Oct 112011
 
Image representing Grooveshark as depicted in ...

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Digital Music News posted over the weekend about a topic that is very relevant to all indie artists: streaming payments. Specifically, they were trying to get an answer from Grooveshark (a music streaming service) regarding actual payment amounts to artists/rights holders/etc. Unfortunately, they were unable to garner any sort of number from them, but we can see what SVP Paul Geller had to say in response to their question:

“Right now Grooveshark has money coming in.  I’m curious to know on a granular basis – on a per on-demand stream basis – what is the rights holder receiving?  What is the artist getting, what is the label getting – per stream, per actual song?” – Paul Resnikoff, DMN

“So all of the contracts that we’re doing now are rev-share based, except for those with the PROs.  The PROs get their statutory rates, and so do the publishers for interactive.  And, the rest of them is just a pro-rata share.  So I think that’s the common way to go about it now, I think that’s the only way that you can subsist on this type of money.  And that’s why I think that we have to be creative about how to get more money into this ecosystem, because I don’t think anyone sees those numbers and is really inspired by them, I think people look at them and say ‘well this is a soft landing for the music industry,’ it’s ‘hopefully we don’t have to lay off too many people.’  And that’s why I think that Grooveshark is out there trying to be creative about how to infuse the industry with more money in ways that I don’t think are commonplace right now.” – Geller, Grooveshark

Go over to DMN now to read the rest of Geller’s response. Before you do, please tell me in the comments below what you think about the streaming music payments as they stand right now. Even for artists who are seeing money from this system, the payouts are quite low. Thoughts?

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