BPI report: More musicians benefitting from streaming

The report shows that about 1 800 artists amassed more than 10 million streams in the UK alone in the past year, representing a 72% increase than the 1 048 musicians who achieved 10 000 album sales, which is the equivalent amount in the CD, LP and download market of 2007. The top 10 artists dominated less of streaming (5%) in 2020 than was the case for CD sales (13%) in 2005. This means that streaming has made the market more ”democratic”.

Global streaming figures show that the top 1 500 artists in the UK generate on average nine times as many streams outside the UK as they do at home, with 300 British artists achieving more than 100 million global streams annually.

Additionally, artists are receiving a higher share of revenues today than in the CD era, typically ranging from 20% to 30% compared to CD rates at 15% to 20%. Based on a typical £9.99 ($13.70) subscription to a streaming service, labels receive gross revenues of about £4.33 and artists get £1.33. Of the label’s remaining share of £3, costs account for £2.49, including A&R and global marketing, leaving a margin of £0.51. The remaining £5.67 goes to VAT, DSPs, publishers and songwriters.

The BPI, which comprises more than 450 independent and major labels, suggests that rather than changing a model that is ‘working well for so many’, the focus should be on continuing to grow revenues from streaming and music consumption for the benefit of the wider music community, including artists and songwriters.

“A generation of new talent is now able to reach a global audience, achieve success and earn a living thanks to streaming,” BPI CEO Geoff Taylor said. “The low barriers to entry for streaming mean that rewards are shared between hundreds of thousands of artists. The most effective way policymakers can support the future success of British music, including its artists and songwriters, is through measures to maximise the total revenues generated from streaming.

”Tampering with a streaming model that is delivering more investment into more new artists, and providing greater consumer and artist choice, risks undermining the competitiveness that underlies the UK's exceptional global success.”

The report comes amid an ongoing UK parliamentary inquiry into the economics of music streaming, where Universal Music Group (UMG) UK CEO and chairperson David Joseph this week suggested that a user-centric licensing model could help struggling artists.