Streaming Is Crushing Songwriters’ Livelihood — Artist House Aims to Fix That

Despite the music industry's recovery through digital streaming, a deep financial divide persists, leaving many creators struggling. A recent MIDIA Research survey underscores this crisis: only 10% of more than 300 songwriters earn above $30,000 per year, while over half make less than $1,000. Nearly 70% of those surveyed cited insufficient streaming royalties as their biggest professional hurdle.

In response to this inequity, veteran music executives Gregg Wattenberg and Steve Lerner have established Artist House, a new creative and business hub in New York’s Tribeca neighborhood. Wattenberg, a Grammy-nominated producer known for hits like Train’s “Hey Soul Sister,” and Lerner, former CEO of Wind-Up Records, aim to offer an integrated alternative to traditional label models. The facility, which opens this week, combines a recording studio with a record label, publishing division, sync licensing, artist management, and brand partnerships—all under one roof.

A central innovation is Artist House’s approach to songwriter compensation. Wattenberg notes that streaming payouts are often shockingly low—around $500 for a million streams—and dwindle further when split among collaborators. Rather than lobbying streaming services, the label allocates 10% of master recording royalties (taken equally from the artist and label shares) to songwriters, including external co-writers. This model can increase a writer’s earnings tenfold compared to publishing royalties alone, making it an attractive proposition for established talent.

To ensure sustainability, Artist House diversifies its revenue through management deals—such as with electric violinist Lindsey Stirling—studio rentals, and partnerships with organizations like the Recording Academy. The company also employs a data-informed A&R strategy, blending analytics with creative insight to identify artists with both viral appeal and lasting potential.

Artist development is intensely hands-on. Take the case of Izzy Escobar, a UCLA student whose improvised online freestyles caught the label’s attention. After moving her to New York, Wattenberg challenged her to write a complete song on the spot—the resulting track, “Sunny in London,” garnered 30,000 organic streams within hours. Sync licensing is another priority; though competition is fierce, opportunities in film, TV, and ads continue to grow.

The Tribeca studio itself is designed to foster collaboration, with amenities like free meals and drinks helping to create a productive atmosphere. Its prime location was secured thanks to post-pandemic commercial real estate shifts, which made landlords more open to creative tenants. As Wattenberg observes, “New York’s music infrastructure took a hit over the years—we want to help rebuild it.” By offering both creative resources and fairer financial terms, Artist House aims to nurture a new generation of talent while supporting the city’s broader artistic community.