Amid the current tension that hovers around music streaming sites, US site Bandcamp has now reported staggering artist payment figures. With musicians and industry figures clamouring for better revenue and ethical agreements from other services like Spotify and Soundcloud, the reported US $150 million in artist payouts from Bandcamp must surely hit home.
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Having remained largely separate from the big name platforms, Bandcamp has been primarily committed to independent artists and labels since it’s launch in 2008. Eight years on, the site is still finding success as an alternative to other services, without the influence of major industry players. Bandcamp has also sustained what it calls a transparent, artist-friendly business model in terms of its fees and profit sharing. The site takes a 15 percent cut on digital items (10 percent after $5,000 in annual sales) and 10 percent on physical goods such as vinyl, cassettes and t-shirts, which can all be sold side-by-side on the platform.
The reported figure of $150 million was calculated as of April 6th this year. Which, interestingly, is the same amount that Spotify was originally asked to pay out last year, in damages for unpaid royalties to artists. Admittedly, Bandcamp may not be dealing with as many major industry labels and publishers, after which follow major fees and negotiations. But the more ethical approach from the site has clearly paid off. Bandcamp have also stated that the site has been both self-funded and profitable since 2012. Something which pretty much none of the major services have achieved, or even come close to.
Image: Bandcamp