More music is being created right now than at any other time in history, and most of it is coming from independent music makers. According to the most recent data from Luminate, about 99,000 tracks a day were delivered to the digital streaming platforms (DSPs) in 2024, with 91.8% of those tracks coming outside of the major labels or distribution systems. 

Yet, even as uploading music to streaming platforms has reduced old barriers to entry, many obstacles still exist for someone trying to earn a living as a full-time music creator. The production cost of a full album averages almost $33,000, according to a July 2025 survey of A2IM label members. And with an industry that’s experienced immense changes in recent years – from the COVID-19 pandemic shutting down studios and live venues to diminished streaming revenues for artists – it’s harder than ever for independent music people to take on the financial burden of their creativity. 

We saw an important shift in this paradigm this past July, when the HITS (Help Independent Tracks Succeed) Act was finally passed into law. It took five long years of advocacy by the Recording Academy, the American Association of Independent Music (A2IM), and organizations and creators across the industry. 

At its core, the HITS Act is about fairness, as it ensures music production expenses are given equal treatment in the federal tax code as those in film and TV. In practice, the HITS Act allows individual recording artists, songwriters and record producers to deduct the full cost of sound recording and production expenses, up to $150,000, in the year they are incurred. For independent musicians, who generate an average of 65 tracks a year – with a single track averaging almost $3,100 in production costs, according to the July A2IM survey – the HITS Act is a much-needed safety net that will help them further their artistry without compromising their financial well-being. 

A Partnership of Advocacy 

Like many of the songs and albums we love, the passage of the HITS Act represents a successful collaboration – in this case, one between two music associations dedicated to finding solutions that will bolster independent artists and record producers. 

In 2020, the Academy worked directly with Representatives Linda Sánchez (D-CA) and Ron Estes (R-KS) to develop a bill that would address the economic impacts of the COVID-19 pandemic on the music community and incentivize artists to get back in the studio to create new music. The shuttering of live music venues led to significant loss of income for independent creators, and small labels were threatened by the high upfront production costs. The HITS Act was created to minimize those risks and ensure artists could continue developing their careers in the midst of a global shutdown. 

Our success was in great part due to the diligence and strength of the people the Recording Academy and A2IM represent, who immediately got to work engaging with elected officials across the country. More than 600 independent labels nationwide in A2IM’s network, along with thousands of Recording Academy members, spoke with lawmakers on the importance of the HITS Act and encouraged them to move the bill forward. 

The road from bill to law wasn’t easy. It took over five years for the HITS Act to finally pass. But in that time, the importance of this legislation became even more apparent, especially in our changing music industry. While it began as a COVID recovery bill, the HITS Act represents a broader legislative lifeline that will help ensure independent creativity can survive and thrive. 

The Future Looks Brighter 

As we celebrate the passage of the HITS Act, our eyes look ahead to what’s next: the impacts that this new law will have on independent music creators. It may help a singer-songwriter who has filled dozens of notebooks with their songs to finally develop the album they’ve dreamed of making, or support an independent record producer as they explore new genres and sounds. 

Of course, all of this comes with a question: “How does it work?” 

If an independent creator is interested in utilizing the HITS Act tax deduction, they should make sure to keep track of their production expenses. Having documentation such as receipts, invoices and contracts helps support claims when filing, and consulting with a tax professional ensures expenses are accurately reported and deductions are fully optimized. It’s an exciting time for our community, and we’re excited to see how the enhanced financial flexibility the HITS Act offers will bolster artists’ creativity in the coming years. 

The HITS Act’s journey to law, and the collaboration of A2IM and the Recording Academy throughout the past five years to make it possible, represents the heart of our collective mission to support the longevity of our industry and the well-being of music people. It’s also a valuable reminder that when we work together, we can generate meaningful change that moves our communities forward. 
  
