SlideShare a Scribd company logo
1 of 67
Download to read offline
ch.ch.ch.ch.Changes 
How technology-driven changes have impacted musicians 
Kristin Thomson, Future of Music Coalition @kristinthomson
3 obvious and 
7 not-so-obvious things 
that have changed recently 
for working musicians.
1. Vast increase in 
number of platforms to 
share, distribute, license 
or sell music.
Physical retail Radio 
Record shops 
Big box retailers 
Indie shops 
Commercial radio 
NPR 
College radio 
Direct sales 
Mailorder 
Record clubs 
Sales at shows 
Prior to 1998
Physical retail Radio 
Record shops 
Big box retailers 
Indie shops 
Commercial radio 
NPR 
College radio 
Direct sales 
Mailorder 
Record clubs 
Sales at shows 
+ + + 
Digital retail Webcasters/satellite 
Direct sales
+ + + 
Online audio Interactive streaming 
Online video
1. Vast increase in number of platforms 
+ 
Positive 
! 
More options for consumers/music listeners 
More efficient delivery 
Music is way more accessible
1. Vast increase in number of platforms 
_ 
Negative 
! 
For listeners, “the paradox of choice” 
Dispersion of fans/consumers 
Have to be present on multiple platforms 
The “unbundling” of music (more about that later)
2. Musicians’ greatly 
improved access to 
the music marketplace.
Prior to 1998 
Retail Radio 
Limited by shelf space 
Controlled by big 
distributors and retailers 
Major labels a priority 
Tightly controlled playlists 
Payola 
Major label dominated
2. Greatly improved access to marketplace. 
CD Baby: $49 per album TuneCore: $30 year 1/$50 each 
following year 
91% of revenues back to artist 100% of revenues back to artist
2. Greatly improved access to marketplace. 
Other “free” or low cost platforms and tools 
! 
YouTube 
Soundcloud 
! 
Pandora 
Sirius XM 
! 
! 
! 
! 
Websites/blogs 
Bandcamp 
! 
Facebook 
Twitter 
Instagram
2. Greatly improved access to marketplace. 
Positive 
! 
No barriers to entry! 
Easy, affordable access to digital stores and platforms 
Drastically reduced overhead costs 
No need for distribution deal 
Direct access to fans 
! 
+
2. Greatly improved access to marketplace. 
“It’s not a novel observation on my part, but 
technology has leveled the field of distribution to a 
great degree.” 
! 
– jazz manager interviewee 
! 
!
2. Greatly improved access to marketplace. 
_ 
Negative 
! 
No barriers to entry! 
Way more “noisy” 
More competition for consumers’ attention/wallet share 
Competing with the entire history of recorded music 
For composers, significant drop in what they can charge
3. Increased number of music-related 
revenue streams.
Prior to 1998 
Composition income Sound recording income 
Mechanical royalties 
Public performance royalties 
Synch licenses 
Jingle writing/composing for hire/ 
commissions 
Physical retail sales 
Physical mailorder 
Selling music at shows 
Master use synchs
Composition income Sound recording income 
Mechanical royalties 
Public performance royalties 
Synch licenses 
Jingle writing/composing for hire/ 
commissions 
Physical retail sales 
Physical mailorder 
Selling music at shows 
Master use synchs 
Digital retail sales 
Digital performance royalties 
Interactive stream payments 
YouTube partner program 
Cloud storage payments 
AARC royalties 
+ 
+ 
Streaming mechanical royalties 
Mechanicals for cloud storage 
Lyric display royalties 
YouTube partner program
42 Revenue Streams 
money.futureofmusic.org
Revenue Streams: 
Existing, Expanded 
and New 
money.futureofmusic.org
3. More revenue streams 
Positive 
! 
More opportunities to make money from your 
compositions, recordings, brand. 
Shift from one-time purchases to license-based 
payments for each listen. 
Development of entirely new revenue streams. 
! 
+
3. More revenue streams 
_ 
Negative 
! 
Atomization of former income streams. 
Many new streams are fractions of pennies. 
Lengthening of payback period. 
Discovery and payment increasingly dependent on 
proper metadata and attribution. 
!
4. Disruption of conventional 
music business models, and 
7 related results.
4. The unbundling of music 
(Re)creation of the singles market. Great for consumers, 
and a key factor in success of iTunes store model but... 
> Significant drop in revenue from retail sales 
> Significant drop in mechanical royalties to composers 
> Reported drop in label support for artists 
!
4. The unbundling of music: decreased retail sales 
“The thing that’s decreased—this won’t surprise you—is the 
income from recording. By that I mean the royalties, the 
advances, all of the income streams that go along with the 
recordings. It’s all decreased significantly over the last 10 
years.” 
! 
– Contemporary Chamber Ensemble interviewee
4. The unbundling of music: decreased retail sales 
“Mechanical royalties have just been decimated; the 
statement that was 20 pages long and involved six figures 
has turned into this statement that’s 100 pages long and 
doesn’t even make five figures. It’s probably, I’d say, at least 
a 75% decline in mechanical royalties…” 
! 
– Nashville Songwriter interviewee
4. The unbundling of music 
50% 
23% 
22% 
Self-identified songwriters/composers: 4% 
Over the past five years, have the 
mechanical royalties for the reproduction 
of your songs/compositions increased, 
stayed the same or decreased? 
! 
Money from Music survey. N=1062 
Half of songwriters/composers say 
mechanical royalties have decreased.
5. Direct support from fans possible...and necessary 
No label support, lower revenues overall means artists are 
asking their fans to: 
> pre-purchase albums 
> support tours 
> buy premium offerings 
Great for many musicians, but does add to workload. 
!
6. Increased corporate presence 
42% 
35% 
9% 
14% 
Self-identified recording artists with a 
relationship to an indie or major label: 
Thinking back over the past five years, 
has your financial support from your 
label(s) increased, stayed the same or 
decreased? 
! 
Money from Music survey. N=381 
42% of signed artists say that 
label support has decreased.
6. Increased corporate presence 
Reported drop in label support for artists means 
musicians looking to other sources for support. 
> tour sponsorships 
> product endorsements 
> sync license deals 
!
6. Increased corporate presence 
“[...] it definitely seems that people in general are bummed 
that record sales are so shitty and while I would love to get 
paid more for records I, long ago, gave up chasing that 
particular ghost and have looked for money elsewhere.” 
! 
– Damian Kulash, rock band guitarist and singer 
!
7. More shows, and higher expectations 
Drop in “traditional” revenue streams and tour support 
means that bands are more dependent that ever on 
income from live performance. 
> more shows 
> more attention (and money) paid to stagecraft 
! 
!
7. More shows, and higher expectations 
“Do I think that touring has become significantly more 
expensive? Yes. I think the bar has been raised for 
