Sorry, the gig is up on free music. It isn't making bands rich, or even making ends meet, for that matter. If you need proof of this, check out this discussion thread about Spotify - it contains real numbers and testimonials about how paltry the payouts on free access are (http://digitalmusicnews.com/stories/012511pointzero). It's not just Lady Gaga that's getting the shaft.
The rest is also mostly a work of fiction. Because for the most part, free isn't driving more people to shows, selling more t-shirts, or making real fans buy the album. Just talk to a band trying to make this work. It sounds good on paper or on a conference panel, but most bands are having trouble turning these theories into reality. Still, free is a necessary evil for any artist that wants exposure - you just have to live with it, like crappy weather. Otherwise you're basically putting your music in jail.
Which is why it's hilarious to hear YouTube talking about how free is now even better than paid. Except the only problem is that paid also sucks! "If you were to look at the numbers for Lady Gaga, the number of views she gets on YouTube versus downloads that she gets on iTunes, obviously, a single download on iTunes will pay her more than a single view on YouTube," product manager Phil Farhi told Evolver.fm. "But when you look at the traffic — the number of people that are coming back and watching her videos over and over again, watching her videos before they download the song, or discovering them on YouTube — you can see how that scale can compete with a paid service."
So, the fringe artist with record-setting YouTube views somehow proves the theory? Or, represents something even remotely typical for even well-supported artists? This soggy logic quickly falls apart, though another YouTube executive pointed to big-time earnings by big-label partners. "Our larger music partners on the site are making millions of dollars per month," YouTube director of content partnerships Chris Maxcy offered. There's also a bridge for sale on eBay.
And the best part? YouTube and Google are making billions per month! But this gets even worse, because separately, some music executives are wondering whether this freebie bazaar is really better than P2P, BitTorrent, or any number of protocols for illegal content transfer. "The argument that 'at least we have them in a legal place' [with services like Spotify and YouTube] isn't making any sense," one top-ranked major label executive told Digital Music News at Midem. "Because all of that is based on the notion that you can monetize this all somehow, which basically boils down to hope. It's not a business model."
Paul Resnikoff, publisher.
Thursday, February 17, 2011
Monday, February 7, 2011
32 Different Ways Artists Can Make Money...
But which ones are really producing serious revenues? Here 32 different possible possible revenue streams for artists, as compiled by the Future of Music Coalition (FMC). The group is currently conducting a survey of musicians to figure out which streams are working the best.
A. If you are a composer or songwriter, here are possible revenue streams from your musical compositions...
1. Retail sales: Mechanical royalties from physical sales of recordings of your songs at stores, concerts or via mail order.
2. Digital sales: Mechanical royalties from digital sales via online services (CD Baby, iTunes, Amazon, eMusic, Rhapsody, MySpace Music)
3. Sheet music sales.
4. PRO Royalties: Royalties for the public performance of your work (airplay on radio, TV, movies, jukeboxes, live performance and foreign royalties, and home recording and foreign levy payments) as distributed to you by ASCAP/BMI/SESAC.
5. Advances from publishing companies during a publishing deal.
6. Payments from publishers for litigation settlements.
7. Commissions for works.
B. If you are a performer (think Patsy Cline), possible revenue from sound recordings...
8. Digital performance royalties: Royalties for the digital performance of your recordings — airplay on satellite radio, webcast stations, cable TV stations — distributed to you by SoundExchange.
9. Advances from record labels that are not just reimbursement of recording or touring expenses.
10. Label payments for tour support or recording expenses.
11. Payments from labels for litigation settlements.
12. AARC royalties: collected for digital recording of your songs, foreign private copying levies, and foreign record rental royalties, distributed to US artists by AARC.
13. AFM Payments (TV, Film): Payments from the Film Musicians Secondary Markets Fund to performers on recordings used in TV and other secondary uses.
