2018 Was A Very Good Year For Streaming Royalties
Yesterday SoundExhange released their 2018 streaming royalties totals, and let’s just say it was a big year for the the sector. For the full year SoundExchange took in $953M on behalf of its artist members, a 40% increase over the 2017 total of $683M. What’s even more impressive is their Q4 growth – YoY they were up 116% to $345M in the final three months of the year.
Keep in mind SoundExchange doesn’t collect royalties for the label-direct licensing deals most of the subscription-based streamers pay into. This is just the compulsory royalties in the US from the free tier of Pandora, radio broadcasters’ streams, and Sirius XM.
Over the next several weeks we’ll start to see the record labels’ 2018 revenue totals by channel. It’ll be fascinating to watch just how much of the music industry’s rev now comes from streaming. I’m guessing it’ll be somewhere in the 60-70% range.