A new study by Citigroup report revealed that recording artists only received 12 percent of the $43 billion that the music industry generated in 2017. The report, led by analyst Jason B. Bazinet, suggested that “two profound changes” in the music industry has affected growth.
First up is the consumer’s decision to sign up for music subscription services — such as Apple Music and Spotify — over buying physical copies. As Business Insider reports, artists take home “a meager share of the increasing revenues in streaming for their music” as a result of music labels and music streaming services acting as intermediaries.
The second change is a knock-on effect of listeners opting to rent music instead of buy, with artists now gaining economic strength in live concerts and music festivals. As music distributors and record labels are economically separate from the live concert business, artists have been able to see considerable growth.
In other news, Kanye West will be returning to ‘Jimmy Kimmel Live!’ this week.