An article in The New York Times reports that while webcasting is growing in popularity, the artists who produce the content are being left in the cold.
The article notes, “From 78 r.p.m. records to the age of iTunes, artists’ record royalties have been counted as a percentage of a sale price. On a 99-cent download, a typical artist may earn 7 to 10 cents after deductions for the retailer, the record company and the songwriter, music executives say. One industry joke calls the flow of these royalties a ‘river of nickels.’ In the new economics of streaming music, however, the river of nickels looks more like a torrent of micropennies.”