Drama is about on Twitter as many artists are beginning to speak up concerning their perception of internet advertising commissions. The typical CPM's (cost per thousand impressions/plays) is upsetting artists, such as below where Bette Midler roasts Pandora and Spotify for their poor royalty structures.
Artists should definitely receive more compensation than they are for their streaming plays on satellite, internet, and traditional radio, seeing how they are the material that is filling up the platform and drawing attention, all in the name of selling advertisement spots.
Midler states that over three months she saw a resurgence in popularity, where on Pandora alone she garnered over 4 million plays. Her compensation? Just over $100.
Selling songs on iTunes and Amazon and fetching 30 cents per sale was insulting enough. We are choking the incentive to create art at this rate. While Ms. Midler should definitely strike while the iron is hot and launch a new tour (where artists have always traditionally gained the largest portion of their income), one of these companies should step up and offer exclusive deals for much higher commissions.
Perhaps Jay-Z and Aspiro will save the day?
Jay-Z, if you have it in your heart to pay fellow musicians more than $0.00002733076 dollars per stream, you can most likely add to your wealth in a major way. You'll have greats like Bette Midler, Thom York, Steven Tyler, and Taylor Swift all jumping ship in a heart beat to join your team. Padding your wallet in the short-term is not the way to growing true wealth, as Jay-Z knows. Save us, Jigga!
According to information reported by Billboard.com, Pandora posted a $638.9 million dollars in revenue in 2013. It is stated that Pandora paid $342.9 million of that money in music royalties only.
So the question really becomes "Since Pandora is obviously paying a large chunk of money, who's really holding all the earnings and giving artists the crumbs?"
I think we know the answer to that. *cough* record labels *cough* Somethings will never change.