Music label donates all streaming proceeds to artists
Los Angeles, California-based music label Fyrehouse has announced that it is forwarding 100% of its streaming proceeds directly to its artists during the ongoing coronavirus pandemic.
Music artists are canceling their tours in the midst of the global COVID-19 outbreak and many face a dramatic drop in income.
Fyrehouse founder and CEO Miguel V. Solano said, “It’s the right thing to do. In this time of uncertainty, we want Fyrehouse artists to be confident that they can generate income, even when the normal routes of doing so are unavailable.”
Touring brings the majority of income for musicians. However, their tours are being canceled and postponed in the face of the ongoing pandemic and the attempts to limit the COVID-19 spread. Many musicians are unsure of their income or when they will be able to resume their tours.
Solano stated that music labels make billions of dollars each year from streaming, typically taking a majority split home.
Three of the largest music labels – Warner, Universal and Sony – made a combined $6.93 billion from streaming services in 2018, according to Rolling Stone magazine. Digital Music News reported in 2018 that musicians made just 12% of the $43 billion in sales as a result of their US work, including concert tickets, CD sales, streaming music and more.
Solano said that he expects streaming numbers and earnings will grow during the ongoing pandemic as an increasing number of people stay home as the SARS-CoV-2 spreads.
The novel coronavirus is named SARS-CoV-2, which causes the COVID-19 disease.
“As the coronavirus threatens the livelihood of a growing number of musicians, it is not enough to simply tell our artists how much we appreciate their work and how their music is helping us all to cope in this unpredictable time,” Solano said. “Fyrehouse is proud to support our artists in this unprecedented way, and I hope other labels follow suit.”
Solano, an industry veteran with over 10 years of experience helping individuals, music labels and brands maximize their online presences, has sold over 10 million records.
Images via press release