14. AFM Payments (Recordings): Sound Recording Special Payments Fund to performers for the sales of recorded music
15. AFM/AFTRA Payments: Payments from the AFM/AFTRA Intellectual Property Rights Distribution Fund (distributes recording and performance royalties to the non-featured artists)
C. Possible revenue from licensing your musical composition or your sound recording...
16. Ringtone Sales: Mechanical revenue from ringtone sales
17. Synch Licenses: Synchronization royalties based on master rights licensing your song to TV/movies/video games/commercials
18. Sampling Licenses: Licensing fees from other musicians sampling your songs.
D. If you're a performer, possible revenue from live performances...
19. Touring and shows: compensation for playing live shows or performances, including busking.
E. Revenue from a performer's brand...
20. Merchandise sales: t-shirts, posters, etc.
21. Sponsorship: of tour or of a band/artist.
22. Direct financial support from fans/patrons.
23. Ad revenue or other miscellaneous income from your website properties (click-throughs, commissions on Amazon sales, etc.)
24. Acting in television, movies, commercials.
25. Product endorsements.
26. Other licensing of your persona (to video games, comic books, etc.)
F. Revenue from an artist's knowledge of the craft...
27. Work for hire/hired as a studio or live musician or composer
28. Work as a music teacher
29. AFM/AFTRA session payments: Session payments for recording sessions, TV appearances, and performances flowing from synch licenses
30. Producer: income from producing or music direction
G. Other ways a musicians' work can be funded:
31. Government grants.
32. Nonprofit/foundation grants.
A. If you are a composer or songwriter, here are possible revenue streams from your musical compositions...
1. Retail sales: Mechanical royalties from physical sales of recordings of your songs at stores, concerts or via mail order.
2. Digital sales: Mechanical royalties from digital sales via online services (CD Baby, iTunes, Amazon, eMusic, Rhapsody, MySpace Music)
3. Sheet music sales.
4. PRO Royalties: Royalties for the public performance of your work (airplay on radio, TV, movies, jukeboxes, live performance and foreign royalties, and home recording and foreign levy payments) as distributed to you by ASCAP/BMI/SESAC.
5. Advances from publishing companies during a publishing deal.
6. Payments from publishers for litigation settlements.
7. Commissions for works.
B. If you are a performer (think Patsy Cline), possible revenue from sound recordings...
8. Digital performance royalties: Royalties for the digital performance of your recordings — airplay on satellite radio, webcast stations, cable TV stations — distributed to you by SoundExchange.
9. Advances from record labels that are not just reimbursement of recording or touring expenses.
10. Label payments for tour support or recording expenses.
11. Payments from labels for litigation settlements.
12. AARC royalties: collected for digital recording of your songs, foreign private copying levies, and foreign record rental royalties, distributed to US artists by AARC.
13. AFM Payments (TV, Film): Payments from the Film Musicians Secondary Markets Fund to performers on recordings used in TV and other secondary uses.
14. AFM Payments (Recordings): Sound Recording Special Payments Fund to performers for the sales of recorded music
15. AFM/AFTRA Payments: Payments from the AFM/AFTRA Intellectual Property Rights Distribution Fund (distributes recording and performance royalties to the non-featured artists)
C. Possible revenue from licensing your musical composition or your sound recording...
16. Ringtone Sales: Mechanical revenue from ringtone sales
17. Synch Licenses: Synchronization royalties based on master rights licensing your song to TV/movies/video games/commercials
18. Sampling Licenses: Licensing fees from other musicians sampling your songs.
D. If you're a performer, possible revenue from live performances...
19. Touring and shows: compensation for playing live shows or performances, including busking.
E. Revenue from a performer's brand...
20. Merchandise sales: t-shirts, posters, etc.
21. Sponsorship: of tour or of a band/artist.
22. Direct financial support from fans/patrons.
23. Ad revenue or other miscellaneous income from your website properties (click-throughs, commissions on Amazon sales, etc.)
24. Acting in television, movies, commercials.
25. Product endorsements.
26. Other licensing of your persona (to video games, comic books, etc.)
F. Revenue from an artist's knowledge of the craft...
27. Work for hire/hired as a studio or live musician or composer
28. Work as a music teacher
29. AFM/AFTRA session payments: Session payments for recording sessions, TV appearances, and performances flowing from synch licenses
30. Producer: income from producing or music direction
G. Other ways a musicians' work can be funded:
31. Government grants.
32. Nonprofit/foundation grants.
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