The difference is that when people bought albums, everyone got paid only once for the sale. In streaming, everyone gets paid every time a song gets played. So the potential exists to get paid more for streaming if users stream a song billions of times.
Using this model, record labels are seeing revenues rising almost to the point of where they were with sales, plus they don't have all the costs associated with physical product. For artists, they could continue to get paid long after they stop performing.
Understood on your first point, but there is quite a difference between $15 and 9 cents (the nine cents I mentioned is a high average -- if it were one of the bigger streaming players, like the most popular ones, an album would be more like
4-5 cents).
And how many people stream an entire album? Of course, you could say the thing about CDs / Cassettes / etc., but I can guarantee that in the CD / LP era there were plenty of those units that were purchased, and maybe played once or twice and then left on the shelf. But -- played or not -- the artists/producers/companies still got that $15.
In the modern content era the ones who make the big money off of streaming are, naturally, the big names. The middle range artists do not achieve the same results. And although record co's still make some money, their revenues are still -- according to the RIAA -- 37% less than they were in 1999.
The fact is, although there still is money coming in, a lot of artists aren't seeing the results expected. They aren't screaming for higher royalties because they're making tons of money.
There is also the option for artists to bypass record co's altogether, as many artists are doing. This just adds to the amount of musical content out there, increasing competition for playtime on the streaming sites. We are just entering the era of streaming being
the music consumption model, and the era where music is merely another form of content. The massive amount of internet content, and massive competition that goes with it, has a tendency to drive prices down, and it doesn't bode well for higher subscription rates being the norm.
Although I could be wrong. In a few years, we'll see how it goes.
Totally agree on what you say about radio. And, being that it was the industry I was employed in for almost 20 years, I feel good that radio will still be around, because of what it still has to offer.