As CEO of the Recording Academy and MusiCares since 2021, Harvey Mason jr. is redefining what it means to champion music creators, ensuring their voices are heard, their rights protected, and their artistry celebrated. During his tenure, Mason has spearheaded transformative initiatives including the Songwriters & Composers Wing and the DREAM Initiative, strengthened advocacy efforts in Washington, D.C., and played a pivotal role in raising and distributing over $40 million in COVID-19 relief and $25 million for fire relief efforts. A multi-GRAMMY and Emmy nominated songwriter and producer, Mason has crafted iconic hits for both legends and today’s biggest stars, from Whitney Houston and Elton John to Beyoncé and Justin Bieber.  
  
President and CEO for the American Association of Independent Music (A2IM) for the past 10 years, Dr. Richard James Burgess MBE has produced, recorded, and performed on many gold, platinum, and multi-platinum albums. Burgess has been listed multiple times as a Power Player and an Independent Power Player by Billboard and has received awards from Music Week, the British Arts Council, the Greater London Arts Association, the Park Lane Group, and the British Council for Education. He was awarded an MBE (Member of the Order of the British Empire) in the Queen’s New Year’s Honors list 2022. 

Aubrey O’Day has been through the ringer these past two weeks, with her emotional testimony in Netflix’s Sean Combs: The Reckoning documentary dropping for all the world to see in early December.

And in a Thursday (Dec. 11) post on her Instagram Story — shortly after she missed a Danity Kane reunion show due to illness — the singer reflected on what a challenging time it’s been for her. “What an intense, overwhelming two weeks this has been for me — with the Netflix drop, the world now knowing things that were hard for me to say,” she began.

“Plus all the things happening behind the scenes in every area of business rn,” she continued. “It’s been a very heavy time.”

O’Day also shared a photo of herself being carried by two dancers on stage at a recent performance with her girl group, which she says was the first time she’s “fully released” amid all the craziness.

Detailing the many allegations of sexual misconduct against Sean “Diddy” Combs, Netflix’s 50 Cent-produced docuseries premiered Dec. 2. At one point, O’Day discusses her claims that the disgraced Bad Boy Records mogul — who was sentenced to four years in prison in October for violating federal prostitution laws — fired her from Danity Kane, a group he helped assemble on Making the Band 3, because she refused to have sex with him.

The performer’s update comes just a day after she skipped her ensemble’s concert in Los Angeles after going to the ER for an undisclosed illness. “I’ve become extremely sick and physically can’t make tonight’s show,” she wrote on her Story at the time, according to TMZ. “I’ve been fighting it all day, spinning around in my head trying to find any way to make this work, but being sick is being sick — it’s completely out of my control.”

Bandmates Aundrea Fimbres and D. Woods ended up holding it down without O’Day on Wednesday (Dec. 10). The trio is currently on its Untold Chapter Tour, with shows scheduled in Connecticut, Michigan, Pennsylvania, New York and more American cities through late December.

The year started with a swirl of head-spinning national events.

In January, Donald Trump was again sworn in as president, a moment that, among many other sweeping changes, ramped up legislative attacks on transgender rights; diversity, equity and inclusion; immigration; and the environment across the country. The inauguration occurred as areas of Los Angeles still smoldered from wildfires that had decimated entire neighborhoods in the first few days of 2025.

On Feb. 1, the Grammy Awards opened with a tribute to L.A. during which a supergroup including John Legend, Sheryl Crowe, St. Vincent and Dawes (the rock band’s Taylor and Griffin Goldsmith had just lost their homes in the fires) performed “I Love L.A.” During the broadcast, Alicia Keys addressed the attacks on DEI by telling the world that it is “not a threat. It’s a gift.” Shakira noted the current immigration policy while accepting her award for best Latin pop album, saying, “Latinos, we are an unstoppable force. I will not tire of fighting with them and for them.”

Lady Gaga and Charli xcx both advocated for trans rights, as did Chappell Roan, who during a red carpet interview with GLAAD said, “It’s brutal right now, but trans people have always existed and they will forever exist. They will never, no matter what happens, take trans joy away. That has to be protected more than anything.”

This proclamation wasn’t just lip service. As the issues presented at the start of the year became more urgent throughout 2025, Roan was among many members of the music community putting time and money behind philanthropic causes.

