# The Ballad of Music’s Squeezed Middle Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-08-25 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: Exploring Solutions for Middle-Ranking Artists in a Meta Description: Explore the challenges facing mid-level artists due to streaming, pandemic impact on gigs, and discover ways to address the issue in this insightful article by URL: https://financedigest.com/the-ballad-of-musics-squeezed-middlehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/graphicstock-knee-figure-of-young-beautiful-caucasian-woman-listening-music-with-headp-sbi-304229407-1736837976349-compressed.jpg) _By_ **_Russell Sheffield,_** _founder CEO of music sharing app_ [**_Trackd_**](https://trackdmusic.com/) _Takes a look at the plight of middle ranking artists faced with ever-decreasing earnings caused by the move to streaming the impact of the pandemic on gigs and examines some ways to redress the situation._ The popular image of the [music industry](https://www.financedigest.com/musical-instruments-market-insights-deep-analysis-of-key-vendor-in-the-industry-2022-2026.html "Musical Instruments Market Insights, Deep Analysis of Key Vendor in the Industry 2022-2026") is one of polar opposites: the struggling artist sleeping on a friend’s floor and the global superstar with the mansion, the pool, and the fleet of Maseratis.  Despite this image, however, there has always been a thriving middle section of the industry; artists who are neither completely unknown nor household names, making a steady living from their art. Now this community is under threat as record sales dwindle, as a result of the shift to streaming, and other sources of [income drying up with the ongoing impact of the pandemic](https://www.financedigest.com/uk-income-inequality-widens-after-pandemic-dip.html "UK income inequality widens after pandemic dip") on live events and merchandise sales. With streaming [services accounting for 85% of recorded music revenue](https://www.financedigest.com/adding-revenue-through-rd-tax-relief-service-2.html "Adding Revenue through R&D Tax Relief Service") in the US it is safe to say that it is the driving force for music consumption globally. Despite music being widely enjoyed by fans the world over, the revenues for middle ranking artists are paltry compared to earnings from [record sales](https://www.financedigest.com/bentley-cruises-to-record-sales-in-2022-despite-china-drop.html "Bentley cruises to record sales in 2022 despite China drop") in years gone by. Spotify, for example, only pays $0.004 per stream on average. This means to earn just $1; a song has to be played 250 times. Compared to 2013, when CDs still [accounted for 70% of music sales](https://www.financedigest.com/demand-from-retail-food-and-beverages-sector-to-account-for-over-70-of-refrigerated-display-cases-sales-study.html "Demand from Retail Food and Beverages Sector to Account for over 70% of Refrigerated Display Cases Sales: Study"), artists would earn £3.50 (or $4.860) from each CD sale. So, with just one CD sale in 2013 accounting for over 1,200 [plays in today’s music](https://www.financedigest.com/dont-play-second-fiddle-how-disruptor-banks-can-leverage-music-and-audio.html "Don’t Play Second Fiddle: How Disruptor Banks Can Leverage Music and Audio") economy, it’s easy to see why mid-level artists who can’t generate tens of millions of plays, are struggling. The pandemic has, of course, [affected the whole of the music industry](https://www.financedigest.com/are-event-suppliers-being-disproportionately-affected-by-the-coronavirus-and-how-can-the-industry-resolve-this.html "Are event suppliers being disproportionately affected by the coronavirus, and how can the industry resolve this"). Eighteen months without [live performances has hit](https://www.financedigest.com/cost-of-living-in-focus-as-australias-election-race-hits-final-stretch.html "Cost of living in focus as Australia’s election race hits final stretch") artists, labels, venues, and promoters alike. Now that we are back on the road out of the pandemic, tours and venues are being booked again. However, the previous lack of shows has meant that whilst the number of venues has actually [declined with closures during the pandemic](https://www.financedigest.com/demand-for-temperature-controlled-pharma-packaging-solutions-to-reach-over-us-9-bn-by-2030-fmi-projects-a-decline-till-q2-2020-amid-covid-19-pandemic.html "Demand for Temperature Controlled Pharma Packaging Solutions to Reach over US$ 9 Bn by 2030; FMI Projects a Decline till Q2 2020 Amid COVID-19 Pandemic"), the number of artists wanting to book shows has increased exponentially. This has meant that big name artists have been favoured by promoters in favour of smaller or mid-sized artists. These artists are then forced out to smaller venues or less lucrative mid-week slots, reducing their revenues from [live performances at a time when they need](https://www.financedigest.com/living-with-dementia-what-conversations-do-you-need-to-have.html "Living with dementia: what conversations do you need to have?") it most. Due to the [changes in the way](https://www.financedigest.com/artificial-intelligence-change-way-sell.html "Artificial Intelligence Could Change The Way We Sell") that we consume music, many artists have looked to diversify their sources of revenue. Many high-profile artists have brought out lucrative merchandise ranges and the boom in vinyl and cassette sales has given them a [way to make money](https://www.financedigest.com/ways-to-make-money-from-a-website.html "Ways To Make Money From A Website") from physical sales again. But for middle [ranking artists the economies](https://www.financedigest.com/bangladesh-moves-up-the-ranks-and-could-become-the-24th-largest-economy-by-2036.html "Bangladesh moves up the ranks and could become the 24th largest economy by 2036") of scale don’t add up. The [unit cost for relatively low numbers of products makes them prohibitively expensive for the average