production…I think it’s required now and because of that it 
costs more to do that.” 
! 
– hip hop business manager 
!
8. It’s way easier to get paid 
+ 
Digital sales are very well documented. 
No more dealing with distributors, hassling 
phone calls, getting stiffed on payments. 
! 
!
9. Market segmentation for the win 
+ 
Platforms like Bandcamp make it possible to: 
> use variable pricing 
> bundle physical and digital goods together 
> sell directly to fans 
! 
! 
!
9. Market segmentation for the win 
“We have our own download card system in place. 
I, for one, definitely use that when I’m playing out, 
particularly with the vinyl. There’s a download card taped to 
the back of each record, and I try to do the same with 
t-shirts as well.” 
! 
– Tom, indie label owner and performer
10. Musicians can control more of their career 
+ 
Prior to 1998: if you aspired to be on commercial radio, in 
big retail chains, playing big shows, you needed to sign 
with a major label and relinquish your copyrights. 
! 
Now: artists can more easily retain control of copyrights 
and doing licensing deals, hire consultants for expertise. 
!
{ 
Thinking back over the past five years, how have emerging 
technologies and the internet affected your musical career? Strongly agree/Agree Neutral Disagree/Strongly disagree Not applicable 
I can communicate 
I can communicate with my fans directly 
66.3 
11.6 
1.2 
20.9 
with my fans directly 
It’s more competitive! 
It's more competitive than ever 
63.9 
18.9 
4.6 
12.7 
than ever 
I can manage my ! 
I can manage my career myself 
55.7 
23.7 
8.0 
12.6 
career myself 
I can I collaborate can collaboratewith other creators 
! 
53.5 
21.8 
2.7 
22.1 
with other creators 
My day-to-day work! 
My day-to-day work is more about promotion than creation 
36.8 
24.1 
18.4 
20.7 
is more about promotion! 
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 
N = 4617 Data from Artist Revenue Streams 
February 2012. money.futureofmusic.org 
5 with! 
greatest agreement
10. Musicians can control more of their career 
! 
“There’s enormous structural differences from the day-to-day 
blue-collar existence of the musician in terms of how 
you organize a tour.” 
– indie rock composer, performer, sideman 
!
Recent changes are a double-edged sword 
+ 
Empowered music creators. 
Created efficiencies. 
Greater access to the music marketplace. 
Direct connection to fans. 
Possible to retain control of rights, and self-manage 
career. 
!
Recent changes are a double-edged sword 
_ 
Atomized income streams. 
Support structures are changing. 
More competitive than ever. 
Created new work and additional responsibilities for 
musicians, whether it’s managing an online presence or 
self-releasing your music digitally. 
!
The 
answer 
Jenny
The 
answer 
Jenny 
There 
is 
no 
single 
solution 
to 
the 
challenges 
facing 
musicians 
and 
songwriters.
Be everywhere.
Leverage the internet to 
offer different prices and bundles.
Play favorites.
Re-assert exclusivity.
Super-serve your fans.
Maintain control.
Measuring the impact of these changes.
FMC resources 
Artist Revenue Streams Research 
money.futureofmusic.org 
42 Revenue Streams 
Revenue Streams: 
Existing, Expanded New 
money.futureofmusic.org/40-revenue-streams/ money.futureofmusic.org/revenue-streams-existing- 
expanded-new/
FMC resources 
Music and How the 
Money Flows infographic 
HOW THE MONEY 
FLOWS BACK TO 
songwriters, artists, 
publishers & labels 
How are musicians and songwriters compensated when 
their music is played on the radio, sold on digital platforms, 
broadcast radio terrestrial broadcast of any AM or FM station 
webcast, or streamed on interactive services? 
C PROs ASCAP, BMI, SESAC 
songwriter 
publisher 
performance of composition 
In the US, terrestrial broadcasters 
do not pay performers or 
sound recording copyright owners 
performance of sound recording 
performance of composition 
For digital stores and on-demand streams, 
* At the end of 2012, Universal Music 
Publishing Group and Sony/ATV-EMI 
pulled their digital rights from ASCAP 
and BMI, seeking to get a higher rate 
by negotiating directly with webcasters. 
how the money flows depends on what entity negotiated the license. 
For record labels that have a direct deal with services: 
digital sale 
iTunes • Amazon 
Google Play • eMusic 
SR record label 
publisher songwriter 
mechanical reproduction of composition 
artist/band* 
sale of sound recording 
9.1¢ 
/track 
10-50% 
* Rate of payment from label to artist/band 
depends on terms of contract, and whether 
digital sale is classified as a sale or a license. 
0.5% Sound Recording 
Special Payments Fund # 
musicians 
# Labels contribute a small percent of 
sound recording sales income. If 
recording was made under the AFM’s 
recording agreement, payments are 
disbursed to musicians who were paid 
scale wages during the recording session. 
C PROs ASCAP, BMI, SESAC 
futureofmusic.C UMPG and Sony ATV-EMI* org/moneyflow 
* At the end of 2012, Universal Music 
For record labels that are represented by a digital aggregator/distributor: 
SR aggregator 
mechanical reproduction of composition 
artist/band* 
sale of sound recording 
publisher songwriter 
IODA/The Orchard 
record label 
9.1¢ 
/track 
@50% 
85% 
AFM & SAG-AFTRA Fund 
webcast 
or digital performance 
Pandora • Sirius XM • NPR streaming 
any webcast stations 
C PROs ASCAP, BMI, SESAC* 
SR SoundExchange 
songwriter 
publisher 
record label 
performer(s) 
50% 
45% 
5% 
performance of composition 
digital performance of sound recording background singers 
and musicians 
UMPG and Sony ATV-EMI* UMPG and Sony ATV-EMI 
C songwriters 
songwriter 
songwriter 
on-demand 
stream 
Spotify • Rdio • Rhapsody 
SR record label 
artist/band* 
streaming mechanical royalty 
licensed use of sound recording 10-50% 
10.5% 
minus payment 
to PROs 
publisher 
performance of composition 
publishers 
Publishing Group and Sony/ATV-EMI 
pulled their digital rights from ASCAP 
and BMI, seeking to get a higher rate 
by negotiating directly with services. 
UMPG and Sony ATV-EMI 
songwriters 
PROs ASCAP, BMI, SESAC 
songwriter 
publisher 
on-demand 
C 
* Rate of payment from label to 
artist/band depends on terms of 
contract, and whether digital sale 
is classified as a sale or a license. 
* Rate of payment from label to 
artist/band depends on terms of 
contract, and whether digital sale 
is classified as a sale or a license. 
performance of composition 
big labels 
indie labels 
For radio and radio-like services, 
blanket licenses determine who gets paid, and how much. 
digital sale 
iTunes • Amazon 
Google Play • eMusic 
New Business Models 
Digital Distribution and 
how to participate 
futureofmusic.org/nbm futureofmusic.org/dd
Kristin Thomson | Future of Music Coalition 
@future_of_music 
@kristinthomson 
slides posted at money.futureofmusic.org/contentcamp

