It's official: streaming is an important part of the music industry. In fact, it recently overtook CDs in overall revenue making it the business model to beat. However, not everyone is happy with this change in the way business is done. Take, for example, Taylor Swift, who very publicly removed her music from streaming services with an annoying message, and attacked Apple when they re-launched Beats Music as Apple Music.
This week, a new voice in the debate was revealed. You have likely never heard of Kevin Kadish, but you were unable to avoid his 2014 megahit All About That Bass, which he co-wrote with author Meghan Trainor. He said at a roundtable discussion at Belmont University and led by the House Judiciary Committee, that he received just $5,679 for 178 million streams of the song. That works out to about $32 per million streams.
So, why was Kadish there, speaking to members of the US Congress? Because, for reasons beyond any rational comprehension, they set the rates for what is paid per play. Yes, you read that right - the rate is not negotiated with the artist or with the publisher as it is for Netflix or Hulu, but instead is a set rate decided upon by the federal government. As a result, for the height of this guy's career, he was paid essentially nothing.
These laws date back to 1911, when music was distributed on piano rolls, and in fact the industry term is still "mechanical licenses" in reference to those automated pianos. Kadish, along with others, believes that a law like this is not only outdated but ridiculous, and has urged Congress to do away with it. In its place, he is asking for the Songwriter Equity Act to be passed, that would establish a "fair rate standard" for these licenses.
It seems surprising that these musicians are still asking that their rate be regulated, as opposed to allowing their representatives to negotiate on their behalf. I guess the musicians believe that they are worth more than $32 per million plays, but not enough that they should have a say. No wonder Netflix, Hulu and Amazon have no issues with their business and music services seem to be under constant fire.