Could a living wage finally be on the way for musicians in the US?
US politician Rashida Tlaib plans to reintroduce the Living Wage for Musicians Act in US Congress on September 29.
Back in the spotlight
The fight for fair pay in music is heating up again. US Representative Rashida Tlaib is set to introduce the Living Wage for Musicians Act (LWMA) to Congress on September 29. The bill was originally co-introduced by Tlaib and former Congressman Jamaal Bowman last year, but didn’t pass the first time around.
A lot has changed since then. Thousands of artists, musicians, labels, and organisations now back the proposal, according to the United Musicians and Allied Workers (UMAW). Even the New York City Council pledged their support for the act earlier this year. With this newfound (and significant) momentum, perhaps the LWMA might just pass this time.
How the bill works
At its core, the LWMA is about creating a new royalty that pays artists directly. Instead of money filtering through labels or streaming platforms, musicians would get at least one “penny per stream” on top of their existing royalties, paid straight to them.
How would that work? The bill proposes a 50% levy on music streaming subscriptions in the US, plus a 10% levy on ad-supported streaming revenues. For example, a $11.99 monthly premium subscription would rise to $17.99. The extra $6 would go into a new Artist Compensation Royalty Fund.
From there, the money would be distributed directly to featured and non-featured artists based on their share of streams. There is a cap on this though. The payouts are limited to one million streams per month. Anything over that amount gets redistributed to other artists. The idea is to make sure the system doesn’t just reward megastars but also helps smaller, independent musicians build sustainable careers.
“Money exceeding this cap (as it stands, 1,000,000 streams for a track in a month) will be used to increase the payout per stream for all recording musicians.“
United Musicians and Allied Workers
Before you think this is too unrealistic, it is actually possible. UMAW points out that a similar model already exists through SoundExchange, which handles royalties for satellite radio and internet broadcasters in the US.
Still confused? You can see how the system works and how much money you could be earning per month thanks to the calculator on the UMAW site, here.
Importance for artists
The bill isn’t just about squeezing a little extra cash out of streaming. It looks to fix the deeper flaws in the current system:
- Instead of cutting the same music revenue pie into thinner slices, it makes the pie bigger.
- It shifts focus away from major labels and megastars by putting money in the hands of working musicians.
- It opens doors for more diverse voices to actually make a living from their art, rather than just those with the financial freedom to make music.
- Fans can feel good knowing their money is going directly to the artists they love, and not the CEOs of the streaming platforms and record labels.
And it doesn’t stop there. With better pay, artists could afford to tour more, hire crews, and help drive economic growth way beyond just the music industry. UMAW is quick to stress that the LWMA isn’t a singular fix, but it is a major step toward revaluing the arts properly in society.
The expected pushback
Of course, not everyone is cheering. Streaming platforms, labels, and rightsholders will likely push back hard. Just take a look at Canada who have already rejected a far smaller 5% levy.
There’s also the risk that higher subscription prices could cause listeners to unsubscribe. Fewer subscribers could mean less money in the industry as a whole, instead worsening the existing problems.
Looking ahead
All eyes lie on September 29, to see what exactly the bill will encompass when it is reintroduced to Congress. For now, the LWMA is putting the spotlight back on one of the industry’s biggest issues: fair compensation for artists in the streaming era.
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