by Phase

Why Music Artists Can’t Make a Living Anymore: A Deep Dive into the Modern Industry Crisis

The image of the struggling artist is nothing new, but in today’s digital era, even talented and well-followed musicians are finding it harder than ever to turn their passion into a sustainable income. While music is more accessible than ever for listeners, the business behind it has drastically changed—and not necessarily in favor of those creating the art. Here’s a breakdown of the key reasons why many music artists simply can’t make a living anymore.

1. Streaming Dominates—but Pays Pennies

Streaming platforms like Spotify, Apple Music, YouTube Music, and Amazon Music have become the dominant way people consume music. For listeners, this is incredibly convenient: millions of songs, on demand, often for free or through a low monthly fee. For artists, it’s a financial nightmare.

  • Payouts per stream are minuscule. Spotify, one of the most popular platforms, pays roughly $0.003 to $0.005 per stream. That means an artist would need over 250,000 streams just to earn $1,000—before expenses or splits with labels.
  • Labels and distributors take their cut. Independent artists may earn a bit more per stream, but most signed artists see their revenue slashed even further after their label takes a hefty share.

In short, streaming has created a model where millions of plays generate very little revenue.

2. Decline of Album and Song Sales

In the pre-streaming era, music sales were a major source of income. CDs, vinyl, and digital downloads like those on iTunes made it easy for fans to directly support artists.

  • Physical sales have plummeted. CD sales are nearly extinct, and vinyl—while resurging in niche markets—is far from making up the difference.
  • Digital downloads are no longer a thing. With streaming offering access to all music for a small fee, few consumers are willing to pay $1.29 per track anymore.

The result? Artists can no longer rely on selling music as a primary income source.

3. Touring Is Expensive and Risky

Live performances used to be a reliable moneymaker—often the biggest slice of an artist’s income. But that landscape has shifted.

  • Rising costs: Touring involves venue fees, equipment, travel, accommodations, crew wages, and marketing. All of these have increased substantially.
  • Post-pandemic challenges: COVID-19 disrupted touring globally. Many artists are still struggling to reestablish consistent tours, especially with unpredictable cancellations and low ticket sales.
  • Not everyone profits: Unless an artist has a strong draw, they may end up breaking even—or worse, losing money—on the road.

Touring is no longer the financial safety net it once was; see a relevant statement by Kate Nash discussing how she ends up with debt following sold out tours.

4. Oversaturation of the Market

Technology has made it easier than ever to produce and release music. This democratization is great creatively, but it has also flooded the market.

  • Anyone can be an artist now. With platforms like DistroKid, TuneCore, and Bandcamp, you don’t need a label to release music.
  • Discovery is difficult. The sheer volume of new releases makes it hard for any one artist to break through and build a loyal fanbase.
  • Algorithms often favor virality, not artistry. Success today often depends more on marketing savvy and luck than on raw talent.

It’s harder than ever to get noticed—let alone build a sustainable following.

5. Labels Still Take Huge Cuts

Despite the rise of independent distribution, many artists still sign with record labels—often because labels have the marketing power and industry connections to boost a career.

  • But deals are rarely artist-friendly. Standard label contracts often take 70-85% of streaming royalties, sometimes even more.
  • Advance money isn’t “free.” Any upfront payments are recoupable, meaning the artist has to pay them back through future earnings before seeing profits.

Unless you’re a top-tier act, labels often benefit more than the artists they sign.

6. Social Media Pressure and Burnout

Today’s artists aren’t just musicians—they’re expected to be full-time content creators.

  • Platforms like TikTok, Instagram, and YouTube are essential for visibility.
  • Algorithms reward constant engagement. Artists are expected to post regularly, go viral, interact with fans, and promote themselves daily.
  • It’s exhausting. This constant demand drains time and creativity from music-making, leading to burnout and disillusionment.

For many, the pressure to “be their own brand” overshadows the art itself.

7. Merchandise Isn’t a Guaranteed Lifeline

Many artists try to supplement their income through merch: T-shirts, vinyl, posters, or other branded goods.

  • Only a fraction of fans actually buy merch.
  • Manufacturing, shipping, and marketing eat into profits.
  • It takes scale. For merch to become a serious revenue stream, artists need a large, engaged fanbase—and even then, it’s inconsistent.

Merch works well for established or niche acts, but it’s no salvation for the majority.

The Bottom Line

The modern music industry is built around platforms that serve listeners incredibly well—but often fail the very creators fueling them. While it’s easier than ever to release music, it’s also harder than ever to make a living doing it. Between low streaming payouts, vanishing sales, expensive touring, and the demands of constant self-promotion, today’s artists face an uphill battle.

Some are adapting by building communities on platforms like Patreon, Twitch, or Substack, while others look to sync licensing, brand partnerships, or teaching. But for the average musician, the dream of making a living from music alone is becoming less and less viable.

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