The Facts: The State of the Music Industry
for Songwriters & Producers
Who are we?
The Songwriters and Composers Guild (SCG) is a grassroots organization led by professional songwriters and producers, united by a joint mission—to rally for a union petition and election with the National Labor Relations Board. We fiercely advocate for the rights of music creatives' and fight for a music industry where songwriters and producers can earn a livable wage from both the composition and sound recording in the streaming era and whatever formats emerge in the future.
Here's Our Why
After four years of advocacy for songwriters with the 100 Percenters and over 15 years working in the music industry, we've learned key issues that have inspired us to pursue a union.
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Key Issues:
1
Government Regulation
The government regulates publishing royalty rates for songwriters and producers similarly to how it regulates minimum wage, even though independent contractors have the right to set their own compensation.
2
Streaming Revenue
In the streaming era, songwriters struggle to earn a livable wage, while major music groups and digital service providers take most of the revenue.
3
Delayed Royalties
Songwriters receive publishing royalties only when their songs are released, and payments can take up to two years.
4
Unsettled Deals
Many songs are released before business agreements are finalized, further delaying royalty payments.
5
No Contract for Writers
Major record labels do not formally contract songwriters despite their classification as independent contractors.
6
Sound Recording Compensation
Record labels often deny songwriters compensation for their contributions to sound recordings despite this part of the copyright generating the majority of the revenue.
7
Limited Control
Songwriters and producers have limited control over their work for major record labels and artists.
8
Abuse In Music
The music industry frequently abuses songwriters and producers, leaving them without adequate protection.
Independent Contractor Rights
Contractual Rights: Right to a clear, written contract.
Fair Compensation: Timely payment as agreed.
Work Autonomy: Control over how and when work is done.
Non-Discrimination: Protection from discrimination and harassment.
Intellectual Property: Defined ownership and usage rights.
Health and Safety: Safe working environment.
Privacy: Right to privacy and protection from invasive monitoring.
Termination Rights: Clear terms for contract termination.
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Dispute Resolution: Fair process for resolving disputes.
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Why are we focused on the unionizing with the Major Music Groups?
We contend that major music publishers are not supporting songwriters being compensated for their contributions to the sound recording because the major music groups, which also own the major record labels, benefit from not paying them. It's hard for major music groups to represent the interests of songwriters fairly, as those making the decisions are affected by the outcomes, presenting a conflict of interest.
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According to the Cambridge Dictionary, a conflict of interest is a "situation in which someone cannot make a fair decision because they will be affected by the result."
2023 Recorded Music Revenue Market Share
70.1% went to the major music groups.
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Recorded Music made $17.1 billion
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Streaming brought in 84% of this revenue totaling $14.4 billion
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2023 Publishing Revenue Market Share
69.19% went to the major music groups.
Music Publishing made $6.2 billion
2023- 2027 Streaming
Revenue
Breakdown
Songwriters & Publishers
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15.1% of revenue in 2023
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15.2% in 2024
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15.25% in 2025
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15.3% in 2026
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15.35% in 2027
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Antitrust Laws
The music industry often points to antitrust laws as the barrier preventing music creatives from legally unionizing and collectively bargaining. But what do these laws mean, and why should songwriters and producers pay attention?
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Antitrust laws are enforced by the Federal Trade Commission (FTC) and the U.S. Department of Justice (DOJ) Antitrust Division. They aim to ensure fair competition and prevent practices that harm consumers and workers.
Here are the Antitrust Laws
The Sherman Act prohibits companies from price-fixing, wage collusion, bid-rigging, or monopolizing markets.
The Clayton Act prevents mergers that could stifle competition.
The Federal Trade Commission Act prohibits unfair or deceptive business practices.
The 100 Percenters have filed complaints with the Department of Justice (DOJ) and the U.S. Department of Labor about misclassification and antitrust violations against the major music groups at the end of 2023.
Union Petition
What is a Union Petition?
A union petition is a document signed by workers requesting that a union be recognized as their representative in negotiations with their employer. For us, the employer would be Universal Music Group, Sony Music Entertainment, and Warner Music Group.
Classification
& Union Election
This petition would be filed with the National Labor Relations Board (NLRB) to determine if songwriters should still be classified as independent contractors and to initiate a union election where workers vote on union representation.
What is the
NLRB?
The NLRB is a U.S. federal agency that enforces labor laws related to collective bargaining, oversees union elections, and protects workers' rights to form unions and engage in collective activities.