Submitted by Charles Hugh-Smith of OfTwoMinds blog,
This is the net result of commoditization: there's no premium for commoditized capital, labor, goods, services or content.
As I noted in Our New Robot Overlords & The Third Type of Capital, profits flow to whatever inputs are scarce. Unfortunately for musicians, writers, filmmakers and others producing creative content, creative content is no longer scarce: it's been commoditized and is now available in unlimited quantities for $10/month.
Digital music sales recently fell for the first time ever, with the number of digital songs purchased plummeting 13 percent to 594 million in the first half of 2014, compared with the same period a year ago, according to research firm Nielsen, which has tracked music sales since 1991. Meanwhile, the amount of music streamed online rose 50 percent, the firm said.While streaming sites have helped big online music spenders save money, they have also cut into the money that musical artists make per song.ITunes sells songs for 69 cents to $1.29 each. For a song that costs $1.29, Apple takes 30 percent of the sale and the rest goes to the record label and artist, Stewart said. If the artist is on a record label, they would get a royalty of about 20 cents for that track, she said.That might not seem like a lot, but the money could be even less in streaming music for free with ads. In general, a song must be streamed 75 to 80 times in order for a music label to make the same amount of money as from a single online song purchase, according to MIDiA Research.