Deezer: It’s an “urban myth” that artists don’t get money from music streaming

Michael Krause, chief international officer at music streaming service Deezer, says that artists and record labels’ complaints about music streaming services aren’t justified.

Speaking at the Hub Conference in Germany, Krause said: “You can see that the revenue percentage for the major labels a large part comes from streaming.

“We also see that the payoff for artists from the record labels is bigger than on the CD side. It’s an urban myth that artists are not getting money.

“Of course it depends on their contract with the record labels, but for example in Sweden they did a study that said while the market was growing 45% the payoff for artists grew to 111%, so it’s definitely good for artists as well.”

Image and featured image courtesy of Deezer

Image and featured image courtesy of Deezer

Krause also spoke about the future of Deezer and said the service will seek out uninitiated listeners rather than competing with bigger music services.

“In terms of Europe, Germany and the UK are obviously the largest countries and the largest music markets to convert from CD sales, mobile downloads and mp3 downloads to streaming.

“The interesting thing about the European market is that in the Scandinavian areas, where our competition started, the penetration of paid music streaming is already over 20%. If you look at the other markets, like Germany, the UK and also France, the penetration of paid music streaming services is still around 3 to 4%, so there’s a lot of room for growth.

“Currently we’re not even competing with Spotify, Apple, Amazon, Google and the others to try and steal users from each other because we are looking for the untapped users who are still downloading mp3s or still downloading CDs.”

Taylor Swift has been one of the more vocal artists to criticise streaming services for not adequately paying artists. Image courtesy of Tinseltown / Shutterstock.com

Taylor Swift has been one of the more vocal performers to criticise streaming services for not adequately paying artists. Image courtesy of Tinseltown / Shutterstock.com

As well as looking to Europe, Deezer also has an eye on Japan where physical CD sales still make up a large part of the market.

Krause said: “There’s still big potential in Japan, which is  very big physical market, so over 70% of revenues from CD sales or CD rentals, there are companies who rent CDs with 50 million active customers, so there’s a lot of potential there.”