More Related Content

What's hot

Reorganization of music industry
Reorganization of music industryReorganization of music industry
Reorganization of music industryTamam Guseinova
 
SWOT Analysis - Sony Music Entertainment
SWOT Analysis - Sony Music EntertainmentSWOT Analysis - Sony Music Entertainment
SWOT Analysis - Sony Music EntertainmentArtinMai
 
Live Music Streaming Opportunity Valuation
Live Music Streaming Opportunity ValuationLive Music Streaming Opportunity Valuation
Live Music Streaming Opportunity ValuationMC[CO] Labs
 
How Beyonce Disrupts The Music Industry
How Beyonce Disrupts The Music IndustryHow Beyonce Disrupts The Music Industry
How Beyonce Disrupts The Music IndustryPatrick Van der Pijl
 
MDIA 3307 Tyler Hoisington
MDIA 3307 Tyler HoisingtonMDIA 3307 Tyler Hoisington
MDIA 3307 Tyler Hoisingtontylerhoisington
 
Innovation in the music industry
Innovation in the music industryInnovation in the music industry
Innovation in the music industryDaniela Bartos
 
The pinoy music consumer today
The pinoy music consumer todayThe pinoy music consumer today
The pinoy music consumer todayJong Azores
 
Personal Music industry
Personal Music  industryPersonal Music  industry
Personal Music industryYazan Iwidat
 
Evaluation Question 3B
Evaluation Question 3BEvaluation Question 3B
Evaluation Question 3BElora Elora
 
Connect or Die: How to survive in a Music 2.0 world
Connect or Die: How to survive in a Music 2.0 worldConnect or Die: How to survive in a Music 2.0 world
Connect or Die: How to survive in a Music 2.0 worldMartafy!
 
Globalization in the music industry
Globalization in the music industryGlobalization in the music industry
Globalization in the music industryTeyland
 
Leadership in the music industry
Leadership in the music industryLeadership in the music industry
Leadership in the music industryTeyland
 
Spotify vs Apple Music: a strategic fight for the music streaming industry
Spotify vs Apple Music: a strategic fight for the music streaming industrySpotify vs Apple Music: a strategic fight for the music streaming industry
Spotify vs Apple Music: a strategic fight for the music streaming industryFederico Catellani
 
The Future of Music: What Every Business Can Learn From The State of The Musi...
The Future of Music: What Every Business Can Learn From The State of The Musi...The Future of Music: What Every Business Can Learn From The State of The Musi...
The Future of Music: What Every Business Can Learn From The State of The Musi...Altimeter, a Prophet Company
 
Nielsen Music – The Fan: Understanding How They Drive Change
Nielsen Music – The Fan: Understanding How They Drive ChangeNielsen Music – The Fan: Understanding How They Drive Change
Nielsen Music – The Fan: Understanding How They Drive ChangeMusic Business Association
 
Live music events...
Live music events...Live music events...
Live music events...Iffi Saheb
 
The Future of Digital Music and Artistry - Brian Solis at Midem 2015
The Future of Digital Music and Artistry - Brian Solis at Midem 2015The Future of Digital Music and Artistry - Brian Solis at Midem 2015
The Future of Digital Music and Artistry - Brian Solis at Midem 2015Brian Solis
 
Chune PM Awards Presentation
Chune PM Awards PresentationChune PM Awards Presentation
Chune PM Awards PresentationKern Elliott
 

What's hot (19)

Reorganization of music industry
Reorganization of music industryReorganization of music industry
Reorganization of music industry
 
SWOT Analysis - Sony Music Entertainment
SWOT Analysis - Sony Music EntertainmentSWOT Analysis - Sony Music Entertainment
SWOT Analysis - Sony Music Entertainment
 
Live Music Streaming Opportunity Valuation
Live Music Streaming Opportunity ValuationLive Music Streaming Opportunity Valuation
Live Music Streaming Opportunity Valuation
 
How Beyonce Disrupts The Music Industry
How Beyonce Disrupts The Music IndustryHow Beyonce Disrupts The Music Industry
How Beyonce Disrupts The Music Industry
 
Music Industry
Music IndustryMusic Industry
Music Industry
 
MDIA 3307 Tyler Hoisington
MDIA 3307 Tyler HoisingtonMDIA 3307 Tyler Hoisington
MDIA 3307 Tyler Hoisington
 
Innovation in the music industry
Innovation in the music industryInnovation in the music industry
Innovation in the music industry
 
The pinoy music consumer today
The pinoy music consumer todayThe pinoy music consumer today
The pinoy music consumer today
 
Personal Music industry
Personal Music  industryPersonal Music  industry
Personal Music industry
 
Evaluation Question 3B
Evaluation Question 3BEvaluation Question 3B
Evaluation Question 3B
 
Connect or Die: How to survive in a Music 2.0 world
Connect or Die: How to survive in a Music 2.0 worldConnect or Die: How to survive in a Music 2.0 world
Connect or Die: How to survive in a Music 2.0 world
 
Globalization in the music industry
Globalization in the music industryGlobalization in the music industry
Globalization in the music industry
 
Leadership in the music industry
Leadership in the music industryLeadership in the music industry
Leadership in the music industry
 
Spotify vs Apple Music: a strategic fight for the music streaming industry
Spotify vs Apple Music: a strategic fight for the music streaming industrySpotify vs Apple Music: a strategic fight for the music streaming industry
Spotify vs Apple Music: a strategic fight for the music streaming industry
 
The Future of Music: What Every Business Can Learn From The State of The Musi...
The Future of Music: What Every Business Can Learn From The State of The Musi...The Future of Music: What Every Business Can Learn From The State of The Musi...
The Future of Music: What Every Business Can Learn From The State of The Musi...
 
