform that enables you to direct your songs to whatever streaming platforms you choose. It’s a good service and it doesn’t cost much. I’ve been using it since 2017, and I’ve uploaded most of my songs onto Apple, Tidal, Spotify, etc., but I never thought to investigate whether all the streams I’ve amassed (and I say this quite facetiously, because there haven’t been many) have led to some income.
When Phil asked me if I’d made any money through Distro Kid, I said, no, that I wasn’t a member of ASCAP or BMI, the performing rights organizations that collect royalties for artists whose songs are played on the radio, TV, or through streaming services. It’s always been my understanding that membership in one of these companies was a requirement to earn royalties. Turns out not.
“You don’t need to be a member,” Phil said. “DistroKid tracks streams and pays you directly.”
Say what?
That’s right. I’d been paying an annual fee to Distro Kids for nine years without noticing the tab on top of the website that says in big bold letters, “BANK.”
Oops.
Phil showed me the tab and how things work, and when I returned home I logged in and discovered that over the past nine years, my compositions have earned…drum roll please…
$79.08!
That’s right. I am officially a professional musician whose compositions are earning cold hard cash! What’s particularly interesting is that DistroKid actually tracks all the streams for you, so you can see which compositions were streamed, when, and through which specific platform. It didn’t take long for me to realize that my biggest-streaming composition is by far – by a multitude of 1000 – the soundtrack I wrote for my daughter’s short film, Preheated, but because it streams primarily on Facebook/Instagram – who pay artists virtually nothing – it’s only made me 47 cents!
Regardless, I’m thankful that there are people out there who have more of a clue about the music business than I do. Thanks to Phil, I can now pay for approximately 3 hours of health care for my wife and me. I sure hope she appreciates all the hard work I put in for our benefit.