Computer Games: Music Streaming Services One of the greatest changes in digital HOW MUCH DO MUSICIANS GET PAID? distribution in recent years – and the There is no one answer to this question. Every service music landscape in general – is the pays a different rate, plus there are variable factors for each individual that include the percentage the label and rise in popularity of music streaming Aggregator receives, and the percentage of the publishing services. and master rights owned.

Music Streaming Services are on-demand music services that However, for comparisons sake, the following is the WANT SOME stream full-length music content over the Internet. Most offer average pay-out per stream for an (anonymous) an ad-supported free service and an ad-free subscription independent label with a catalogue of roughly 1,500 that can include premiere services, such as access on other songs, taken from February 2012 to February 2014. devices. They can also function as a form of social media, Amounts stated are the streaming rates before the allowing you to connect with other users and follow their digital distributor’s cut is taken: playlists and listening habits. Some are website-based only while others have desktop applications. Nokia $0.074 Google Play $0.046 Xbox Music $0.032 Popular streaming services include Spotify, Rdio, Simfy $0.016 GooglePlay, BeatsMusic, Xbox Music, Music Unlimited, Zune, Napster $0.016 Grooveshark, Rhapsody, Deezer, Last.fm, Myspace Music, Medianet $0.0114 Amazon Cloud, Slacker and Pandora. The New Zealand-based Rhapsody $0.0112 SONGS streaming services are iHeart Radio and Rara. Muuve Music $0.00875 18 MILLION Deezer $0.0075 Background Rdio $0.00692 450,000 ARTISTS Spotify $0.00521 As broadband became more popular, many companies Myspace Music $0.00094 OVER 1,500 STATIONS including Apple and Microsoft began to invest significantly Amazon Cloud $0.00012 in streaming media. Services like Napster and Rhapsody (Data taken from TheTrichordist.com) emerged – in 2001 Rhapsody was the first streaming, on- demand music subscription service to offer unlimited access FUTURE OF STREAMING GET THE FREE iHEARTRADIO APP to a large library of digital music for a flat monthly fee – and IN TWO EASY STEPS: video sites such as YouTube and Vimeo became extremely Cloud services from Amazon, Google and Apple will make it popular. simple to purchase what you want and listen to it anywhere you are, without ever having to manage the storage of your Download iHeartRadio from the iTunes App Very shortly after Apple released the iPhone, services library. Your smart phone, tablet and television will all have 1 Store or on Google Play. like YouTube and Pandora became widely available as instant access to all of the music you purchase, and you’ll be convenient, mobile streaming services. The competition able to create a playlist on any Internet-enabled device just from Android and Windows Phone 7 in recent years has as easily as you can in iTunes right now. for your chance to win concert tickets created an ecosystem where consumers can stream the Register 2 and get access to loads of additional features. music and video they want, almost whenever they want. As far as becoming commercially viable for artists, there seems to be a way to go yet. The deficit in global revenue There have been many discussions as to whether artists have created by music piracy has yet to be regained, as streaming benefited from the rise in popularity of streaming services. services have had no choice but to offer themselves for Spotify reports that music piracy has decreased significantly free or charge only-slightly-more-than-free in order to ALL 100% FREE! (with Netflix claiming the same for film and TV). Last year a entice users. Perhaps once the majority of users are paying Norwegian study showed a decrease from 1.2 billion songs subscription fees rather than using the free services (six copied without permission in 2008, to 210 million in 2013. On million of Spotify’s 24 million users pay for the premium the other hand, some artists maintain that the rates paid to service) artists will see more returns on their hard work and FREE THE MUSIC. SHARE THE LOVE. them are so low as to be negligible. investment. WWW.iHEARTRADIO.CO.NZ 16 • NZ MUSIC COMMISSION MAY BOOK 2014 MAY BOOK 2014 NZ MUSIC COMMISSION • 17

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