fan](https://www.financedigest.com/soccer-manchester-united-fans-want-more-say-under-any-new-owners.html "Soccer-Manchester United fans want more say under any new owners"). One way to relieve the [problems of the ‘squeezed middle’ would be to improve](https://www.financedigest.com/bottlenecks-supply-problems-improving-at-abb-robotics-division-board-member.html "Bottlenecks, supply problems improving at ABB robotics division – board member") the deal for artists on streaming sites. Only the top 5% of artists make any [real money](https://www.financedigest.com/u-s-money-reserve-reviews-real-talk-about-diversifying-with-precious-metals.html "U.S. Money Reserve Reviews: Real Talk About Diversifying With Precious Metals") from streaming, earning up to 13% of the money generated. Middle ranking artists earn nothing approaching that percentage and are essentially left high and dry. Increasing that percentage, especially for artists who are not [receiving the levels](https://www.financedigest.com/glastons-interim-report-1-january-31-march-2018-orders-received-grew-23-comparable-operating-profit-at-previous-years-level.html "Glaston’s Interim Report 1 January – 31 March 2018: Orders received grew 23%, comparable operating profit at previous year’s level") of streams of artists with major backing, would dramatically  improve their chances. However, there are currently no plans from any of the major streaming platforms to do so, and relying on dominant players in the music [industry to suddenly develop a sense of fair play has never been a great plan](https://www.financedigest.com/how-the-epa-plans-to-boost-confidence-in-the-uk-payments-industry-post-brexit.html "How the EPA plans to boost confidence in the UK payments industry post Brexit"). We could hope for government intervention. A recent report, compiled by the UK government, spoke of a broken model in the music [industry and has led to MPs calling for radical change in the industry in order to pay](https://www.financedigest.com/best-paying-jobs-in-industrial-specialties.html "Best paying jobs in industrial specialties") artists fairly for their work. I doubt whether artists are holding their breath, but one area [government could help is by pushing for more transparency](https://www.financedigest.com/2016-must-be-the-year-of-board-level-transparency-and-good-governance.html "2016 must be the year of board level transparency and good governance") from the platforms. It is difficult for artists to find out how many [streams they have generated on Spotify and how many ads have been served on platforms](https://www.financedigest.com/lending-stream-builds-leading-edge-credit-platform-with-fico-analytic-software.html "Lending Stream Builds Leading-Edge Credit Platform with FICO Analytic Software") like Soundcloud. And why does it take 90 days for streamers to hand over the [cash to the artists that enable their business](https://www.financedigest.com/europe-burns-cash-to-help-businesses-in-deepening-energy-crisis.html "Europe burns cash to help businesses in deepening energy crisis") model? With government intervention a long way off and pleading for fair play from the streamers being a bit of a long shot, artists increasingly [need to try and wrest back control of their earnings via fan subscriptions](https://www.financedigest.com/why-the-banking-industry-needs-to-offer-more-than-just-enticing-perks-and-subscription-services.html "Why the banking industry needs to offer more than just enticing perks and subscription services"). [Apps such as Trackd use a Patreon style subscription service mixed with the user experience](https://www.financedigest.com/one-app-for-a-total-communications-experience.html "One App for a Total Communications Experience") and discovery features of platforms such as Spotify. [Artists can add their music](https://www.financedigest.com/ed-sheeran-wins-best-artist-as-mtv-europe-music-awards-returns-to-live-format.html "Ed Sheeran wins best artist as MTV Europe Music Awards returns to live format") to their profile behind a paywall that fans can then pay a fee to access. Musicians [retain control](https://www.financedigest.com/companies-are-empowered-to-retain-control-with-alternative-routes-to-liquidity.html "Companies are empowered to retain control with alternative routes to liquidity") and aren’t relying on other parties to be able to sell their music. With 1,000 fans on a subscription-based app, musicians can bring in a solid, stable income that can sustain their creative output. And subscription platforms can deliver a far higher percentage of revenues to the artist, 85% in the case of Trackd. To illustrate some realistic returns; 250 fans subscribing at £2.99/month would deliver to the artist £635 every month.  5000 fans subscribing at £4.99/month would earn the artist £21,208 every month.  This compares well with $1 for 250 streams on Spotify! This is not an either-or situation. Artists can still list their music on Spotify  and YouTube and use those platforms for what they are good at; namely finding new listeners. Then the key is to funnel those new listeners [towards a subscription platform and turn](https://www.financedigest.com/entrepreneurs-worldwide-turn-their-focus-towards-doing-good.html "ENTREPRENEURS WORLDWIDE TURN THEIR FOCUS TOWARDS DOING GOOD") them from listeners into fans. One way to do this would be strategically [limiting the amount of content they put out on say](https://www.financedigest.com/boohoo-says-exposure-to-sterling-plunge-is-limited-finance-chief.html "Boohoo says exposure to sterling plunge is limited – finance chief"), Spotify and offer the true paying fans the complete catalogue, including exclusive content like demos, and remixes. Streaming alone is [fine for discovery but it’s not going to put food](https://www.financedigest.com/the-food-thickening-agents-market-to-grasp-through-the-fine-courses-of-novelty.html "The Food Thickening Agents Market To Grasp Through The Fine Courses Of Novelty") on the table. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---