Nielsen Music – The Fan: Understanding How They Drive Change
Nielsen Music – The Fan: Understanding How They Drive ChangeNielsen Music – The Fan: Understanding How They Drive Change
Nielsen Music – The Fan: Understanding How They Drive Change
 
Live music events...
Live music events...Live music events...
Live music events...
 
The Future of Digital Music and Artistry - Brian Solis at Midem 2015
The Future of Digital Music and Artistry - Brian Solis at Midem 2015The Future of Digital Music and Artistry - Brian Solis at Midem 2015
The Future of Digital Music and Artistry - Brian Solis at Midem 2015
 
Chune PM Awards Presentation
Chune PM Awards PresentationChune PM Awards Presentation
Chune PM Awards Presentation
 

Similar to How Tech Has Impacted Musicians

Ten ways that technology-driven changes have impacted musicians
Ten ways that technology-driven changes have impacted musicians Ten ways that technology-driven changes have impacted musicians
Ten ways that technology-driven changes have impacted musicians Kristin Thomson
 
Music Business Threats & Opportunities
Music Business Threats & OpportunitiesMusic Business Threats & Opportunities
Music Business Threats & OpportunitiesChristopher Baker
 
Survey of the Music Business - Griffin - Lecture 1 Fall 2019
Survey of the Music Business - Griffin - Lecture 1 Fall 2019Survey of the Music Business - Griffin - Lecture 1 Fall 2019
Survey of the Music Business - Griffin - Lecture 1 Fall 2019Eric Griffin
 
Matthew Hawn - "Do Labels Still Matter?" - sounds digital
Matthew Hawn - "Do Labels Still Matter?" - sounds digitalMatthew Hawn - "Do Labels Still Matter?" - sounds digital
Matthew Hawn - "Do Labels Still Matter?" - sounds digitalMatthew Hawn
 
Section b answer on music industry
Section b answer on music industrySection b answer on music industry
Section b answer on music industryBethany Stephenson
 
Industrial context of Music Videos
Industrial context of Music Videos Industrial context of Music Videos
Industrial context of Music Videos AyaahBachri
 
Red Bull Records - Marketing Analysis
Red Bull Records - Marketing AnalysisRed Bull Records - Marketing Analysis
Red Bull Records - Marketing AnalysisCuttime, Inc.
 
What is music marketing? | Virginie Berger, Don't believe the hype | MIDEM ex...
What is music marketing? | Virginie Berger, Don't believe the hype | MIDEM ex...What is music marketing? | Virginie Berger, Don't believe the hype | MIDEM ex...
What is music marketing? | Virginie Berger, Don't believe the hype | MIDEM ex...midem
 
5 nmt industry presentation
5 nmt industry presentation5 nmt industry presentation
5 nmt industry presentationppermaul
 
Universal music group
Universal music groupUniversal music group
Universal music groupguest52ec5f7
 
July 2012 - MBJ
July 2012 - MBJJuly 2012 - MBJ
July 2012 - MBJRenee Lau
 
Audio Branding Perspectives for Retailers and F&B - by Express In Music
Audio Branding Perspectives for Retailers and F&B - by Express In MusicAudio Branding Perspectives for Retailers and F&B - by Express In Music
Audio Branding Perspectives for Retailers and F&B - by Express In MusicJerryChen-Background Music System B2B
 
Production companies -_dave
Production companies -_daveProduction companies -_dave
Production companies -_daveEllie Skipper
 
Final script
Final scriptFinal script
Final scriptSeyiiO
 
Music industry theory work
Music industry theory workMusic industry theory work
Music industry theory workDaniel Grimley
 
Informational Communication Technology
Informational Communication TechnologyInformational Communication Technology
Informational Communication TechnologyLori Gilbert
 
Music promotions ignite slideshow
Music promotions ignite slideshowMusic promotions ignite slideshow
Music promotions ignite slideshowSabastian Barron
 

Similar to How Tech Has Impacted Musicians (20)

Ten ways that technology-driven changes have impacted musicians
Ten ways that technology-driven changes have impacted musicians Ten ways that technology-driven changes have impacted musicians
Ten ways that technology-driven changes have impacted musicians
 
Future of the music industry
Future of the music industryFuture of the music industry
Future of the music industry
 
Music Business Threats & Opportunities
Music Business Threats & OpportunitiesMusic Business Threats & Opportunities
Music Business Threats & Opportunities
 
Survey of the Music Business - Griffin - Lecture 1 Fall 2019
Survey of the Music Business - Griffin - Lecture 1 Fall 2019Survey of the Music Business - Griffin - Lecture 1 Fall 2019
Survey of the Music Business - Griffin - Lecture 1 Fall 2019
 
Matthew Hawn - "Do Labels Still Matter?" - sounds digital
Matthew Hawn - "Do Labels Still Matter?" - sounds digitalMatthew Hawn - "Do Labels Still Matter?" - sounds digital
Matthew Hawn - "Do Labels Still Matter?" - sounds digital
 
Section b answer on music industry
Section b answer on music industrySection b answer on music industry
Section b answer on music industry
 
Industrial context of Music Videos
Industrial context of Music Videos Industrial context of Music Videos
Industrial context of Music Videos
 
Red Bull Records - Marketing Analysis
Red Bull Records - Marketing AnalysisRed Bull Records - Marketing Analysis
Red Bull Records - Marketing Analysis
 
What is music marketing? | Virginie Berger, Don't believe the hype | MIDEM ex...
What is music marketing? | Virginie Berger, Don't believe the hype | MIDEM ex...What is music marketing? | Virginie Berger, Don't believe the hype | MIDEM ex...
What is music marketing? | Virginie Berger, Don't believe the hype | MIDEM ex...
 
