Viadrina researchers analyse remuneration in music streaming

The aim was to conduct an independent, scientific study to examine existing and alternative remuneration models in the field of music streaming. Among other things, more than 60 qualitative interviews were conducted with players in the German music industry and a nationwide anonymous survey of around 3,000 music creators was carried out. The study was supplemented by a legal opinion on the transparency of remuneration in the music streaming market.

According to the study, 0.1 per cent of artists accounted for 75 per cent of revenue in 2023, while 68 per cent of artists generated less than one euro in revenue. The remuneration situation is made more difficult by a lack of transparency. According to the study, income from music streaming is difficult to understand and verify, partly due to complex contractual and licence chains, calculation methods and a lack of access to data. Furthermore, the remuneration situation is characterised by the market power of large streaming platforms and major labels. According to the results of the study, over 74 per cent of respondents are dissatisfied with the income from music streaming. By contrast, less than 9 per cent are satisfied.

The research network was funded by the Federal Commissioner for Culture and the Media (Bundesbeauftragte für Kultur und Medien – BKM). Minister of State for Culture Claudia Roth said in a BKM press release: "The study shows where improvements are needed in the music streaming market; if 75 per cent of sales are attributable to 0.1 per cent of artists, that speaks for itself. What is needed is fair remuneration for music creators, more transparency and, overall, a democratisation of market power."

Ulrike Polley