Streaming Services: A Cure for Piracy, A Nightmare for Music Artistry

Income from advertisement fees can also be crucial for streaming platforms that offer an ad-supported free listening option, such as Spotify and YouTube Music. To compensate for the loss of subscription fees from the free listening option, Spotify and YouTube Music facilitate companies who want to put advertisements and charge them for it. This is reflected in YouTube Music's payout scheme which includes three types of payouts, one of which is a monetization payout of $0.00087/stream (Kormoczi, 2020). 

Thus, it can be concluded that the factors that influence the amount of stream payout to artists are different systems, subscription fees, and advertisement fees. 

Conclusion

In conclusion, the digitalization and continued digitization of the music industry has birthed the rise of streaming services, which has brought both benefits and costs. On the positive side, streaming services have reduced piracy, increased consumer surplus, improve the consumer experience, and reduced the cost of music production. On the negative side, revenues for artists from streaming services still remain a concern. In this essay, we have discussed the determinants of the amount of revenue. However, due to limited data, further research is advised to recommend a concrete solution to address the revenue concern.

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