In October, Roan announced the launch of the Midwest Princess Project, which she described as “an organization we’ve launched to provide support and needed resources for trans youth and LGBTQ+ communities.” The foundation invited local trans rights organizations to Roan’s Visions of Damsels & Other Dangerous Things pop-up shows, with each one splitting the money raised per event. (The eight-date tour played three cities.) At the end of the run, Roan announced the foundation had raised $400,000 to support trans youth.

As for the L.A. wildfires, thousands of industry members stepped up to help those affected, with one initiative started by a veteran music publicist who shared a spreadsheet with GoFundMe links that ultimately raised more than $13 million for members of the community who’d lost their homes. “It’s so hard to leave thousands of people off this [music business] list,” the publicist, who preferred to remain anonymous, told Billboard in January. “But it lets everyone start with their community.”

The Grammys’ philanthropic division, MusiCares, also pledged $1 million in fire relief aid, with the star-studded FireAid benefit concert in January — which featured artists including Gaga, Sting, Peso Pluma and No Doubt performing at a pair of L.A. venues — raising over $100 million. (While FireAid organizers were accused of misallocating funds, an investigation ultimately found no evidence of misuse.)

Among the many donations by artists and organizations, The Weeknd gave $1 million toward fire relief. Then, in October, he donated another $350,000 from his XO Humanitarian Fund to relief efforts in Jamaica in the wake of Hurricane Melissa. And over the summer, a host of artists contributed to assistance efforts after severe flooding in Texas in July, with George Strait, Miranda Lambert, Parker McCollum, Robert Earl Keen and other country acts performing benefit shows following the tragedy that killed more than 130 people.

In a year that’s often been mentally challenging on collective and personal levels, Noah Kahan’s The Busyhead Project expanded its work in granting wider access to mental health care. The initiative operates by donating money to local nonprofits — which have included L.A. mental health services provider Didi Hirsch, Nashville’s youth-oriented Oasis Center and Spectrum Youth & Family Services in Burlington, Vt. — that provide shelter, food and counseling to young people.

In September, Kahan and his team debuted Fairs & Folkways, a two-day golf tournament and benefit concert. Then, in November, he performed another benefit show in Boston that raised $1.5 million for The Busyhead Project and the Red Sox Foundation. (This money comes on top of the $4.5 million raised by The Busyhead Project since its 2023 launch.)

Meanwhile, the industry put substantial effort into environmental protection. In April, the second Music Sustainability Summit in L.A. brought together hundreds of professionals for discussions about environmentally progressive approaches to concert waste management, transportation, merchandise and other key industry areas. “Let’s be honest: This work is only getting more important as some political forces pull back from climate commitments and even try to undermine environmental progress,” Music Sustainability Alliance co-founder and CEO Amy Morrison said at the conference. “It’s falling on industries like ours to step up and lead.”

Among those who did just that was Billie Eilish, who remained an environmental champion this year. In October, it was announced that the pop star raised $11.5 million for organizations addressing food insecurity and climate change during her Hit Me Hard and Soft world tour. The announcement was made at the same event where Eilish memorably called on billionaires “to give your money away, shorties,” a statement that generated global support. The tour also delivered initiatives like upcycled merch and plant-based menus to crowds in 18 countries.

Eilish also helped sponsor members from Support + Feed — an organization created by environmental activist Maggie Baird, Eilish’s mother, that provides plant-based meals to people in need — to provide educational resources at shows by artists who don’t yet have the revenue to host such groups themselves.

“I think it’s important that we reach down,” Baird told Billboard in November. To this end, Baird also worked with Universal Music Group’s merch and branding division, Bravado, to make Eilish’s offerings more environmentally friendly and consulted on a project that sent 400,000 unused items from Nashville to Morocco, where the deadstock was transformed into yarn for new merch pieces.

The general consensus among those taking action this year was that not helping was not an option. “It’s a very intense time,” Baird told Billboard, speaking to the often fraught state of the world in 2025, “but there are so many people doing great things.”

This story appears in the Dec. 13, 2025, issue of Billboard.