A new report from the investment bank reveals that music industry pays musicians poorly and that most of their income comes from touring.
Recording artists received just 12% of the $43 billion that the music industry generated in 2017, according to a Citigroup reportpublished on Monday, and led by analyst Jason B. Bazinet.
The report called ‘Putting the Band Back Together’ by Citigroup, says that despite listeners spending at least $20 billion a year on music in the US – that’s more than ever before – and revenues totalling in excess of $43 billion yearly, musicians themselves are only receiving $5 billion of that figure.
The report anticipates (and is likely to spur calls for more) “organic forms of vertical integration” in the industry, where existing music providers like Spotify and Apple Music could “organically morph into music labels,” allowing artists to capture more of their music’s value by releasing their work directly with the services.
One of the key areas to resolve the problem is to reduce the number of “intermediaries” in the industry, according to the report.
> Shiuly Rina
Musicians Get Only 12% of the $43 Billion which the Music Industry Makes
