Stem Disintermedia, a music distribution startup, recently announced that they were switching their focus as stated on their website and via public press. As per their statement: We will adjust the Stem fee from 5% to 10% for all new users as of July 1, 2019. Current users will continue to pay 5% on existing content distributed by Stem and a discounted rate of 8% for new releases. This fee update is the result of in-depth research of the marketplace, as well as direct conversations with artists and managers to understand their needs and willingness to pay.
What their website announcement doesn't state is that they are kicking off many artists and record labels because they are not properly setup to handle them, below, a message from a client of STEM who now has to find a home.
First, we understand that every company must evolve and change however, a simple message and statement to force clients, out of nowhere, in our view isn't proper in terms of execution and shows a bit of an elitist point of view that they are only willing to work with clients of a certain revenue size.
Symphonic, also being selective, has a client criteria that we go by with however, we're open minded that we may receive applications from artists and/or labels that aren't yet at a high level and, we'll help develop them.
Symphonic's stance has been that we do not feel 5%, 8%, or 100% of royalties to artists is sustainable. Signing up with a company that is low margin risks your catalogue being lost forever if they are out of business (or, if they cannot sustain, just like this case of Stem).
This announcement has left many artists and/or record labels without a home as Stem has now decided to only focus on a select amount of artists and effectively, shutter its music distribution focus to send artists to Tunecore, a company that is quite different from what Stem and certainly, Symphonic is.
Symphonic feels willing to help Stem and its artists and record labels by giving them a home that is more appropriate to their needs.
We charge a reasonable / fair fee for what we provide. Our fee of 15% gives you a lot and has been proven to help raise the profile of artists. If STEM wishes to work with artist backed teams, then, Symphonic fills that void by being your team for the percentage that we charge. 100% of nothing is nothing but, 15% of something, with a team, is what you deserve.
Apply now to transfer your catalogue from Stem
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