What in the World

How do musicians make money?

May 27, 2025
Riyah Collins, a reporter for BBC Newsbeat, dives into the complex world of how musicians earn money. She discusses the challenges they face from streaming platforms and the struggle for fair royalties. Independent artist Mary Spender shares her journey, revealing innovative ways to boost earnings beyond typical streaming. The conversation also touches on the impact of social media and AI on an artist's financial sustainability in today's competitive landscape, along with insights from KenRelBis about his free music distribution platform for Kenyan artists.
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INSIGHT

How Musicians Earn Royalties

  • Musicians earn money through performance, mechanical, and licensing royalties each time their music is played.
  • However, royalties are split with record labels and other rights holders, making earnings complex and often low for artists.
INSIGHT

Streaming Pays Artists Little

  • Streaming income varies widely, with artists signed to major labels earning less than 20% from streaming.
  • Artists need thousands of streams to make significant money, and often receive around 16% after all cuts.
ANECDOTE

Mary Spender’s Independent Funding

  • Mary Spender avoided a 360 management deal and funded her albums independently through YouTube and direct sales.
  • She highlights that streaming pays very little; millions of streams equal a modest income compared to physical sales.
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