In 2022, ‘Fan-Centric’ Accounting Will Bring Emerging Artists More Money from Streaming Music

Howie Singer, Ph D
Howie Singer, PhD was the Chief Strategic Technologist for Warner Music Group and is now an NYU Music Business Adjunct Professor. He co-founded an early digital music startup and spent the first part of his career at Bell Laboratories. His book entitled “Key Changes: The Ten Times Technology Transformed the Music Industry,” co-authored with Bill Rosenblatt, will be published in 2022.
In 2022, ‘Fan-Centric’ Accounting Will Bring Emerging Artists More Money from Streaming Music

Streaming subscribers and revenues hit new heights this past year. Label valuations climbed. Song catalogs from artists including Bruce Springsteen and Neil Young were purchased for record sums. Yet in the midst of this booming music economy, many artists felt that they were not receiving their fair share of the rewards.

In 2022, that will change. As pressure mounts from fans and rival services that offer a different model for payment, streaming music stalwarts will begin to change how the billions in streaming revenues get divvied up to benefit emerging musicians and bands with the most dedicated fans.

If you thought that the $10 you pay each month for Spotify or Apple Music flows to the artists you listened to most, you’d be wrong. The money each user pays for streaming goes into one big pot. A major portion of those dollars go to rightsholders to cover the use of the recording music and compositions thus establishing the revenue pool for the month.

That pool is then divided up on a “pro-rata” basis using the collective listening history of all users. If half of all plays this month were Adele songs, then Sony Music would receive 50% of the record label share of the pool and would pay her based on their mutual contract terms. The “bottom line” (pun intended) is that the amount of money paid for each play is a result of an algorithm. It varies from month-to-month based on usage patterns. An emerging band unknown to virtually all the hundreds of millions of streaming subscribers might have 100 devoted fans who listen to their songs and only their songs repeatedly. Under the current system, that band would receive almost none of the thousands of dollars their fans pay annually because their listening is outweighed by the billions of plays from all the other users. If every subscriber found this month’s Netflix movies boring and decided to listen to more music instead, that emerging band’s per-play rate would decline.

Suppose instead that every listener’s dollars were divided up according to their listening alone and tallied across all subscribers. The result of this “fan-centric” accounting: That emerging band would receive the lion’s share of the money paid by their most loyal fans.

Soundcloud already allocates payments this way for independent musicians and is negotiating with the major labels to treat the artists they represent similarly. Tidal and the French service Deezer plan to do the same. Major stars like Paul McCartney, Chris Martin and Stevie Nicks expressed their support for a move within the UK to offer more “equitable remuneration” from streaming for all artists.

None of the larger services have indicated they plan to shift from “pro-rata” accounting…yet. Pressure from artists, governments and, most importantly, music fans should begin to change that.

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Greater Good Health Raises $10M To Fix America’s Doctor Shortage

Keerthi Vedantam

Keerthi Vedantam is a bioscience reporter at dot.LA. She cut her teeth covering everything from cloud computing to 5G in San Francisco and Seattle. Before she covered tech, Keerthi reported on tribal lands and congressional policy in Washington, D.C. Connect with her on Twitter, Clubhouse (@keerthivedantam) or Signal at 408-470-0776.

Greater Good Health Raises $10M To Fix America’s Doctor Shortage
Courtesy of Greater Good Health

The pandemic highlighted what’s been a growing trend for years: Medical students are prioritizing high-paying specialty fields over primary care, leading to a shortage of primary care doctors who take care of a patient’s day-to-day health concerns. These physicians are a cornerstone of preventative health care, which when addressed can lower health care costs for patients, insurers and the government. But there’s a massive shortage of doctors all over the country, and the pipeline for primary care physicians is even weaker.

One local startup is offering a possible answer to this supply squeeze: nurse practitioners.

On Wednesday, Manhattan Beach-based Greater Good Health unveiled $10 million in new funding led by LRVHealth, adding to $3 million in seed funding raised by the startup last year. The company employs nurse practitioners and pairs them with doctor’s offices and medical clinics; this allows nurse practitioners to take on patients who would otherwise have to wait weeks, or even months, to see a doctor.

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Plus Capital Partner Amanda Groves on Celebrity Equity Investments

Minnie Ingersoll
Minnie Ingersoll is a partner at TenOneTen and host of the LA Venture podcast. Prior to TenOneTen, Minnie was the COO and co-founder of $100M+, an online marketplace for used cars. Minnie started her career as an early product manager at Google. Minnie studied Computer Science at Stanford and has an MBA from HBS. She recently moved back to L.A. after 20+ years in the Bay Area and is excited to be a part of the growing tech ecosystem of Southern California. In her space time, Minnie surfs baby waves and raises baby people.
PLUS Capital​’s Amanda Groves.
Courtesy of Amanda Groves.

On this episode of the L.A. Venture podcast, Amanda Groves talks about how PLUS Capital advises celebrity investors and why more high-profile individuals are choosing to invest instead of endorse.

As a partner at PLUS, Groves works with over 70 artists and athletes, helping to guide their investment strategies. PLUS advises their talent roster to combine their financial capital with their social capital and focus on five investment areas: the future of work, future of education, health and wellness, the conscious consumer and sustainability.

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