Making Money from Streaming: Benefits and Barriers in the Music Industry

Abstract This chapter studies the transition from music ownership to streaming-based access. I examine how streaming changes revenue distribution. The chapter contrasts the dominant pro rata model with the user-centric model. The latter allocates individual fees to artists based on personal listening habits. Key challenges include streaming bots, non-music content, and per-play biases disadvantaging longer tracks. The chapter goes into discussions around distribution, fairness, and efficiency. It also touches contracts, payment delays, and transparency as pressing issues. The chapter also reflects on the applicability of these discussions to other cultural goods, such as video and audiobooks.