US Representatives Rashida Tlaib and Jamaal Bowman have introduced the Living Wage For Musicians Act to Congress, proposing a significant change to the current streaming payment system for musicians.
According to reports from Consequence, Representatives Tlaib and Bowman collaborated with the United Musicians and Allied Workers, along with other artists, to draft this bill. The proposed legislation suggests a minimum streaming payment of 1 cent per stream, a substantial increase from the current standard set by platforms like Spotify, which pays between $0.003-$0.005 USD per stream. Additionally, the bill proposes implementing a cap on tracks once they reach one million streams.
The press release accompanying the bill explained that the royalty for musicians would be financed through platform subscription fees and a 10% levy on non-subscription revenue. The aim is to ensure that artists receive a minimum of one penny per stream, providing them with a living wage from streaming alone. Payments would be distributed proportionally from a central fund, with a cap imposed on individual track earnings to promote a more equitable distribution of payments.
Representative Tlaib emphasized the importance of ensuring fair compensation for artists, stating, “Streaming has changed the music industry, but it’s leaving countless artists struggling to make ends meet… It’s only right that the people who create the music we love get their fair share, so that they can thrive, not just survive.”
This bill comes in response to Spotify’s recent announcement that it will no longer compensate artists for songs with fewer than 1,000 streams. This change would result in minimal earnings for artists, with such songs generating only about 3 cents per month. Spotify justified this policy shift as a measure to combat artificial streaming and ensure a more genuine distribution of payouts to smaller artists.
The introduction of the Living Wage For Musicians Act reflects a growing awareness of the challenges faced by artists in the digital streaming era. By advocating for fair compensation, the bill seeks to support musicians in their pursuit of sustainable careers in the music industry.
