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streaming platforms

Which is the Fairest Music Streaming Platform in 2024?

Posted on 11 April 2024

Just when you thought that Spotify couldn’t sink any lower, the evil incarnate streaming platform has recently implemented new rules that are set to significantly alter the distribution of royalties within the music streaming industry. These changes, aimed at supporting ‘working artists’, involve the elimination of payments for tracks that receive fewer than 1,000 plays annually. This move is part of a broader effort to crack down on what are termed as “junk tracks”. The overarching goal of these policies is to redirect royalties away from less popular streams and towards artists and labels that are deemed more ‘legitimate’. Artists who struggle to surpass the 1,000 stream mark will take the labelling of their music as “junk tracks” as the ultimate blow and will undoubtedly want to take their so-called “junk tracks” elsewhere.

This strategic shift is expected to channel an additional $1 billion to working artists over the next five years, which seems like a noble endeavour, but the development raises several questions about the fairness and impact of such policies on the music streaming landscape.

Which is the Fairest Streaming Platform in 2024?

In light of Spotify’s recent policy changes, a discussion on the fairness of streaming platforms in 2024 is necessitated. Spotify’s initiative to shift more revenue to ‘working artists’ is a significant move, but it also brings into question the criteria used to define a ‘legitimate’ artist or label.

How do these changes affect smaller, independent artists who might not hit the 1,000 plays mark but still contribute valuable content? Additionally, how do other streaming platforms compare in terms of supporting artists fairly? Are there platforms that offer better opportunities for emerging artists, or are the bigger players like Spotify setting a new standard for the industry?

Before we give our view on which is the fairest streaming platform in 2024, here are some key factors to consider when assessing the fairness of music streaming platforms:

Royalty Payments: Platforms that offer higher royalty rates to artists are generally seen as more fair. Look for platforms that have transparent payment models and are known to pay artists a fair share of the revenue generated from their music.

Support for Independent Artists: Some platforms offer better support and visibility for independent artists. This can include promotional opportunities, playlist inclusion, and tools for engaging with fans.

User Base and Reach: A platform with a large user base can provide more exposure for artists, but this should be balanced with how royalties are distributed among artists.

Artist Control and Rights: Platforms that allow artists more control over their music, including rights management and the ability to set their own pricing, can be more appealing.

User Experience and Discovery Features: Platforms that have robust music discovery features can help lesser-known artists gain exposure. This includes algorithm-driven recommendations, curated playlists, and social sharing capabilities.

Additional Revenue Opportunities: Look for platforms that offer artists additional ways to earn revenue, such as through merchandise sales, concert tickets, or exclusive content.

Community and Engagement Tools: Platforms that provide tools for artists to engage with their fans, like direct messaging, live streaming, or community features, can help build a loyal fanbase.

The 6 Best Spotify Alternatives for Independent Artists in 2024

Nina: This open-source platform stands out for giving artists total freedom and ownership of their work. Artists receive 100% of royalties with no ongoing fees after a one-time transaction fee. It supports MP3 and WAV formats and offers a discovery feed and editorial features.
Bandcamp: Known for supporting underground music discovery, Bandcamp allows artists to receive 100% of revenue on Bandcamp Fridays. It offers a DIY user experience and focuses on new music discovery through its editorial section.
Apple Music: With a royalty rate of $0.01 per stream, Apple Music offers better payouts compared to Spotify. It features lossless and spatial audio supported by Dolby Atmos and has over 100 million songs.
stream: Co-founded by Laura Jaramillo and TOKiMONSTA, this platform uses Web3 technology for fair artist compensation. It emphasises decentralised permission for AI-generated music and offers biweekly streaming royalties payouts.
Tidal: With a royalty rate between $0.0125 to $0.015 per stream, Tidal is artist-centric and offers high-quality audio and exclusive music content.
SoundCloud: This platform is ideal for up-and-coming artists and features a fan-powered royalty system. It allows artists to upload and promote their music directly to a global audience.

Alternative Revenue Streams for Independent Musicians

No streaming platform should be the cornerstone of your revenues. In an ideal world, Spotify and other platforms in the same vein would allow more artists to earn a living wage, but it is unlikely that will ever be the case. Rather than lamenting over the exploitative nature of such services, which artists can do until the cows come home and get absolutely nowhere, it is crucial to explore alternative revenue streams.

Patreon allows musicians to receive funding directly from their fans, or patrons, on a subscription basis. Artists can offer exclusive content, early access to new songs, and other unique perks to their subscribers. Alternatively, you can ask fans to Buy You a Coffee.
Bandcamp: Known for its artist-friendly model, Bandcamp allows musicians to sell their music and merchandise directly to fans. The platform is particularly popular for its Bandcamp Fridays, where it waives its share of sales to benefit the artists.
Radio Play: Getting your music played on the radio can still be a viable source of income. Each play generates royalties, which are collected and distributed by rights organisations.
Sync Deals: These are agreements where your music is used in film, television, advertisements, or video games. Sync deals can be a significant source of income and also offer exposure to new audiences.
Physical Sales: Selling physical copies of your music, such as vinyl, CDs, or cassettes, can be profitable. Physical sales often attract collectors and fans who want a tangible connection to the music.
Merchandising: Selling branded merchandise like t-shirts, hats, or posters can be a substantial income source. Merchandise sales are often most successful in conjunction with live performances or as part of an album release.
Live Performances: Performing live is not only a way to earn income through ticket sales but also an opportunity to sell merchandise and physically connect with your fanbase.
Crowdfunding: Platforms like Kickstarter or Indiegogo allow artists to fund projects through direct support from fans. This can be a way to finance new albums, tours, or special projects.
Licensing and Royalties: Registering your music with rights organisations ensures you receive royalties whenever your music is played in public venues or broadcast. This can provide a steady income stream over time.

