Presentation given at the International Communication Association conference in Fukuoka, Japan, June 2016. This paper analyzes the royalties and revenues accrued by recording artists and composers who distribute their work through various online and off-line channels, and considers pending music policy decisions in light of these analyses.

1. TOWARDS AN EQUITABLE MUSIC ECONOMY
Aram Sinnreich, PhD
Associate Professor
American University SOC
ICA 2016
Fukuoka, JP
June 10, 2016
SLICING THE PIE

2. STREAMING MUSIC IS BECOMING THE DOMINANT DISTRIBUTION MODEL
$0
$5
$10
$15
2010 2011 2012 2013 2014 2015
Streaming
Other Digital
Synch
Physical
Global music industry trade revenues. Source: IFPI
(billions)

3. DESPITE (OR BECAUSE) OF THIS, IT’S CATCHING A LOT OF FLAK
“Music is art, and art is important
and rare. Important, rare things
are valuable. Valuable things
should be paid for”
- Taylor Swift
“I tell people condoning
streaming is like condoning
the Chinese that are killing
elephants for their tusks and
carving ivory statues”
- Tom DeLonge
“The old boss and the new
boss have joined hands,
they’re singing Kumbaya, and
they’ve changed the words
to, ‘Fuck the songwriters!
Fuck the performers!’ ”
- David Lowery

4. THE WAY THINGS WERE (2000)
‣ Effective royalty: 6.5%
‣ Chance of payment: 5%
‣ Percentage of professional musicians earning royalties: 0.05% (1:2000)
‣ Effective royalty: $0.03/song
‣ Effective royalty: $0.00011/spin/listener
‣ Effective royalty: 0%
‣ Chance of payment: 0%
‣ Chance of getting played: very small
‣ Cost of payola: $100,000-200,000/ song/week

5. THE WAY THINGS ARE (2010S)

6. THE WAY THINGS MIGHT BE (ROUGH MIX)
PieSize
EquityPie
Blockchain rights/royalties
Fair Play, Fair Pay Act (FM $)
IRFA (FM/web rate parity)
Bypass SoundExchange
Bankrupt/balkanize Streaming
Undermine Net Neutrality/DMCA
Allocation for Music Producers
Songwriter Equity Act (FMV)
?

7. THANK YOU.
ARAM@AMERICAN.EDU
Download this paper:
j.mp/musicpiechapter