Sevdaliza, an Iranian-Dutch artist known for her experimental electronic-pop music, has more than a million monthly listeners on Spotify. However, this significant audience does not translate into substantial financial gains for the artist. Despite her success in building an independent career over the past 12 years, she faces financial challenges.
Sevdaliza expressed her frustrations on Twitter, pointing out that on average, one million streams yield approximately $2,500 in payments to an artist. She highlighted that after deducting taxes, management fees, and production costs, sustaining a music career remains difficult. Sevdaliza questioned the sustainability of music production without adequate financial rewards. Her comments followed a viral post by fellow artist James Blake, who also criticized the streaming and music industry for not providing sufficient compensation for artists.
James Blake articulated concerns over the impact of streaming services and labels on musicians’ income. He noted that streaming services do not offer fair compensation, labels demand larger cuts, and touring has become increasingly expensive. Blake’s post resonates with artists struggling to maintain financial stability in the current music industry landscape.
Spotify has reported record growth, adding 31 million premium subscribers in the past year. Despite this growth, the payouts from music streaming services do not compare to the revenue generated from physical album sales. Zoë Keating, in a 2020 interview with Business Insider, shared that her earnings per stream on Apple Music and Spotify were minimal after fees.
The era of streaming poses a significant challenge for independent artists striving to make a living. Nadine Shah, speaking to The New York Times, emphasized the importance of fair streaming income for artists’ livelihoods, especially when many are experiencing financial difficulty. The emergence of a creator economy further complicates the path to success due to intense competition.
Lauren Jauregui, formerly of Fifth Harmony, commented on James Blake’s post, sharing the sentiment that artists feel deprived of their right to be fairly compensated for their work. She argued that the systems in place are exploitative, and popularity is often misinterpreted as success. Sevdaliza responded with her intention to explore the possibility of forming a music artist union to advocate for musicians’ rights.
Spotify informed Fortune that independent artists collectively generated nearly $4.5 billion on the platform in 2023, marking a significant contribution to the industry’s revenue. However, Sevdaliza maintains that the current business model is unsustainable for artists who must sacrifice personal well-being and family presence to pursue their careers. She reiterated her passion for music but expressed concern over the lack of fair compensation.
This article was initially published on Fortune.com on March 6, 2024.