5 nmt industry presentation
5 nmt industry presentation5 nmt industry presentation
5 nmt industry presentation
 
Universal music group
Universal music groupUniversal music group
Universal music group
 
Universal music group
Universal music groupUniversal music group
Universal music group
 
July 2012 - MBJ
July 2012 - MBJJuly 2012 - MBJ
July 2012 - MBJ
 
Audio Branding Perspectives for Retailers and F&B - by Express In Music
Audio Branding Perspectives for Retailers and F&B - by Express In MusicAudio Branding Perspectives for Retailers and F&B - by Express In Music
Audio Branding Perspectives for Retailers and F&B - by Express In Music
 
Production companies -_dave
Production companies -_daveProduction companies -_dave
Production companies -_dave
 
Final script
Final scriptFinal script
Final script
 
Universal music group
Universal music groupUniversal music group
Universal music group
 
Music industry theory work
Music industry theory workMusic industry theory work
Music industry theory work
 
Informational Communication Technology
Informational Communication TechnologyInformational Communication Technology
Informational Communication Technology
 
Music promotions ignite slideshow
Music promotions ignite slideshowMusic promotions ignite slideshow
Music promotions ignite slideshow
 

More from Kristin Thomson

Metadata is Money at Musicbiz 2017
Metadata is Money at Musicbiz 2017Metadata is Money at Musicbiz 2017
Metadata is Money at Musicbiz 2017Kristin Thomson
 
Great ideas in music distribution
Great ideas in music distributionGreat ideas in music distribution
Great ideas in music distributionKristin Thomson
 
Metadata is Money at MusicBiz 2016. Setting up a release
Metadata is Money at MusicBiz 2016. Setting up a releaseMetadata is Money at MusicBiz 2016. Setting up a release
Metadata is Money at MusicBiz 2016. Setting up a releaseKristin Thomson
 
Metadata for musicians: setting up release
Metadata for musicians: setting up releaseMetadata for musicians: setting up release
Metadata for musicians: setting up releaseKristin Thomson
 
Metadata for musicians: discovery, attribution and payment
Metadata for musicians: discovery, attribution and paymentMetadata for musicians: discovery, attribution and payment
Metadata for musicians: discovery, attribution and paymentKristin Thomson
 
Metadata for musicians at barcamp philly 2015
Metadata for musicians at barcamp philly 2015Metadata for musicians at barcamp philly 2015
Metadata for musicians at barcamp philly 2015Kristin Thomson
 
Music Business and Copyright Toronto 2015
Music Business and Copyright Toronto 2015Music Business and Copyright Toronto 2015
Music Business and Copyright Toronto 2015Kristin Thomson
 
Metadata for artists at music biz 2015
Metadata for artists at music biz 2015Metadata for artists at music biz 2015
Metadata for artists at music biz 2015Kristin Thomson
 
Metadata for Musicians: session 1
Metadata for Musicians: session 1Metadata for Musicians: session 1
Metadata for Musicians: session 1Kristin Thomson
 
Metadata for Musicians: session 2
Metadata for Musicians: session 2Metadata for Musicians: session 2
Metadata for Musicians: session 2Kristin Thomson
 
Digital revenue streams for sound recordings
Digital revenue streams for sound recordingsDigital revenue streams for sound recordings
Digital revenue streams for sound recordingsKristin Thomson
 
All the revenue streams for musicians
All the revenue streams for musiciansAll the revenue streams for musicians
All the revenue streams for musiciansKristin Thomson
 
Denver Music Summit: musicians' revenue pies
Denver Music Summit: musicians' revenue piesDenver Music Summit: musicians' revenue pies
Denver Music Summit: musicians' revenue piesKristin Thomson
 
Artistsandhealthinsuranceresults100113
Artistsandhealthinsuranceresults100113Artistsandhealthinsuranceresults100113
Artistsandhealthinsuranceresults100113Kristin Thomson
 

More from Kristin Thomson (14)

Metadata is Money at Musicbiz 2017
Metadata is Money at Musicbiz 2017Metadata is Money at Musicbiz 2017
Metadata is Money at Musicbiz 2017
 
Great ideas in music distribution
Great ideas in music distributionGreat ideas in music distribution
Great ideas in music distribution
 
Metadata is Money at MusicBiz 2016. Setting up a release
Metadata is Money at MusicBiz 2016. Setting up a releaseMetadata is Money at MusicBiz 2016. Setting up a release
Metadata is Money at MusicBiz 2016. Setting up a release
 
Metadata for musicians: setting up release
Metadata for musicians: setting up releaseMetadata for musicians: setting up release
Metadata for musicians: setting up release
 
Metadata for musicians: discovery, attribution and payment
Metadata for musicians: discovery, attribution and paymentMetadata for musicians: discovery, attribution and payment
Metadata for musicians: discovery, attribution and payment
 
Metadata for musicians at barcamp philly 2015
Metadata for musicians at barcamp philly 2015Metadata for musicians at barcamp philly 2015
Metadata for musicians at barcamp philly 2015
 
Music Business and Copyright Toronto 2015
Music Business and Copyright Toronto 2015Music Business and Copyright Toronto 2015
Music Business and Copyright Toronto 2015
 
Metadata for artists at music biz 2015
Metadata for artists at music biz 2015Metadata for artists at music biz 2015
Metadata for artists at music biz 2015
 
Metadata for Musicians: session 1
Metadata for Musicians: session 1Metadata for Musicians: session 1
Metadata for Musicians: session 1
 
Metadata for Musicians: session 2
Metadata for Musicians: session 2Metadata for Musicians: session 2
Metadata for Musicians: session 2
 
Digital revenue streams for sound recordings
Digital revenue streams for sound recordingsDigital revenue streams for sound recordings
Digital revenue streams for sound recordings
 
All the revenue streams for musicians
All the revenue streams for musiciansAll the revenue streams for musicians
All the revenue streams for musicians
 
Denver Music Summit: musicians' revenue pies
Denver Music Summit: musicians' revenue piesDenver Music Summit: musicians' revenue pies
Denver Music Summit: musicians' revenue pies
 
Artistsandhealthinsuranceresults100113
Artistsandhealthinsuranceresults100113Artistsandhealthinsuranceresults100113
Artistsandhealthinsuranceresults100113
 

Recently uploaded

Princess Jahan's Tuition Classes, a story for entertainment
Princess Jahan's Tuition Classes, a story for entertainmentPrincess Jahan's Tuition Classes, a story for entertainment
Princess Jahan's Tuition Classes, a story for entertainmentazuremorn
 
THE MEDIC, A STORY for entertainment.docx
THE MEDIC, A STORY for entertainment.docxTHE MEDIC, A STORY for entertainment.docx
THE MEDIC, A STORY for entertainment.docxazuremorn
 
Biswanath Byam Samiti Open Quiz 2022 by Qui9 Grand Finale
Biswanath Byam Samiti Open Quiz 2022 by Qui9 Grand FinaleBiswanath Byam Samiti Open Quiz 2022 by Qui9 Grand Finale
Biswanath Byam Samiti Open Quiz 2022 by Qui9 Grand FinaleQui9 (Ultimate Quizzing)
 
What Life Would Be Like From A Different Perspective (saltyvixenstories.com)
What Life Would Be Like From A Different Perspective (saltyvixenstories.com)What Life Would Be Like From A Different Perspective (saltyvixenstories.com)
What Life Would Be Like From A Different Perspective (saltyvixenstories.com)Salty Vixen Stories & More
 
karaoke songs customise for portable 2.docx
karaoke songs customise for portable  2.docxkaraoke songs customise for portable  2.docx
karaoke songs customise for portable 2.docxPOPCOMTABUKCITY
 
