The music industry is booming, but artists are losing big with just 12% of the revenue, report claims

Maeve McDermott | USA TODAY

A disturbing new music industry statistic claims that artists only got 12 percent of the $43 billion the industry generated in 2017, according to a new Citigroup report published this week.

According to the report, the industry's $43 billion year was its most profitable since 2006. Listeners are spending more money than ever before, largely on streaming and live music, with consumer spending totaling more than $20 billion last year.

Yet artists aren't feeling that increase. Of that $20 billion, music business entities such as record labels took home $10 billion, with musicians taking home just $5.1 billion – the majority of their revenue coming from touring and concert sales.

Why? As middlemen including labels, radio companies and streaming services step in to sell and distribute music, they each take cuts of the profits, siphoning revenue away from artists.

Yet it's not all bad news. The report points out that the piece of the revenue pie that artists receive has actually grown over the past few decades, rising to 12 percent from just 7 percent in 2000 as artists explore routes like self-releasing their music. While 12 percent is still an eyebrow-raising number, the report predicts the artists' cut will continue to rise as the industry continues to adapt to the streaming age.

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