Artist Revenue Streams Research Project

 

My friends at the Future of Music Coalition are conducting an online survey from Sept 6 – Oct 28th to determine the variety, depth and complexity of the ways that musicians are making money these days.  Not theoretically, but actually.  We are looking for performers, songwriters, composers, band members, session players, producers, MCs and anyone else making music to join in and take the survey.

A while ago, I posted this from my friend and Berkleemusic student David Sherbow showing a pretty comprehensive list of the different ways that musicians can make money.  This might give you food for thought on taking the survey and planning your career…

The artist music business model has been in flux for years. The record deal dream that most artists sought is no longer the viable alternative that it once was.  The leveling of the music distribution playing field by the Internet is virtually complete.  Terrestrial radio is on a path towards destruction that even the major labels can’t compete with.  People now access and download music from multiple sources, usually for free.  D.I. Y solutions are everywhere, but for many artists hard to integrate into their daily lives.

Where does this leave the average independent artist? At the beginning. Every artist wants to know how they can make music, make money and survive to write and play another day. Here, in no particular order, is a list of possible income streams.

• Publishing
• Mechanical royalties
• Performance Royalties from ASCAP and BMI
• Digital Performance Royalties from Sound Exchange
• Synch rights TV, Commercials, Movies, Video Games
• Digital sales – Individual or by combination
• Music (studio & live) Album – Physical & Digital, Single – Digital, • Ringtone, Ringback, Podcasts
• Instant Post Gig Live Recording via download, mobile streaming or flash drives
• Video – Live, concept, personal,  – Physical & Digital
• Video and Internet Games featuring or about the artist
• Photographs
• Graphics and art work, screen savers, wall paper
• Lyrics
• Sheet music
• Compilations
• Merchandise – Clothes, USB packs, Posters, other things
• Live Performances
• Live Show – Gig
• Live Show – After Party
• Meet and Greet
• Personal Appearance
• Studio Session Work
• Sponsorships, and endorsements
• Advertising
• Artist newsletter emails
• Artist marketing and promotion materials
• Blog/Website
• Videos
• Music Player
• Fan Clubs
• YouTube Subscription channel for more popular artists
• Artist programmed internet radio station or specialty playlist.
• Financial Contributions of Support – Tip Jar or direct donations, Sellaband or Kickstarter
• Patronage Model – Artist Fan Exclusives – e.g. paying to sing on a song in studio or have artist write a song for you
• Mobile Apps
• Artist Specific Revenue Stream -  unique streams customized to the specific artist, e.g Amanda Palmer
• Music Teaching – Lessons and Workshops
• Music Employment – orchestras, etc, choir directors, ministers of music, etc.
• Music Production – Studio and Live
• Any job available to survive and keep making music
• Getting Help From Other Artists and Helping Them -  Whatever goes around come around. – e.g. gig swapping, songwriting, marketing and promotion

Posted September 16 @ http://www.futureofmusicbook.com/2011/09/16/artist-revenue-streams-research-project/

10 Truths About the Modern Music Business

by Jason Feinberg, October 14, 2010

1. The "DIY Revolution" has Been Relatively Ineffective

Although going it on your own was all the rage in 2009, reality has shown that the majority of artists still need a team around them to reach any substantial level of awareness, sales, and revenue. However, this team doesn't necessarily need to resemble the traditional record label department structure. For many artists, surrounding themselves with a few tech-savvy friends and some seed money can generate the momentum necessary to fuel a moderate indie career. To reach far and wide enough to live off of one's art, the task list is simply too long to tackle alone. In reality, DIY can work just fine if you modernize the traditional definition of the term.

 

2. Tech Can Replace/Enhance Some Functions

Technology has removed many barriers and allowed almost anyone to play the game. It has also removed the need for some of the team members that have always been needed. Recording, mixing and mastering music can be done faster and cheaper than ever before. Distributing the output digitally is near instant and inexpensive. Anyone can create digital tools that collect email addresses, stream music, sell tickets, and engage with fans. Just remember that with technology, "build it and they will come" is pure fantasy.

 

3. Direct-to-Fan is Valuable When Executed Properly

Even with all the hype, direct-to-fan (D2F) has proven itself as a valuable strategy when implemented correctly. D2F, when viewed as a set of best practices, can supplement list growth, sell high-margin offerings, and give artists a chance to engage their biggest supporters in innovative ways. However, the idea that D2F is simply creating a Topspin account and building a splash page is a myth -- proper D2F involves content and offer curation, a well-planned timeline, some existing reach, and savvy marketing both online and off.