A Spotlight on Darla Leigh Pittman Rodgers: Aaron Rodgers' Mother
A Spotlight on Darla Leigh Pittman Rodgers: Aaron Rodgers' MotherA Spotlight on Darla Leigh Pittman Rodgers: Aaron Rodgers' Mother
A Spotlight on Darla Leigh Pittman Rodgers: Aaron Rodgers' Motherget joys
 
Behind the Scenes The Life of Enzo Zelocchi, a Hollywood Film Producer.pdf
Behind the Scenes The Life of Enzo Zelocchi, a Hollywood Film Producer.pdfBehind the Scenes The Life of Enzo Zelocchi, a Hollywood Film Producer.pdf
Behind the Scenes The Life of Enzo Zelocchi, a Hollywood Film Producer.pdfEnzo Zelocchi Fan Page
 
Transform Your Space with Poster Memorabilia's Collection
Transform Your Space with Poster Memorabilia's CollectionTransform Your Space with Poster Memorabilia's Collection
Transform Your Space with Poster Memorabilia's CollectionPoster Memorabilia Reviews
 
Fight Scene Storyboard (Action/Adventure Animation)
Fight Scene Storyboard (Action/Adventure Animation)Fight Scene Storyboard (Action/Adventure Animation)
Fight Scene Storyboard (Action/Adventure Animation)finlaygoodall2
 
Cabin by the azure lake, the story of a lady and a crocodile
Cabin by the azure lake, the story of a lady and a crocodileCabin by the azure lake, the story of a lady and a crocodile
Cabin by the azure lake, the story of a lady and a crocodileazuremorn
 
Flying Avocado Cat Cryptocurrency Created, Coded, Generated and Named by Grok...
Flying Avocado Cat Cryptocurrency Created, Coded, Generated and Named by Grok...Flying Avocado Cat Cryptocurrency Created, Coded, Generated and Named by Grok...
Flying Avocado Cat Cryptocurrency Created, Coded, Generated and Named by Grok...TeslaStakeHolder
 
The lady in Surtout, an old story that happened in our neighbourhood
The lady in Surtout, an old story  that happened in our neighbourhoodThe lady in Surtout, an old story  that happened in our neighbourhood
The lady in Surtout, an old story that happened in our neighbourhoodazuremorn
 
Uk-NO1 Amil In Karachi Best Amil In Karachi Bangali Baba In Karachi Aamil In ...
Uk-NO1 Amil In Karachi Best Amil In Karachi Bangali Baba In Karachi Aamil In ...Uk-NO1 Amil In Karachi Best Amil In Karachi Bangali Baba In Karachi Aamil In ...
Uk-NO1 Amil In Karachi Best Amil In Karachi Bangali Baba In Karachi Aamil In ...Amil baba
 
Bald Philosopher, a story for entertainment.docx
Bald Philosopher, a story for entertainment.docxBald Philosopher, a story for entertainment.docx
Bald Philosopher, a story for entertainment.docxazuremorn
 
ECOLUXE pre-ESPYS Ultimate Sports Lounge 2024
ECOLUXE pre-ESPYS Ultimate Sports Lounge 2024ECOLUXE pre-ESPYS Ultimate Sports Lounge 2024
ECOLUXE pre-ESPYS Ultimate Sports Lounge 2024Durkin Entertainment LLC
 

Recently uploaded (19)

Sincerely, The Friday Club - Farewell Quiz-Finals.pptx
Sincerely, The Friday Club - Farewell Quiz-Finals.pptxSincerely, The Friday Club - Farewell Quiz-Finals.pptx
Sincerely, The Friday Club - Farewell Quiz-Finals.pptx
 
Princess Jahan's Tuition Classes, a story for entertainment
Princess Jahan's Tuition Classes, a story for entertainmentPrincess Jahan's Tuition Classes, a story for entertainment
Princess Jahan's Tuition Classes, a story for entertainment
 
S10_E02_How to Pimp Social Media 101.pptx
S10_E02_How to Pimp Social Media 101.pptxS10_E02_How to Pimp Social Media 101.pptx
S10_E02_How to Pimp Social Media 101.pptx
 
THE MEDIC, A STORY for entertainment.docx
THE MEDIC, A STORY for entertainment.docxTHE MEDIC, A STORY for entertainment.docx
THE MEDIC, A STORY for entertainment.docx
 
Biswanath Byam Samiti Open Quiz 2022 by Qui9 Grand Finale
Biswanath Byam Samiti Open Quiz 2022 by Qui9 Grand FinaleBiswanath Byam Samiti Open Quiz 2022 by Qui9 Grand Finale
Biswanath Byam Samiti Open Quiz 2022 by Qui9 Grand Finale
 
What Life Would Be Like From A Different Perspective (saltyvixenstories.com)
What Life Would Be Like From A Different Perspective (saltyvixenstories.com)What Life Would Be Like From A Different Perspective (saltyvixenstories.com)
What Life Would Be Like From A Different Perspective (saltyvixenstories.com)
 
karaoke songs customise for portable 2.docx
karaoke songs customise for portable  2.docxkaraoke songs customise for portable  2.docx
karaoke songs customise for portable 2.docx
 
A Spotlight on Darla Leigh Pittman Rodgers: Aaron Rodgers' Mother
A Spotlight on Darla Leigh Pittman Rodgers: Aaron Rodgers' MotherA Spotlight on Darla Leigh Pittman Rodgers: Aaron Rodgers' Mother
A Spotlight on Darla Leigh Pittman Rodgers: Aaron Rodgers' Mother
 
Behind the Scenes The Life of Enzo Zelocchi, a Hollywood Film Producer.pdf
Behind the Scenes The Life of Enzo Zelocchi, a Hollywood Film Producer.pdfBehind the Scenes The Life of Enzo Zelocchi, a Hollywood Film Producer.pdf
Behind the Scenes The Life of Enzo Zelocchi, a Hollywood Film Producer.pdf
 
Transform Your Space with Poster Memorabilia's Collection
Transform Your Space with Poster Memorabilia's CollectionTransform Your Space with Poster Memorabilia's Collection
Transform Your Space with Poster Memorabilia's Collection
 
Fight Scene Storyboard (Action/Adventure Animation)
Fight Scene Storyboard (Action/Adventure Animation)Fight Scene Storyboard (Action/Adventure Animation)
Fight Scene Storyboard (Action/Adventure Animation)
 
Cabin by the azure lake, the story of a lady and a crocodile
Cabin by the azure lake, the story of a lady and a crocodileCabin by the azure lake, the story of a lady and a crocodile
Cabin by the azure lake, the story of a lady and a crocodile
 
Flying Avocado Cat Cryptocurrency Created, Coded, Generated and Named by Grok...
Flying Avocado Cat Cryptocurrency Created, Coded, Generated and Named by Grok...Flying Avocado Cat Cryptocurrency Created, Coded, Generated and Named by Grok...
Flying Avocado Cat Cryptocurrency Created, Coded, Generated and Named by Grok...
 
