At this point, we all know that streaming royalties have become a larger and larger share of revenue within the music industry, but how those royalties are calculated by DSP’s is still somewhat of a mystery to artists, labels, and consumers. For example, why doesn’t your $9.99/mo. only go to the artists you’ve streamed that month? And, why do the per-stream rates fluctuate so much, based on time of day, the specific plan you’re on, etc.? On this episode, we talk to Vickie Nauman and Louis Posen about the “pool method” of royalty calculation (currently in use by most DSP’s), and alternatives to this method that are being proposed by some, and piloted by others.
Called “music’s monetization mystery” by Forbes, on today’s episode we shed light on the “black box” — a complicated phenomenon in the music industry where small and large sums of money don’t make it to an artist. What happens to these unattributed royalties and how can musicians safeguard their income? We ask CD Baby CEO Tracy Maddux and CrossBorderWorks’ Vickie Nauman for insight.