It’s another episode of exposure over actual earnings.
Indie musicians are about to get a taste of the big leagues on Roblox. But here’s a catch: they won’t see a cent in royalties when their songs are used.
Roblox, on the other hand, is set to profit from more user engagement through its music discovery tools.
Indie Artists’ Roblox Problem
The gaming platform Roblox announced a partnership with DistroKid during its Developer Conference on September 6, 2024. This partnership opens the door for indie tracks to blast across a virtual world with 80 million daily active users.
However, while artists’ tracks will be featured in games across the platform, they won’t be compensated when their songs are played.
Amanda Ferri, DistroKid’s VP of Marketing, said the company is focused on helping artists get discovered through this partnership. Meaning, it’s more for exposure than earning money – which is a sensitive topic in the industry.
“DistroKid is always looking for new ways artists can be discovered and make their music available,” she said.
“Working with Roblox aligns perfectly with that mission. We’re stoked about our collaboration with Roblox and can’t wait to reveal more soon.”
Yet again, artists participating in the program must opt in, but it comes with some conditions.
First, the program is invite-only (at least for now), so many independent musicians won’t even get to try it.
Second, they must own 100% of their publishing rights and can’t be part of performing rights organizations (PROs) like ASCAP or BMI.
And even if you tick all the boxes, there’s no guarantee your track will make the cut. The platform retains full discretion over which tracks are chosen.
How Roblox Benefits From Unpaid Music
While artists are left high and dry, Roblox is riding the wave to new heights.
The platform is rolling out new features like “What’s Playing” and Music Charts launching in 2025, which will track user engagement with songs on the platform.
The “What’s Playing” feature will allow users to see what track is currently playing and give them the option to like it, feeding into the platform’s music charts. These charts will rank songs based on how much love they’re getting from players, giving tracks a chance to climb the virtual billboards.
And, while independent artists remain unpaid for their contributions, Roblox continues to grow financially.
We’re talking about a projected $3.5 billion in revenue for 2024, with over 16 million users dropping real cash on Robux each month.
But, the platform’s not stingy with everyone. They paid out a $740.8 million to game developers in 2023, making it clear that developers benefit financially from Roblox, while musicians do not.
Industry Pushback
As expected, the music industry isn’t taking this lying down.
Sure, there are some that see Roblox as a potential launchpad for fresh talent. But, many are calling it out as exploitation.
Major record labels, which have already established various in-game experiences and partnerships with Roblox, are particularly wary of the idea of giving away music for free.
For example, UMG CEO Lucian Grainge has been vocal on the issue of unpaid music.
He compared the rise of platforms like YouTube and MTV, which also initially failed to pay artists, to the current state of affairs with Roblox.
“Technology platforms were built on the backs of the artists’ hard work,” Grainge remarked.
This isn’t Roblox’s first issue with the music industry, either. Roblox has also faced legal challenges on this front.
In 2021, the National Music Publishers’ Association (NMPA) sued Roblox for $200 million over widespread copyright infringement.
The suit was settled later that year. But, the issue of fair compensation for artists remains unresolved.
Despite this, Roblox Chief Product Officer Manuel Bronstein suggested that artists could still make bank outside the platform. That is, for example, by driving fans to stream their music elsewhere or selling virtual merchandise.
For instance, some prominent artists, like Charli XCX, have achieved significant success through Roblox collaborations.
But for smaller indie acts, standing out in a sea of millions of games remains a challenge.
“There are so many games on the platform,” says Mat Ombler, a music and gaming consultant.
“There is absolutely no guarantee that launching an activation will get artists in front of those 80 million players.”
Yet, there are also some artists who see the benefit of this.
For artists like Kody Valentine of The Holy Knives, the opportunity to reach a massive audience is enticing.
“Majors probably don’t need more exposure,” Valentine noted.
“(But) As independent artists, that’s the number one thing we need. If that can come through Roblox, that is amazing.”