 

4. The Aggregator Market Has Solidified

Very little has changed in this area over the past couple years. With a few clear leaders emerging, artists have no problem getting their content to the marketplace. Other than some simple distinguishing features, most digital aggregators provide an identical core service: Get your music on iTunes, Amazon, and many other digital storefronts. Tunecore, CDBaby, IODA, Reverbnation, and a few others have effectively cornered the market.

 

5. Marketing Tools Have Diversified

The emergence of multiple tiers of artists has also allowed products to follow suit. Companies that offer similar products are finding their own market niches by catering to specific classes of artists (hobbyist, middle-class, established, legacy, etc.). The distinction between services is often based on feature sets, and that typically correlates to price. We'll see this trend continue as the tiers further solidify and the realities of what different artists can spend (and need) come to light.

 

6. Facebook Gaining on Email

Traditionally, email has been the Holy Grail of communicating with fans, but as social media and SMS adoption grows, Facebook and text messages are giving email serious competition. Many bands are turning to Facebook as their core communication channel; for many types of audiences this makes perfect sense -- Facebook allows for standard communication but also offers sales, research, and data collection opportunities in one location. By owning the entire ecosystem, Facebook makes the call-to-action process much simpler.

 

7. The Official Site is Critical (Again)

I'd argue this has always held true, but most artists in most genres have begun to truly grasp the importance of an official site. Official sites allow levels of control that are unrivaled by any other platform. Artists can have full control over sales, data capture, and fan engagement on their own site, whereas other platforms such as MySpace and Facebook have limitations in these areas. However, some artists are keeping it simple and can implement those core functions on even the most simple of platforms; the benefit here is little to no cost and minimal administration and maintenance. The right strategy is to understand the value of different platforms, and find the right mix based on audience and needs.

 

8. Physical Fulfillment is Still a Logistical Puzzle

The hardest logistical part of running an artist's business is physical fulfillment. This is an area that has always been tough and it's only become marginally easier through new services and technology. There are a number of ways to fulfill physical goods -- do it yourself, find willing partners, use an established fulfillment house, or sign a formal distribution deal. These each have their pros and cons, but ultimately it comes down to the complexity of the offerings and the quantity of business a band is doing. No matter what method, someone must be managing the process at all times; with so many moving parts (manufacturing, delivery, shipping, stock levels, customer service, etc.) fulfillment management can be a full-time job.

 

9. The Value of Mobile and Apps is Still Cloudy

The music space in mobile is still somewhat like the Wild West. Their are certain sectors that are entering adulthood -- SMS marketing for example, where Mozes has become the clear leader. However, other areas are far from fully formed. Music apps for mobile phones are plentiful, but they rarely generate acceptable levels of revenue. One thing has become clear -- for almost all artists, charging for a music app is the wrong business model; give it away for free and utilize in-app purchases.

10. Monitoring Tools: A Race to The Top

There is no excuse to not know what events and metrics surround an artist or release. There are so many analytics platforms that the challenge is figuring out exactly which data is important to the current state of a project, and then finding the easiest way to aggregate the information. Check out RockDex, Next Big Sound, BandMetrics, Radian6, and BuzzDeck to see the range of platforms and services. Although they cater to different audiences, they are all racing to determine the ultimate set of useful data and develop the most effective ways of interpreting and displaying it. The real challenge is then telling the user what to do next.

This article was originally posted at: http://www.pbs.org/mediashift/2010/10/10-truths-about-the-modern-music-business287.html

RECORD PRODUCER

Sahpreem King Mixing at Studio Center, Miami, Florida, Circa 2006

Within the realm of pop music, record producers have become just as illustrious as the musicians they work with. Producing a hit record can not only launch an artist from obscurity to legendary status, but catapult a producer’s career as well. Artists rely on producers’ creative expertise to craft the signature sound of an album or single; labels rely on their business savvy to ensure the record is completed on time, on budget, and with all samples cleared.

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Duties

The first task of a record producer is to collaborate with the band to select songs for the album, whether written by the band or by another songwriter. The producer may participate in the rehearsal process and may hire an arranger to add parts to some songs, or begin amassing beats and picking possible samples. He or she selects a studio, negotiates recording time, chooses an engineer, and enlists the services of session musicians and background vocalists where needed. During the recording session, the record producer works closely with the recording engineer to perfect each track, decides when to do retakes, and adds his or her own trademark to the song. The final mix of the album is under the supervision of the producer, and he or she makes decisions (in collaboration with the band and label) on the order of songs on the album and selection of singles.

The job’s not over once the record is complete; the producer is still responsible for business matters like paying the studio and contract talent, providing receipts and expense reports to the label, securing release forms, and clearing samples. Record producers may work as independent freelancers or on staff at a record label, under the supervision of the A&R director.

