Beggars Group was one of the first labels to talk publicly about splitting streaming income 50/50 with artists, but the company recently confirmed that it’s now lowering the rate due to streaming being a bigger part of its business. Now chairman Martin Mills has been explaining more on the new policy. “A record company such as us, needing to provide the services we do, cannot survive even paying artists 50% of net core income, let alone 50% of gross as we have been doing,” he tells Billboard. “As streaming becomes core income, it has to bear its share of all our costs: A&R, overhead, marketing, promotion, back office services, etc.” Mills says that Beggars artists will now be getting “less than 50%, but significantly more than the regular royalty rate“, although he suggests that the rate could change again in the future: for example if streaming becomes 100% of the market.
Beggars boss Mills explains end of 50/50 streaming rate for artists
July 7th, 2014 by Music Ally Blog