How the streaming-music boom is screwing over recording artists

$0.000014 per song? Sign me up!

Musician David Lowrey, formerly of the bands Cracker and Camper Van Beethoven, has been on the warpath against the modern music industry – that of Spotify, Pandora and iTunes – for a while now. His blog, the Trichordist, catalogues the exploitation of artists by the new overlords, and acts as a call to arms.

But sometimes, that exploitation is less severe than it looks on first glance.

Yesterday, Lowrey posted a piece titled "My Song Got Played On Pandora 1 Million Times and All I Got Was $16.89, Less Than What I Make From a Single T-Shirt Sale!". It recounts Lowrey's quarterly earnings for the song "Low", a 1993 hit by Cracker which has had an unexpected renaissance due to being featured in the Emma Watson film The Perks of Being a Wallflower.

From Sirius, 179 plays netted him $181.94; FM/AM radio paid him $1373.78 for 18,797 plays; Spotify gave him $12.05 for 116,260 plays; YouTube gave him $1.95 for 152,900 plays; and Pandora paid $16.89 for 1,159,000 plays.

That's a massive difference for Pandora, and it's no wonder that Lowrey writes angrily that:

Right now Pandora plays one minute of commercials an hour on their free service. Here’s an idea! Play two minutes of commercials and double your revenue!

But the story is actually more complicated than that. For one thing, as Lowrey writes, he only owns 40 per cent of "Low", so the numbers are artificially, er, not-high. For another, the royalties schemes Lowrey is discussing only cover songwriting credits. The performance royalties come through a different channel, and can be quite a bit higher.

But the most important difference is that, although all those services are technically "radio" – which is why they are covered by blanket licensing schemes – they are used in very different ways.

Take a look at the price per play:

Sirius 101.6424
FM Radio 7.3085
Spotify 0.0104
Pandora 0.0014
YouTube 0.0012
Service Price per play (¢)

That runs the gamut alright; but there's three clear categories of service in there. The top end plays the same song to thousands of people at a time. Assuming the average commercial radio station has 5,000 listeners, then the price per listener is actually better than it is on Spotify. Sirius pays much more, but it's also national; and so requiring 73,000 listeners to equal Pandora's price-per-user isn't that big of a deal.

The next most valuable is Spotify. That only plays to one user at a time (theoretically), but lets them choose what they can hear. That leaves it more likely to cannibalise record sales, but also offers the chance for an artist to earn more from their die-hard fans.

After that comes Pandora, which is a real internet-radio service; you can't choose what songs play, nor can you skip through too many you don't like. You can, however, adjust the playlist by giving it an artist or genre to focus on, and it will play things like that.

With all of that considered, it's pretty clear who the real rip-off is: not Pandora, but YouTube. It pays less per play than Pandora, even though it lets you pre-select the songs that will be played. And if you spend enough time with children, you'll know that it's perfectly possible to use YouTube as a jukebox, with judicious use of the playlist function.

But the real problem for artists like Lowrey isn't really the exploitation by the music services at all. Instead, it's that it's getting ever harder to get the millions of listeners required to make a living. To get $1,400 for one song on terrestrial radio, Lowrey probably had to win over ten, maybe twenty people who set the playlists for nearly every commercial radio station in the country. To get that much from Spotify, he would have to get 100,000,000 plays – and even if people love the song, that still requires convincing a good million people to click play.

The economics are against him on that one.

Sirius 101.6424
FM Radio 7.3085
Spotify 0.0104
Pandora 0.0014
YouTube 0.0012
Service Price per play (¢)


Photograph: Spotify

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

Photo: Getty
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How the row over Jackie Walker triggered a full-blown war in Momentum

Jon Lansman, the organisation's founder, is coming under attack. 

The battle for control within Momentum, which has been brewing for some time, has begun in earnest.

In a sign of the growing unrest within the organisation – established as the continuation of Jeremy Corbyn’s first successful leadership bid, and instrumental in delivering in his re-election -  a critical pamphlet by the Alliance for Workers’ Liberty (AWL), a Trotskyite grouping, has made its way into the pages of the Times, with the “unelected” chiefs of Momentum slated for turning the organisation into a “bland blur”.

The issue of contention: between those who see Momentum as an organisation to engage new members of the Labour party, who have been motivated by Jeremy Corbyn but are not yet Corbynites.

One trade unionist from that tendency described what they see the problem as like this: “you have people who have joined to vote for Jeremy, they’re going to meetings, but they’re voting for the Progress candidates in selections, they’re voting for Eddie Izzard [who stood as an independent but Corbynsceptic candidate] in the NEC”.  