Skills & Education

There is no specific college requirement to work as a record producer, but most have extensive training in music theory, musicianship, and audio production. A degree in recording arts is useful in gaining hands-on experience with mixing consoles, digital mastering, and outboard hardware. Courses in music business are useful in understanding the processes of copyright, music publishing, and entertainment law. Most producers have had experience as a recording engineer and/or musician. A trained ear for music is crucial, as is the ability to aptly communicate your vision to your creative partners.

What to Expect

A record producer must be creative, tech-savvy, and have a knack for business—a jack-of-all-trades. Your career is based propelled or stunted by your last successful track and your reputation among musicians: Are you the kind of person who can engender a creative atmosphere in the studio; can you pull the best out of the artists and make them believe it was in them all along? It goes without saying that you should expect long hours and mounting stress as deadlines loom and the band can’t seem to hit the mark. By turns the producer must be best friend, teacher, and whip-cracker. Be prepared to fight battles with the label, and know when to compromise. The end result of the sessions will be on your shoulders, but no one wants to hire a producer who is difficult to work with. When you make the jump to working as a producer your first gigs may be with unknown bands or small labels, but it only takes one hit to move up to the big leagues.

Originally posted at: http://getinmedia.com/careers/record-producer

Beat Producer

There is no shortage of hopefuls who aspire to become successful beat producers, but far fewer actually understand the work of this individual in today’s popular music industry. The beat producer performs a greater function than pulling together synthesized drum hits, he or she is a composer who crafts the original music, an alchemist that mixes sampled material with original content, over which rap and hip-hop artists lay their lyrics.

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Duties

A recording artist or other producer can contract the services of a beat producer to compose music, or the beat producer may offer original material to an artist as work-for-hire. Under the former arrangement, the beat producer reaches an agreement concerning copyright and licenses that may give the producer partial or full ownership of the composition. Under those circumstances, the producer retains rights concerning compensation for sales of the track on an album, and future use of the track when licensed for separate purposes, such as radio play, use in a film or television show, or performance. As work-for-hire, the beat producer generally solicits an artist to use the track and receives a one-time fee for the full ownership of the composition. That means that the producer is not entitled to any further compensation for the use of the material, unless contractually stipulated.

The process of composing musical tracks varies for each beat producer but entails the recording of live instruments or synthesized sounds. There are a number of software applications commercially available that allow a producer to compose such tracks on a personal computer. This requires the addition of a compatible synthesizer, keyboard, and one or more pieces of outboard gear. If the beat producer creates original music for an artist under contract, he or she may work closely with that musician and producer to compose a tune that is distinct to that artist’s style. He or she will work cooperatively in a recording studio to compose the track, refine the song, and finally record the single or multiple tunes. As work-for-hire, the producer may choose to work independently to compose one or more beat tracks that he or she shops around to entice a buyer. Another process of the beat producer is to create by digging through previously recorded tracks to sample beats and melodies from a wide variety of musical genres. In such cases, the beat producer creates an original track through the modification and manipulation of an existing tune. There are also digital libraries that are commercially available and widely used by professionals. The license typically requires only a one-time fee, like purchasing a computer program.

 

Skills & Education

An aspiring beat producer would greatly benefit from a formal education in music, with an emphasis on composition and musicianship. A degree in recording arts, coupled with study in musical composition is also applicable. This career demands an individual who is familiar with digital recording software, as well as the basic operation of studio recording consoles. Knowledge of Pro Tools and similar applications such as Logic, Sonar, and Live is necessary. As the practice of a beat producer relates to rap and hip-hop, this person should be especially familiar with these genres and their musical qualities. Of course, an appreciation for multiple styles of music will enrich your work and further train your artistic ear. What marks a great producer is the ability to be not only innovative but also diverse.

 

What to Expect

Beat producers trying to make a career tend to proliferate their material in nightclubs and small concert venues as the primary means of building a reputation. There, these individuals court local DJs and MCs to listen to their tracks and consider their material for use on original songs. You must know who the artists are, where they play, and be plugged in to the scene in order to gather clients. It is generally wise to start small and then work your way up to start scouting major talent. Expect to receive very little money in the early days of your career, as few are willing to take a risk on an unproven talent. However, once your portfolio boasts several successful tracks sourced by recording artists, you may reevaluate your fee accordingly. In considering representation for copyright licensing of your work through a performing rights organization like BMI or publishing through a company like Harry Fox, beat producers would be considered composers or songwriters, depending on their level of work on the creation of original songs. 

Originally posted at http://getinmedia.com/careers/beat-producer