The lady in Surtout, an old story that happened in our neighbourhood
The lady in Surtout, an old story  that happened in our neighbourhoodThe lady in Surtout, an old story  that happened in our neighbourhood
The lady in Surtout, an old story that happened in our neighbourhood
 
Uk-NO1 Amil In Karachi Best Amil In Karachi Bangali Baba In Karachi Aamil In ...
Uk-NO1 Amil In Karachi Best Amil In Karachi Bangali Baba In Karachi Aamil In ...Uk-NO1 Amil In Karachi Best Amil In Karachi Bangali Baba In Karachi Aamil In ...
Uk-NO1 Amil In Karachi Best Amil In Karachi Bangali Baba In Karachi Aamil In ...
 
Moveable Feast_Travel-Lifestyle-Culture Quiz.pptx
Moveable Feast_Travel-Lifestyle-Culture Quiz.pptxMoveable Feast_Travel-Lifestyle-Culture Quiz.pptx
Moveable Feast_Travel-Lifestyle-Culture Quiz.pptx
 
Bald Philosopher, a story for entertainment.docx
Bald Philosopher, a story for entertainment.docxBald Philosopher, a story for entertainment.docx
Bald Philosopher, a story for entertainment.docx
 
S10_E06-Sincerely,The Friday Club- Prelims Farewell Quiz.pptx
S10_E06-Sincerely,The Friday Club- Prelims Farewell Quiz.pptxS10_E06-Sincerely,The Friday Club- Prelims Farewell Quiz.pptx
S10_E06-Sincerely,The Friday Club- Prelims Farewell Quiz.pptx
 
ECOLUXE pre-ESPYS Ultimate Sports Lounge 2024
ECOLUXE pre-ESPYS Ultimate Sports Lounge 2024ECOLUXE pre-ESPYS Ultimate Sports Lounge 2024
ECOLUXE pre-ESPYS Ultimate Sports Lounge 2024
 

