U.S. Democrats Introduce Bill to Increase Streaming Royalties for Musicians

The Living Wage for Musicians Act aims to make streaming a viable source of income by paying artists a flat royalty fee per stream

Congresswoman Rashida Tlaib and Congressman Jamaal Bowman have recently introduced a new bill that aims to increase streaming royalties for musicians. Titled the Living Wage for Musicians Act, the bill would introduce a new streaming royalty that will pay musicians a flat rate of a penny per stream — so that they are compensated more fairly for their work.

At present, musicians earn significantly less revenue from hosting their work on streaming platforms, even though streaming now accounts for 84% of the U.S. recorded music industry. On Spotify, for instance, the average royalty for a single stream is $0.003 — meaning that artists would need to receive 800,000 streams per month to earn the same amount of money as somebody working a full-time job paying $15 per hour.

As well as adding a small fee to the price of streaming subscriptions, the bill will also tax providers' non-subscription revenues, with the goal of allocating that money to a non-profit collection and distribution fund. Revenue per stream would then be paid directly to artists out of the fund.

Tlaib and Bowman hope that the bill will make recorded music a much more viable career path for mid-size artists, and will allow them to afford their housing costs and raise a family if they choose.

"Detroit is one of the music capitals of the world, and our artists here have changed the music industry and our culture in so many incredible ways," said Congresswoman Rashida Tlaib. "It’s only right that the people who create the music we love get their fair share, so that they can thrive, not just survive."

"I’m very grateful for Rashida’s work to bring overdue changes to the music industry that restore equity and a sense of value for musicians all over," said Detroit artist and WDET radio host Shigeto. "Artists have been taken advantage of since the inception of digital streaming. The Living Wage for Musicians Act gives voice to independent musicians and could potentially change a lot of artists’ lives by giving them a sustainable revenue stream."