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In 2022, the global recorded music industry earned $26.2 billion in revenue, and 65% of that came from streaming. Songwriters contributed to that success.
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It's hard for many songwriters to make a livable wage from the songs they write.
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Songwriters make 15.1% of total streaming revenue in the U.S., while record labels make 52% - 57% and DSPs(Spotify, Apple Music, etc.) make 27.9% - 32.9%.
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The current streaming model operates on a pro-rata system, meaning that the most played songs receive the highest payouts. Consequently, this structure heavily favors popular singles, resulting in a financial disadvantage for middle-class songwriters.
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Sometimes, artists or their representatives receive publishing rights for songs they didn't contribute to, which reduces the royalties received by actual songwriters. While this doesn't apply to everyone, it does occur frequently.
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There have been times when songwriters are strongly encouraged not to attempt to negotiate with artists and labels for a songwriter fee or session fee.
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Songwriters, classified as independent contractors, are denied the majority of the rights of someone self-employed, including receiving payment for their services and having a service agreement.
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