Who Gets Paid What On a €9.99 Music Subscription Fee?

Who gets paid what, from a new report by French trade group SNEP (Syndicat National de l’édition Phonographique):

  • Producteurs (labels) = 45.6%
  • plateformes (streaming platform) = 20.8%
  • etat (tax) = 16.7% 
  • Auteurs, compositeurs, editeurs (authors, composers, publishers) = 10.0%
  • Artistes interprètes (the artist) = 6.8%

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10 Responses

  1. Anonymous

    I mean, is it really any different for downloads? Or physical sales?

  2. jw

    How do they figure this? Seems like the split would be different from artist to artist, & it would be difficult to get the details of very many artists’ deals. Certainly streaming companies like Spotify don’t know how the money splits up after they’ve paid the rights holders.

    Is this not just a hypothetical split? Where’s the context? Where’s the rest of the report? What are the assumptions made here? And the unknowns?

    You should consider including relevant links in your articles.

    Regardless, as stated above, this shouldn’t be much dif than the digital download split, outside of any money that would go to blanket licensing fees for sound recordings (i.e. label payments).

  3. BZ

    If they are breaking out the label and artist share separately (since it’d be impossible to know all artists’ contractual streaming royalty rates) it is likely this artist section is for performance income only (similar to Pandora earnings through SoundExchange in the US). So the artist is also probably getting some chunk of the label share through their contract with the label. I don’t think it’s been shown anywhere else that writers/publishers earn more than artists from streaming, so I’d be surprised if what you’re reporting is correct.

  4. Robb

    they can’t possibly have the individual label accountings and the DSP’s don’t pay artists directly for their agreements for sound recordings with labels. the artist fee must refer to some kind of european neighboring right. artist’s share of whatever they are entitled to per their recording contracts must be contained in that 45.6%.

  5. Versus

    How does this work out for self-released titles on aggregators/distributors (CDBaby, TuneCore, etc)?
    The artist is effectively they label in these cases. How does the artist receive the label portion of the pay-out?

    • Faza (TCM)

      If I’m any judge, a self-producing artist distributing through an aggregator receives the sum of label and performer revenue. Composers’ royalties are most likely paid out to collecting societies for distribution, so whether the artist receives their share of that will depend on whether they are part of an eligible society.

  6. Anonymous

    For those of you who read french, the full report is here, very interesting data: http://www.snepmusique.com/actualites-du-snep/bilan-de-lannee-2014/

    The above graph is very confusing though, not sure how to interpret the splits.
    Do the performers (artists) and labels split include neighboring rights paid to their respective neighboring rights collection agencies? Probably.
    If the artist/performer share includes the royalties paid by their label as part of their recording deal, how was this calculated? (is the basis 6, 8, 10%?)
    I guess the share for songwriters/publishers corresponds to what is paid to the french collecting society (SACEM).

    The SNEP report contains some valuable info but this split is unfortunately over-simplified to make it relevant.

  7. jw

    So it seems like Artistes interprètes is essentially a performance royalty, not the artist’s total take home, & that they will also split the Producteurs’s 45.6% according to their deal.

    So a self-released, self-published indie artist would enjoy the songwriter cut, the performance cut, & also the full recording ownership cut, which means 62.4% total.

    That makes the big 6.8% headline seem a wee bit misleading.

  8. Anon

    These numbers must be average because different parties have different agreements with each other and different contractual terms. For example, Universal may have a 50% split of subscriber fees with Spotify while Warner only gets 45%. Within UMG, artist 1 may have 50% split of UMG’s revenues while artist 2 gets 60%. This is of course just a hypothetical, but I am certain there are many, many different of royalties deals between distributors and labels as well as between labels and artists. I can’t read French, so I’m curious how these numbers were derived.

    • JTVDigital

      Being French or reading French does not help much here…
      After checking in the SNEP report I can’t figure out how they ended up to these splits, there are no explanations of the calculation methods.
      I assume this graph / split is a mix of various unrelated sources of income (master recording royalties, songwriter/publisher royalties, neighboring rights…etc).
      This is oversimplified unfortunately and only gives a biased view of things to the public.