Jeeni Blog

Helping the next generation of talent to build a global fanbase

4 reasons why the current music-streaming model is not working.

/ By Freya Devlin
4 reasons why the current music-streaming model is not working.

The global pandemic has exposed major problems in streamed music. Musicians couldn't tour or give live performances, so they have become reliant on revenue from their recorded music. Now, a shocking inquiry by the UK Government shows that even successful, critically acclaimed artists cannot live off their streaming revenue. But there is an alternative. Jeeni is a platform that puts control back into the artist's hands. On Jeeni, performers and creatives keep 100% of everything they earn, and thousands of artists are already on board, with an audience outreach that has grown to over two million. In fact Jeeni's growth has been so successful that they have turned to crowdfunding to expand their capacity to meet demand, and raised over £61,000 in a few days.

The Government report reveals 4 reasons why the current music streaming model is not working:

1. Even successful artists get pitiful returns from streaming

Fair reward is a performer's right to share in the recording revenues of a song by law, regardless of their royalty rates and their outstanding debts. However, streaming means that performers are paid according to the terms of their record deal. Depending on when they started out in their careers, their royalties can fall to as low as 2%. At Jeeni the artists get to keep 100% of everything they make, no limits.

2. Pay disparity between song and record rightsholders

The current revenue share from streaming gives the record label the majority of a track's revenue. This comes from a model that applied to physical sales, where labels had overheads such as manufacturing, storing and transporting CDs, cassettes and vinyl. This leaves songwriters and publishers with the smallest share of revenue, even though they are vital to the creative process. Music creators and publishers are furious with this model. It's outdated and unfair because these overheads don't apply to digital music production.

3. Just three major music companies control the majority of the market

Digital piracy and new technologies like streaming have disrupted the traditional music industry, and led to a state of play where three major labels now have a 75% share of the UK recording market. They also dominate music publishing, which is the part of the industry that deals with the rights to the words and music of a track.

Jeeni's CEO & Founding Director Dr Shena Mitchell says, "Although technology has moved on, the approach is still the same as the bad old days, where streaming platforms act more like A&R agents and only select the music they like, dictating what listeners get to hear. At Jeeni we are very proud that our vision is based on democracy, where we give all artists the opportunity to post their videos and showcase their talent, for us to market them to a global audience".

'Safe harbour' lets tech companies that host artist's content get away with being criminally and financially liable for copyright infringement. This allows users to consume music for free, and it creates a so-called 'value gap', because revenues for music from ad-funded services are significantly less than those from paid-for services. Here at Jeeni we refuse to take any advertising unless it's by an artist for their own tracks or services, and we make sure our artists retain all copyright and ownership of their own tracks.

If you like the sound of what we do, then check out Jeeni's campaign HERE and join the list of supporters and celebrities who are flocking to the cause. You can invest from as little as £10 to claim your share, be part of the Jeeni success, and say NO to creative performers getting ripped off. *Capital At Risk

10
Aug

Jeeni reaches 50% of funding target in just a few hours.

Within hours of going public on Crowdcube Jeeni hit 50% of its overall £150K target. We launched our public raise at 10am this morning and we have already reached £75K. As you can imagine here at Jeeni HQ we are celebrating. After all our extremely hard work we are delighted that so many investors share our vision. Join them and help us reach our target. Check out our pitch here. https://bit.ly/3BhEeia Jeeni is a fast-growing entertainment company that rewards independent musicians and performers ethically and safely. Our achievements include: Over 4,000 active independent musicians and performersOver 2,300 brilliant artist showcasesOver 2.6million audience outreachOver 10,000 views in less than one hourManagement from senior roles at Apple, Chrysalis Records, Arista Records and EMI MusicGRAMMY-Award Winning ambassadors and supportersCurrent membership and audience growth rate of 4% per monthOver £350,000 raised in previous rounds for less than 10% equity, with a current company valuation of £4.5million We invite you to help us accelerate our success and scale up for the best benefit of our members and investors. Join our fast-growing family of 22 lead investors and over 400 smaller investors, and we look forward to answering any questions you may have. Please check out our pitch here: https://bit.ly/3BhEeia #Jeeni #invest #ethical #alternative #musicians #performers #crowdcube #crowdfunding

10
Jun

Jeeni a more robust music ecosystem for everyone.

The music industry is at a critical inflection point. After years of declining sales and waning fan enthusiasm, the rise of streaming has ushered in a new golden era for an industry that has benefited artists, songwriters, copyright owners, and fans alike. In 2019, streaming was the engine driving revenue growth in the US music industry for the fifth consecutive year. Download the 2020 Streaming Forward report, featuring the latest updates on streaming’s role in the music industry, how digital discovery is elevating new artists and genres, and what we can expect ahead. The Evolution of the music industry over the the last two decades has been staggering. The rise of streaming has revolutionized all facets of music, empowering artists and creators by expanding their access to fans, allowing music listeners to seamlessly connect with their favorite songs whenever and wherever they want, and driving new music choice and creativity. For fans, copyright owners, and creators alike, the positive impact of this evolution has been monumental: with total music stream reaching the one trillion mark in 2019, fans are listening to more music than ever before, and the industry is enjoying a multi-year growth cycle driven by the streaming economy. Over the next seven years the streaming revolution will only grow more powerful. Fast-forwarding we can expect: Forecasts remain just that of the industry's trajectory in the future. While the impacts of Covid-19 are still being felt, and have undoubtedly impacted the music industry, we can expect streaming growth to continue. What we cannot forecast is what new music consumption behaviors might surprise us, and new innovations by the streaming services that we have not begun to see. But with growing optimism and increasing inward investment attracted by the streaming-driven hyper growth, the music industry is experiencing boom times – for consumers,record labels and publishers and most of all creators. Click here to view the 2020 Streaming Forward Report. Click HERE to visit or return to jeeni.com

05
Jun

So what else is the Music Industry doing?

The Musicians Union offer of a £200 grant really is not going to cut it and with most musicians and performers self employed we urgently need the government to provide clarity on what wider support is available. In yesterday's Guardian, Ben Beaumont-Thomas reported that: "On Friday, the Federation of Entertainment Unions, which comprises the Musicians’ Union, the Bectu section of Prospect, Equity, the National Union of Journalists and the Writers’ Guild of Great Britain, called for the government “to introduce an income guarantee for freelance and self-employed workers for the duration of the Covid-19 outbreak.A separate petition to the UK government, asking for economic assistance for those working in the events industry, has been signed by nearly 150,000 people. A huge number of tours and music festivals have already been cancelled because of coronavirus, including Glastonbury and Coachella. Many musicians have started performing via online livestreams, including – as part of the World Health Organisation and Global Citizen initiative Together at Home – Chris Martin, John Legend and Camila Cabello. Other stars have pledged financial support for relief initiatives – Rihanna’s Clara Lionel Foundation donated $5m (£4.2m) to various organisations, while Ciara and her husband, Russell Wilson, donated a million meals to a food bank in their home city of Seattle. The US Recording Academy – which organises the Grammys – announced a relief fund for musicians affected by coronavirus via its charity arm, MusiCares." Let's keep Rocking 'n' Rolling Folks. It is time for positive action!