US Representatives Rashida Tlaib and Jamaal Bowman have introduced the Living Wage For Musicians Act to congress, aimed at establishing a minimum streaming payment for musicians higher than the current standard. Collaborating with the United Musicians and Allied Workers and other artists, the bill proposes a minimum payout of 1 cent per stream, contrasting with Spotify's current rate of $0.003-$0.005 USD per stream. The act also suggests capping tracks once they reach one million streams, ensuring that artists receive a fair wage.

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The proposed royalty would be supported through platform subscription fees and a 10% levy on non-subscription revenue. This model is structured to guarantee that artists receive a minimum of one penny per stream, which is calculated to provide a living wage for working-class artists from streaming revenue. The royalties would be distributed proportionally from a centralized fund, with limitations on how much an individual track can earn, promoting a more equitable distribution of payments.

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Representative Tlaib emphasized the importance of ensuring that musicians are adequately compensated for their work, especially as streaming has reshaped the music industry. The bill arrives shortly after Spotify's announcement that it will no longer remunerate artists for songs with fewer than 1,000 streams, a meager compensation of about 3 cents per month for creators. Spotify claims that this policy aims to prevent artificial streaming, enhance fair payouts to smaller artists, and prevent abuse of the system.

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The introduction of the Living Wage For Musicians Act underscores the ongoing debate surrounding artist compensation in the digital streaming era, with efforts focused on providing a more sustainable and equitable framework for musicians to thrive in the industry.