The rise of streaming services in recent years has had a significant impact on the music industry, and electronic music artists are no exception. While streaming services have made it easier for electronic music artists to reach a larger audience and distribute their music globally, they have also brought new challenges when it comes to financial stability.
One of the main challenges that electronic music artists face is the relatively low per-stream rate that they receive from streaming services. According to a 2020 report from the music streaming service, Spotify, the average per-stream rate for electronic music is between $0.0038 and $0.004. This means that for every 1,000 streams on Spotify, an electronic music artist earns between $3.80 and $4.00. While this may seem like a small amount, it can add up quickly for popular electronic music artists with millions of streams.
Another issue that electronic music artists face is the lack of data provided by streaming services. Many electronic music artists report that streaming services do not provide them with enough data to understand how their music is being consumed, which makes it difficult for them to make informed decisions about their career. This lack of data can also make it difficult for electronic music artists to negotiate fair deals with streaming services or other industry professionals.
Additionally, streaming services have been accused of underpaying royalties to artists. A 2018 report by Digital Music News found that many streaming services were significantly underpaying royalties to artists. This is particularly true for independent and lesser-known artists, who are often not able to negotiate favorable terms with streaming services.
As a result of these challenges, many electronic music artists have turned to other ways to monetize their music, such as live events and merchandise. While streaming services may not provide a sustainable income for electronic music artists, these other revenue streams can help to supplement their income and maintain financial stability.
In conclusion, streaming services have had a mixed impact on the financial stability of electronic music artists. While they have made it easier for artists to reach a larger audience and distribute their music globally, the low per-stream rate, lack of data, and underpayment of royalties make it difficult for artists to earn a sustainable income from streaming alone. Electronic music artists have to find different ways to monetize their music to maintain their financial stability. It's important for electronic music artists to be aware of these challenges and to actively seek out other ways to monetize their music and maintain financial stability.