Spotify vs Music Artists

How do older media, such as the radio, serve as a template for a Wireless Culture? 

Streaming sites like Spotify are the new era of music, following the great influence that radio has had. It allows users on demand access to their favorite artists right at their fingertips without needing a hard copy or paying for each individual download. Spotify and other music streaming companies are rising fast to combat piracy, but some artists argue that the payout is not fair.EndFragment

I believe that the way artists were paid traditionally through older media forms such as CDs and especially the radio has served as an example for the newer streaming industry to pay artists. Artists used to get paid much more for a play on the radio or for a CD sold than the fraction of a cent that they receive with a listen on a streaming site like Spotify. 

The biggest problem with the math battle going back and forth between streaming sites and artists is that the radio play would go out into the public for any listeners to listen to for free, whereas streaming sites leave the song at the free will of the on demand user. Because this has never been an option for consumers before and the closest to it was when they paid for each individual download of a song, artists and streaming sites are caught in a tug of war over the revenues. 

Another factor from the radio industry that is not incorporated into streaming sites is Performance Rights Organizations or PROs. Radios would actually pay fees for music directly to PROs who would then take care of the distribution to artists, songwriters, and labels. This is because a play on the radio is considered a public performance since listeners to not pay to hear the song. While a user paying for a Spotify subscription and listening to a song directly through their head phones is far from a public performance, maybe a third party similar to a PRO could be the answer to this battle.

Sources:

Bacle, A. (2014, November 3). Taylor Swift vs. Spotify: A timeline. Retrieved February 28, 2018, from http://ew.com/article/2014/11/13/taylor-swift-spotify-timeline/

Consor, K. (2014, August 6). What You Didnt Know About Radio Royalties. Retrieved February 28, 2018, from https://blog.songtrust.com/publishing-tips-2/what-you-didnt-know-about-radio-royalties

Forde, E. (2013, July 15). Spotify row: how do musicians make money? Retrieved February 28, 2018, from https://www.theguardian.com/music/shortcuts/2013/jul/15/spotify-musicians-money-thom-yorke

Haynes, A. (2017, May 12). How Does Spotify Make Money? (NFLX, AAPL). Retrieved February 28, 2018, from https://www.investopedia.com/articles/investing/120314/spotify-makes-internet-music-make-money.asp

 Singleton, M. (2017, June 15). Spotify now has 140 million active users. Retrieved February 28, 2018, from https://www.theverge.com/2017/6/15/15807826/spotify-140-million-active-users