By exploring these alternatives, independent musicians can diversify their income sources and reduce reliance on streaming platforms, which often offer lower payouts. Each option presents unique opportunities to monetise different aspects of a musician’s work and fanbase engagement.

Article by Amelia Vandergast

What Will Replace Spotify?

Posted on 12 December 2022

Every year when Spotify Wrapped rolls around, the social media posts highlighting the exploitation and unfair revenue for artists are quick to follow. This year, the laments came early after many Spotify users posted their Instafest line-up posters, generated by a third-party app from data based on users’ recent Spotify history.

While many people within the music industry are quick to tear into the streaming service, there is a distinct lack of voices pushing the conversation further and suggesting how we can move beyond the exploitative practices of the platform.

Every decade, there has been a reformation in how we consume music. In the 70s, vinyl records were the popular music formats; in the 80s, cassettes increased in popularity; in the 90s, CDs resolved the issues from the previous two formats; in the 00s, mp3s started to digitalise music before streaming platforms became the most popular way to consume music.

In this decade, it is becoming increasingly less likely that we will see the introduction of a new superior format – regardless of how many artistic voices join the chorus on how the streaming format is obliterating their chances of financial stability and security. The lack of drive for innovation mostly boils down to the convenience and accessibility of music for music fans. For just £9.99 a month, Spotify users have access to most of the music recorded since the 60s.

Of course, the fact that the major labels and publishers are still getting a massive slice of the streaming royalty pie is yet another monolithic factor in the stagnation of progression.

Are Alternative Streaming Platforms the Solution?

Amazon Music, Apple Music, Deezer, Pandora, Tidal and YouTube are all often hailed as alternatives to Spotify, but the highest paying, Tidal, still only pays around $0.013 per stream. Furthermore, the platform only has 5 million registered users, compared to the 195 million premium subscribers and the 422 million monthly users on Spotify.

New streaming platforms will not resolve the issue that Spotify is presenting to artists in the music industry. In 2021, Spotify paid $7 billion in royalties; the real issue is that the bulk of that cash doesn’t end up in the pockets of artists, because, despite popular conception, Spotify doesn’t pay its artists directly.

The money goes to the rights holders, publishers, and distributors before artists sniff the cash. So, in 2021, *only* 52,600 artists generated $10,000 or more via the platform. It is easy to blame Spotify for the current state of affairs. However, that is letting the major record labels and publishers still profiteering off the back of musicians off the hook.

Spotify is Reigning Supreme, But Other Revenue Streams Are Still Flowing

At this point, crying about Spotify not being able to pay the rent for all of the 11 million artists on Spotify is like shedding tears over the fact that you can’t get blood from a stone. Furthermore, it is misleading to suggest that streaming platforms are the only source of revenue for artists in 2022 or that streaming has completely replaced album sales.

In 2021, music fans paid $1.04 billion to artists via Bandcamp by purchasing 14.7 million albums, 8.2 million singles, 1.8 million vinyl records, 850,000 CDs, 400,000 cassettes and 150,000 t-shirts.
$5 billion was spent on music rights acquisitions in 2021, and in 2022, that number is expected to increase.
Physical album sales rose 37.5% in 2021 from the previous year, with 38 million units sold.
On average, touring accounts for 25% – 28% of an artist’s income, and when artists are on tour, they can supplement their income by a further 35% by selling merch.
Most Patreon campaigns allow artists to earn $25 – $100 a month, while crowdfunding can help finance the production of new albums.

It isn’t my intention to insinuate that every musician has the chance to rake in as much as the Rolling Stones by operating as an independent artist. What I’m alluding to is the fact that Spotify isn’t the only means of generating income in 2022. If recording an album and whacking it up on Spotify is the extent of your effort to create a viable income through your music, you’re not going to get far.

As the pandemic proved, most artists without a day job can only support themselves by heading out on tour, selling their merch and gaining new fans that will be happy to further invest in their careers. Even if you are the next big thing since the Beatles, fame and fortune aren’t just going to land on your doorstep; if you want it, you have to work for it. Only industry plants blow up overnight, don’t use the success of Taylor Swift and Billie Eilish as a measuring stick!

The music industry is incredibly oversaturated due to its accessibility in this era. Now, it is impossibly easy to create a lo-fi recording at home, stick it up on streaming platforms, call yourself an artist and expect the royalties to come streaming in. It is in no way realistic to expect that every artist contributing to the music industry will be balling from their artistry.

Everything may be a commodity in our era of late-stage capitalism but there has never been an industry which gives everyone the equal opportunity to bankroll themselves based on their passions.

This unrealistic and mercenary view is abstracting the beauty of 21st-century technology, which gives every artist the chance to express themselves and share their art with the world. That isn’t to say the population will be falling over themselves to hear it; what it does mean is that more artists have the chance to make a cultural impact with their art than ever before. And as we have seen that there is no easy way out of the digital era of music; it is vital to maximise income revenues away from platforms such as Spotify.

Create merch your fans will want to part with their hard-earned cash for. Push for physical sales on Bandcamp Fridays. Promote your music online. Be willing to tour with your music. And if that doesn’t yield any results, get inventive and check out this list of 42 ways to finance your career as an artist!

Article by Amelia Vandergast