On the other are those who see a fightback by Labour’s right and centre as inevitable, and who are trying to actively create a party within a party for what they see as an inevitable purge. One activist of that opinion wryly described Momentum as “Noah’s Ark”.

For both sides, Momentum, now financially stable thanks to its membership, which now stands at over 20,000, is a great prize. And in the firing line for those who want to turn Momentum into a parallel line is Jon Lansman, the organisation’s founder.

Lansman, who came into politics as an aide to Tony Benn, is a figure of suspicion on parts of the broad left due to his decades-long commitment to the Labour party. His major opposition within Momentum and on its ruling executive comes from the AWL.

The removal of Jackie Walker as a vice-chair of Momentum after she said that Holocaust Memorial Day belittled victims of other genocides has boosted the AWL, although the AWL's Jill Mountford, who sits on Momentum's ruling executive, voted to remove Walker as vice-chair. (Walker remains on the NEC, as she has been elected by members). But despite that, the AWL, who have been critical of the process whereby Walker lost her post, have felt the benefit across the country.

Why? Because that battle has triggered a series of serious splits, not only in Momentum’s executive but its grassroots. A raft of local groups have thrown out the local leadership, mostly veterans of Corbyn’s campaign for the leadership, for what the friend of one defeated representative described as “people who believe the Canary [a pro-Corbyn politics website that is regularly accused of indulging and promoting conspiracy theories]”.

In a further series of reverses for the Lansmanite caucus, the North West, a Momentum stronghold since the organisation was founded just under a year ago, is slipping away from old allies of Lansman and towards the “new” left. As one insider put it, the transition is from longstanding members towards people who had been kicked out in the late 1980s and early 1990s by Neil Kinnock. The constituency party of Wallasey in particular is giving senior figures in Momentum headaches just as it is their opponents on the right of the party, with one lamenting that they have “lost control” of the group.

It now means that planned changes to Momentum’s structure, which the leadership had hoped to be rubberstamped by members, now face a fraught path to passage.

Adding to the organisation’s difficulties is the expected capture of James Schneider by the leader’s office. Schneider, who appears widely on television and radio as the public face of Momentum and is well-liked by journalists, has an offer on the table to join Jeremy Corbyn’s team at Westminster as a junior to Seumas Milne.

The move, while a coup for Corbyn, is one that Momentum – and some of Corbyn’s allies in the trade union movement – are keen to resist. Taking a job in the leader’s office would reduce still further the numbers of TV-friendly loyalists who can go on the airwaves and defend the leadership. There is frustration among the leader’s office that as well as Diane Abbott and John McDonnell, who are both considered to be both polished media performers and loyalists, TV bookers turn to Ken Livingstone, who is retired and unreliable, and Paul Mason, about whom opinions are divided within Momentum. Some regard Mason as a box office performer who needs a bigger role, others as a liability.

But all are agreed that Schneider’s expected departure will weaken the media presence of Corbyn loyalists and also damage Momentum. Schneider has spent much of his time not wrangling journalists but mediating in local branches and is regarded as instrumental in the places “where Momentum is working well” in the words of one trade unionist. (Cornwall is regarded as a particular example of what the organisation should be aiming towards)

It comes at a time when Momentum’s leadership is keen to focus both on its external campaigns but the struggle for control in the Labour party. Although Corbyn has never been stronger within the party, no Corbynite candidate has yet prevailed in a by-election, with the lack of available candidates at a council level regarded as part of the problem. Councilors face mandatory reselection as a matter of course, and the hope is that a bumper crop of pro-Corbyn local politicians will go on to form the bulk of the talent pool for vacant seats in future by-elections and in marginal seats at the general election.

But at present, a draining internal battle is sapping Momentum of much of its vitality. But Lansman retains two trump cards. The first is that as well as being the founder of the organisation, he is its de facto owner: the data from Jeremy Corbyn’s leadership campaigns, without which much of the organisation could not properly run, is owned by a limited company of which he is sole director. But “rolling it up and starting again” is very much the nuclear option, that would further delay the left’s hopes of consolidating its power base in the party.

The second trump card, however, is the tribalism of many of the key players at a local level, who will resist infiltration by groups to Labour’s left just as fiercely as many on the right. As one veteran of both Corbyn’s campaigns reflected: “If those who have spent 20 years attacking our party think they have waiting allies in the left of Labour, they are woefully mistaken”. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.