NYC Council Passes Resolution Supporting Higher Pay for Artists on Streaming Services

The New York City Council on Tuesday passed a resolution endorsing federal legislation that would create new royalty payments for musicians whose work generates billions in revenue but leaves many earning below minimum wage.

Resolution 368, introduced by Council Member Shahana Hanif, supports the Living Wage for Musicians Act, which would establish additional streaming royalties paid directly to artists on top of their existing compensation. The federal bill was originally introduced by Representative Rashida Tlaib and former Representative Jamaal Bowman in collaboration with United Musicians and Allied Workers (UMAW).

With a coalition of independent music producers, songwriters and other industry workers, UMAW has taken direct aim at major streaming platforms, organizing high-profile lobbying efforts since its 2020 inception to demand fairer compensation models from companies like Spotify and Apple Music. Through sustained public pressure and grassroots mobilization, the advocacy group has catalyzed a broader reckoning over the value of music labor in the digital age.

"In the music capital of the world, artists deserve fair pay and dignity," Hanif said in a press release. "As streaming platforms pay artists less than a third of a penny per play, this is a critical step toward making our city more affordable for working musicians to continue living and creating music here."

Joey La Neve DeFrancesco, a musician and UMAW organizer, called the resolution "a huge win for NYC musicians" that demonstrates how collective action can drive change in the industry.

"From here, we will aim to have similar resolutions passed in other cities, and use this momentum to gain co-sponsors and reintroduce the bill in Congress, and to pass it," DeFrancesco said in an emailed statement provided to EDM.com. "We still have a lot of work to do, but passing this Resolution in the biggest city in the US is a huge step."

The coalition's goal, DeFrancesco tells us, is "for the new royalty to equal at least a penny per stream, in addition to existing royalties."

UMAW in 2020 unsuccessfully launched a vigorous campaign, "Justice at Spotify," calling for the company to remit penny-per-stream payouts to artists. The group at the time organized a series of worldwide protests hosted outside Spotify offices in 15 cities before the streaming giant refused their demands.

Spotify in late-April reported that its premium subscriber base grew by five million in Q1. The company's earnings report also revealed a record-high quarterly operating income of €509 million as its total revenue ballooned 15% year-over-year to €4.2 billion. The company's stock is up a staggering 670% since late-2022, according to The Motley Fool.

Council Member Carmen De La Rosa, who chairs the Committee on Civil Service and Labor, further highlighted the economic disparity facing New York City's estimated 14,000 musicians.

"The Living Wage for Musicians Act is a lifeline for musicians who must rely on an exploitative royalty structure to make ends meet," she said, "and uplifts a vibrant workforce that deserves to be paid fairly for their art and talent."