Detroit Backs Federal Push for Higher Streaming Royalties, Aiming to Boost Musicians' Pay.
The Detroit City Council has unanimously endorsed a federal bill aimed at increasing musicians' pay on streaming platforms. The Living Wage for Musicians Act, introduced by Rep. Rashida Tlaib (D-MI), would overhaul the current system, ensuring artists receive fair compensation for their digital streams.
Currently, music streaming accounts for 84% of all recorded music revenue in the US, but artists often earn just a fraction of a cent per play - sometimes as little as $0.003. To break even, musicians need over 800,000 monthly streams to earn the equivalent of a full-time job with an hourly wage of $15.
Detroit's resolution highlights the city's significant influence on music and underscores the importance of supporting local artists. The legislation would create a new royalty stream paid directly to artists, separate from the industry's existing pro-rata system that often favors bigger acts and major labels.
Under the proposal, a small surcharge would be added to streaming subscriptions, capped between $4 and $10, while platforms would contribute a share of their advertising revenue. The funds would go into a nonprofit Artist Compensation Royalty Fund, which would distribute payments directly to recording musicians.
Advocates argue that this change would enable more artists to record, tour, and engage with fans, while helping musicians build sustainable careers in cities like Detroit. Rep. Tlaib believes the bill is essential for ensuring that music creators can thrive, not just survive.
The proposal has garnered support from various artists, including Shigeto, a Detroit producer and WDET host. With Detroit's creative workforce playing a significant role in shaping music, the city council's endorsement of this legislation demonstrates its commitment to supporting local talent and promoting fairness in the music industry.
The Detroit City Council has unanimously endorsed a federal bill aimed at increasing musicians' pay on streaming platforms. The Living Wage for Musicians Act, introduced by Rep. Rashida Tlaib (D-MI), would overhaul the current system, ensuring artists receive fair compensation for their digital streams.
Currently, music streaming accounts for 84% of all recorded music revenue in the US, but artists often earn just a fraction of a cent per play - sometimes as little as $0.003. To break even, musicians need over 800,000 monthly streams to earn the equivalent of a full-time job with an hourly wage of $15.
Detroit's resolution highlights the city's significant influence on music and underscores the importance of supporting local artists. The legislation would create a new royalty stream paid directly to artists, separate from the industry's existing pro-rata system that often favors bigger acts and major labels.
Under the proposal, a small surcharge would be added to streaming subscriptions, capped between $4 and $10, while platforms would contribute a share of their advertising revenue. The funds would go into a nonprofit Artist Compensation Royalty Fund, which would distribute payments directly to recording musicians.
Advocates argue that this change would enable more artists to record, tour, and engage with fans, while helping musicians build sustainable careers in cities like Detroit. Rep. Tlaib believes the bill is essential for ensuring that music creators can thrive, not just survive.
The proposal has garnered support from various artists, including Shigeto, a Detroit producer and WDET host. With Detroit's creative workforce playing a significant role in shaping music, the city council's endorsement of this legislation demonstrates its commitment to supporting local talent and promoting fairness in the music industry.