Who Benefits From Royalty-Free Music?
Today’s insatiable thirst for content is driving music from being cheaper than it has ever been to nearly free.
Content Need Content
In content creation, music plays a significant role in setting the tone and enhancing the final product. Content creators who do not create music must source that music for their videos. Improperly sourcing music for video content can lead to DCMA claims and other takedown notices, leading to legal issues and maybe even financial ramifications. With a surge in content demand in recent years, there have been many new options for creators to source music for their content, including rising interest in royalty-free music - meaning music that requires no ongoing royalties or licensing fees.
This has presented artists and musicians with an opportunity to create royalty-free music for marketplaces. But, while this approach might create short-term financial gain, it leaves the artist with zero up-side participation if the content it is used in gains viral traction. Put more plainly, the artists will not see any more money other than a one-time and often meager fee - and they likely won’t receive written credit, gain followers, or be able to perpetuate their music career off that success.
Big Tech > Content Creators > Artists & Musicians.
The booming content creation space is helping drive down the perceived value of music. The popularity of royalty-free music has been steadily increasing, with a 20% growth in usage reported in the past year. While it would be easy to point the blame at individual content creators, it's the social media giants that stand to gain the most. YouTube alone experienced over 30% growth in revenue in the past four years - with a 46% boost alone from 2020 to 2021.( Source: DemandSage) More content = more ad revenue. Big tech stands to gain from more content with less need to account for copyright.
With the introduction of Apple, Spotify, Amazon, and more into the music ecosystem in the last 25 years, music has experienced a near-cataclysmic decrease in its actionable value. Yet, we’ve also seen incredible new tools and opportunities. But if those tools ultimately only allow artists and musicians to monetize their music for less and less value, who stands to gain?
