Detroit City Council Unanimously Backs Plan to Boost Musicians' Pay on Streaming Platforms
In a move that could have far-reaching implications for the music industry, the Detroit City Council has unanimously approved a resolution supporting the Living Wage for Musicians Act, a federal proposal aimed at overhauling the way artists are paid for digital streams.
The legislation, introduced by U.S. Rep. Rashida Tlaib (D-Detroit), seeks to create a new royalty stream paid directly to artists, separate from the industry's existing pro-rata system that often favors big acts and major labels. Under the plan, a small surcharge would be added to streaming subscriptions, capped between $4 and $10, with platforms contributing a share of their advertising revenue.
The bill aims to ensure that musicians who drive the streaming economy can afford to build sustainable careers, rather than just surviving on meager payments. Currently, artists often earn fractions of a cent per stream, with some earning as little as $0.003 per play. To earn a living wage, an artist needs more than 800,000 monthly streams.
Detroit's resolution highlights the city's significant influence on music, with many renowned musicians hailing from the Motor City. Supporters argue that the legislation could help keep Detroit's creative workforce in the city, rather than driving them out to seek better pay and opportunities.
The bill has gained support from working musicians, including Detroit producer and WDET host Shigeto, who have criticized the existing system for leaving many artists struggling. Advocates say the plan would allow more artists to record, tour, and connect with fans, while helping musicians make a living in cities like Detroit.
With the city's backing, Tlaib reiterates her commitment to ensuring that the people who create music are paid a fair wage. "It's only right that the people who create the music we love are paid a living wage, so that they can thrive, not just survive," she said when introducing the bill last year.
Detroit's decision follows in the footsteps of New York City, which passed a similar resolution in May. As the music industry continues to evolve, it remains to be seen whether this legislation will become law and have a lasting impact on artists' earnings.
In a move that could have far-reaching implications for the music industry, the Detroit City Council has unanimously approved a resolution supporting the Living Wage for Musicians Act, a federal proposal aimed at overhauling the way artists are paid for digital streams.
The legislation, introduced by U.S. Rep. Rashida Tlaib (D-Detroit), seeks to create a new royalty stream paid directly to artists, separate from the industry's existing pro-rata system that often favors big acts and major labels. Under the plan, a small surcharge would be added to streaming subscriptions, capped between $4 and $10, with platforms contributing a share of their advertising revenue.
The bill aims to ensure that musicians who drive the streaming economy can afford to build sustainable careers, rather than just surviving on meager payments. Currently, artists often earn fractions of a cent per stream, with some earning as little as $0.003 per play. To earn a living wage, an artist needs more than 800,000 monthly streams.
Detroit's resolution highlights the city's significant influence on music, with many renowned musicians hailing from the Motor City. Supporters argue that the legislation could help keep Detroit's creative workforce in the city, rather than driving them out to seek better pay and opportunities.
The bill has gained support from working musicians, including Detroit producer and WDET host Shigeto, who have criticized the existing system for leaving many artists struggling. Advocates say the plan would allow more artists to record, tour, and connect with fans, while helping musicians make a living in cities like Detroit.
With the city's backing, Tlaib reiterates her commitment to ensuring that the people who create music are paid a fair wage. "It's only right that the people who create the music we love are paid a living wage, so that they can thrive, not just survive," she said when introducing the bill last year.
Detroit's decision follows in the footsteps of New York City, which passed a similar resolution in May. As the music industry continues to evolve, it remains to be seen whether this legislation will become law and have a lasting impact on artists' earnings.