Streaming platforms and the demise of physical copies of music have led to a decrease in the amount of money artists can make from their music.
While we enjoy the ease and relatively low costs associated with having a vast music library available at the touch of a button, it is important to keep in mind that somewhere along the supply chain, the artists themselves may not be receiving fair compensation for their art.
It is not all doom and gloom, as there are digital platforms and online payment systems emerging to offer solutions to the issues of transparency and fair compensation when it comes to the buying and selling of music.
These are helping to change how artists are paid as well as making the creative industry itself more accessible and equitable.
Challenges in the Digital Era
Streaming has revolutionised the music industry, helping to increase the reach of music, and allowing artists to be heard by more people worldwide.
While this is a positive result of technological innovation, it brings along its own set of problems, mainly when it comes to how much artists receive when their music is purchased or listened to.
Digital streaming has impacted the industry, with huge money generated by platforms such as Spotify and Apple Music.
However, this has resulted in concentrated earnings for a small number of the top artists.
Average per-stream payments are around $0.004, and this varies depending on the platform, so it is easy to see how artists who are being listened to regularly are not receiving reasonable payment for their work.
Interestingly, 90% of artists cite streaming as the source of over half of their income, but 68% have seen a decrease in their overall earnings since the rise of streaming.
This has left a situation where a fraction of artists benefit considerably while the rest struggle to make streaming a sustainable source of income.
This issue is further complicated by factors such as algorithms, playlist placements, and genre differences.
Innovative Online Platforms
However, there is hope that these advances in technology can have a positive effect on the issues raised previously.
Platforms such as Artsy and Saatchi Art are emerging as symbols of hope for undervalued artists in the music industry.
These platforms aim to connect artists directly with the end user and establish more lucrative income streams.
There is clear transparency in the payment structures, and this allows artists to see exactly how their earnings are calculated.
This empowers artists while fostering a trustworthy environment. The user-friendly interfaces and robust data security measures allow artists to focus on their craft without the worry of financial exploitation.
Mobile Payment Solutions
Another area of technology that is helping artists get the compensation they deserve is the world of mobile payment systems.
These allow artists to make transactions and manage their finances efficiently while remaining easy to use and transparent.
Providers such as PayPal, Square, Venmo, Stripe, Cash App, and Apple Pay are popular amongst artists for these reasons.
PayPal stands out due to its international presence and comprehensive invoicing features, which enable professional and smooth transactions.
PayPal’s trusted use in online casinos, a financially sensitive area, underlines its trustworthiness and the confidence users have in its security.
These payment solutions enable instant payment to artists, recurring payments for stable income, and allow them to easily keep on top of their financial activities.
They also prioritise security, with features such as two-factor authentication helping to protect transactions.
They also allow artists to offer multiple payment options, which can help clients convenience and increase their sales potential.
Tools for Fair Compensation
W.A.G.E.’s WAGENCY is another tool helping in the fight for fair compensation.
This online calculator allows artists to negotiate fair fees based on their operational costs.
For a small fee, artists sign up as ‘WAGENTS,’ which grants them access to certified fee standards, empowering them to discuss or accept terms with confidence.
WAGENCY is helping to establish minimum payment standards within the industry and is putting pressure on various institutions to work toward fair payment practices.
The commitment of organizations like the Institute of Contemporary Art in Philadelphia, the first museum certified by W.A.G.E., underscores the impact of these tools in setting a precedent for fair artist remuneration.
Conclusion
The integration of online payment systems and platforms has become a driving force in the movement towards fair artist compensation.
By enhancing transparency, security, and accessibility, these tools are helping to empower artists in their fight to claim their rightful earnings and sustain themselves financially.
Although challenges remain, particularly in the streaming sector, the collective efforts of advocacy groups, innovative platforms, and mobile payment solutions demonstrate a significant shift towards a more equitable future for artists.
The focus on fair payment for music is essential for the music industry to survive and continue to grow into the future.