How Tech Has Impacted Musicians

  • 1. ch.ch.ch.ch.Changes How technology-driven changes have impacted musicians Kristin Thomson, Future of Music Coalition @kristinthomson
  • 2. 3 obvious and 7 not-so-obvious things that have changed recently for working musicians.
  • 3. 1. Vast increase in number of platforms to share, distribute, license or sell music.
  • 4. Physical retail Radio Record shops Big box retailers Indie shops Commercial radio NPR College radio Direct sales Mailorder Record clubs Sales at shows Prior to 1998
  • 5. Physical retail Radio Record shops Big box retailers Indie shops Commercial radio NPR College radio Direct sales Mailorder Record clubs Sales at shows + + + Digital retail Webcasters/satellite Direct sales
  • 6. + + + Online audio Interactive streaming Online video
  • 7. 1. Vast increase in number of platforms + Positive ! More options for consumers/music listeners More efficient delivery Music is way more accessible
  • 8. 1. Vast increase in number of platforms _ Negative ! For listeners, “the paradox of choice” Dispersion of fans/consumers Have to be present on multiple platforms The “unbundling” of music (more about that later)
  • 9. 2. Musicians’ greatly improved access to the music marketplace.
  • 10. Prior to 1998 Retail Radio Limited by shelf space Controlled by big distributors and retailers Major labels a priority Tightly controlled playlists Payola Major label dominated
  • 11. 2. Greatly improved access to marketplace. CD Baby: $49 per album TuneCore: $30 year 1/$50 each following year 91% of revenues back to artist 100% of revenues back to artist
  • 12. 2. Greatly improved access to marketplace. Other “free” or low cost platforms and tools ! YouTube Soundcloud ! Pandora Sirius XM ! ! ! ! Websites/blogs Bandcamp ! Facebook Twitter Instagram
  • 13. 2. Greatly improved access to marketplace. Positive ! No barriers to entry! Easy, affordable access to digital stores and platforms Drastically reduced overhead costs No need for distribution deal Direct access to fans ! +
  • 14. 2. Greatly improved access to marketplace. “It’s not a novel observation on my part, but technology has leveled the field of distribution to a great degree.” ! – jazz manager interviewee ! !
  • 15. 2. Greatly improved access to marketplace. _ Negative ! No barriers to entry! Way more “noisy” More competition for consumers’ attention/wallet share Competing with the entire history of recorded music For composers, significant drop in what they can charge
  • 16. 3. Increased number of music-related revenue streams.
  • 17. Prior to 1998 Composition income Sound recording income Mechanical royalties Public performance royalties Synch licenses Jingle writing/composing for hire/ commissions Physical retail sales Physical mailorder Selling music at shows Master use synchs
  • 18. Composition income Sound recording income Mechanical royalties Public performance royalties Synch licenses Jingle writing/composing for hire/ commissions Physical retail sales Physical mailorder Selling music at shows Master use synchs Digital retail sales Digital performance royalties Interactive stream payments YouTube partner program Cloud storage payments AARC royalties + + Streaming mechanical royalties Mechanicals for cloud storage Lyric display royalties YouTube partner program
  • 19. 42 Revenue Streams money.futureofmusic.org
  • 20. Revenue Streams: Existing, Expanded and New money.futureofmusic.org
  • 21. 3. More revenue streams Positive ! More opportunities to make money from your compositions, recordings, brand. Shift from one-time purchases to license-based payments for each listen. Development of entirely new revenue streams. ! +
  • 22.
  • 23. 3. More revenue streams _ Negative ! Atomization of former income streams. Many new streams are fractions of pennies. Lengthening of payback period. Discovery and payment increasingly dependent on proper metadata and attribution. !
  • 24. 4. Disruption of conventional music business models, and 7 related results.
  • 25. 4. The unbundling of music (Re)creation of the singles market. Great for consumers, and a key factor in success of iTunes store model but... > Significant drop in revenue from retail sales > Significant drop in mechanical royalties to composers > Reported drop in label support for artists !
  • 26. 4. The unbundling of music: decreased retail sales “The thing that’s decreased—this won’t surprise you—is the income from recording. By that I mean the royalties, the advances, all of the income streams that go along with the recordings. It’s all decreased significantly over the last 10 years.” ! – Contemporary Chamber Ensemble interviewee
  • 27. 4. The unbundling of music: decreased retail sales “Mechanical royalties have just been decimated; the statement that was 20 pages long and involved six figures has turned into this statement that’s 100 pages long and doesn’t even make five figures. It’s probably, I’d say, at least a 75% decline in mechanical royalties…” ! – Nashville Songwriter interviewee
  • 28. 4. The unbundling of music 50% 23% 22% Self-identified songwriters/composers: 4% Over the past five years, have the mechanical royalties for the reproduction of your songs/compositions increased, stayed the same or decreased? ! Money from Music survey. N=1062 Half of songwriters/composers say mechanical royalties have decreased.
  • 29. 5. Direct support from fans possible...and necessary No label support, lower revenues overall means artists are asking their fans to: > pre-purchase albums > support tours > buy premium offerings Great for many musicians, but does add to workload. !
  • 30. 6. Increased corporate presence 42% 35% 9% 14% Self-identified recording artists with a relationship to an indie or major label: Thinking back over the past five years, has your financial support from your label(s) increased, stayed the same or decreased? ! Money from Music survey. N=381 42% of signed artists say that label support has decreased.
  • 31. 6. Increased corporate presence Reported drop in label support for artists means musicians looking to other sources for support. > tour sponsorships > product endorsements > sync license deals !
  • 32. 6. Increased corporate presence “[...] it definitely seems that people in general are bummed that record sales are so shitty and while I would love to get paid more for records I, long ago, gave up chasing that particular ghost and have looked for money elsewhere.” ! – Damian Kulash, rock band guitarist and singer !
  • 33. 7. More shows, and higher expectations Drop in “traditional” revenue streams and tour support means that bands are more dependent that ever on income from live performance. > more shows > more attention (and money) paid to stagecraft ! !
  • 34. 7. More shows, and higher expectations “Do I think that touring has become significantly more expensive? Yes. I think the bar has been raised for production…I think it’s required now and because of that it costs more to do that.” ! – hip hop business manager !
  • 35. 8. It’s way easier to get paid + Digital sales are very well documented. No more dealing with distributors, hassling phone calls, getting stiffed on payments. ! !
  • 36. 9. Market segmentation for the win + Platforms like Bandcamp make it possible to: > use variable pricing > bundle physical and digital goods together > sell directly to fans ! ! !
  • 37.
  • 38.
  • 39.
  • 40. 9. Market segmentation for the win “We have our own download card system in place. I, for one, definitely use that when I’m playing out, particularly with the vinyl. There’s a download card taped to the back of each record, and I try to do the same with t-shirts as well.” ! – Tom, indie label owner and performer
  • 41. 10. Musicians can control more of their career + Prior to 1998: if you aspired to be on commercial radio, in big retail chains, playing big shows, you needed to sign with a major label and relinquish your copyrights. ! Now: artists can more easily retain control of copyrights and doing licensing deals, hire consultants for expertise. !
  • 42. { Thinking back over the past five years, how have emerging technologies and the internet affected your musical career? Strongly agree/Agree Neutral Disagree/Strongly disagree Not applicable I can communicate I can communicate with my fans directly 66.3 11.6 1.2 20.9 with my fans directly It’s more competitive! It's more competitive than ever 63.9 18.9 4.6 12.7 than ever I can manage my ! I can manage my career myself 55.7 23.7 8.0 12.6 career myself I can I collaborate can collaboratewith other creators ! 53.5 21.8 2.7 22.1 with other creators My day-to-day work! My day-to-day work is more about promotion than creation 36.8 24.1 18.4 20.7 is more about promotion! 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% N = 4617 Data from Artist Revenue Streams February 2012. money.futureofmusic.org 5 with! greatest agreement
  • 43. 10. Musicians can control more of their career ! “There’s enormous structural differences from the day-to-day blue-collar existence of the musician in terms of how you organize a tour.” – indie rock composer, performer, sideman !
  • 44. Recent changes are a double-edged sword + Empowered music creators. Created efficiencies. Greater access to the music marketplace. Direct connection to fans. Possible to retain control of rights, and self-manage career. !
  • 45. Recent changes are a double-edged sword _ Atomized income streams. Support structures are changing. More competitive than ever. Created new work and additional responsibilities for musicians, whether it’s managing an online presence or self-releasing your music digitally. !
  • 47. The answer Jenny There is no single solution to the challenges facing musicians and songwriters.
  • 49.
  • 50.
  • 51. Leverage the internet to offer different prices and bundles.
  • 52.
  • 54.
  • 56.
  • 58.
  • 59.
  • 61.
  • 62.
  • 63. Measuring the impact of these changes.
  • 64.
  • 65. FMC resources Artist Revenue Streams Research money.futureofmusic.org 42 Revenue Streams Revenue Streams: Existing, Expanded New money.futureofmusic.org/40-revenue-streams/ money.futureofmusic.org/revenue-streams-existing- expanded-new/
  • 66. FMC resources Music and How the Money Flows infographic HOW THE MONEY FLOWS BACK TO songwriters, artists, publishers & labels How are musicians and songwriters compensated when their music is played on the radio, sold on digital platforms, broadcast radio terrestrial broadcast of any AM or FM station webcast, or streamed on interactive services? C PROs ASCAP, BMI, SESAC songwriter publisher performance of composition In the US, terrestrial broadcasters do not pay performers or sound recording copyright owners performance of sound recording performance of composition For digital stores and on-demand streams, * At the end of 2012, Universal Music Publishing Group and Sony/ATV-EMI pulled their digital rights from ASCAP and BMI, seeking to get a higher rate by negotiating directly with webcasters. how the money flows depends on what entity negotiated the license. For record labels that have a direct deal with services: digital sale iTunes • Amazon Google Play • eMusic SR record label publisher songwriter mechanical reproduction of composition artist/band* sale of sound recording 9.1¢ /track 10-50% * Rate of payment from label to artist/band depends on terms of contract, and whether digital sale is classified as a sale or a license. 0.5% Sound Recording Special Payments Fund # musicians # Labels contribute a small percent of sound recording sales income. If recording was made under the AFM’s recording agreement, payments are disbursed to musicians who were paid scale wages during the recording session. C PROs ASCAP, BMI, SESAC futureofmusic.C UMPG and Sony ATV-EMI* org/moneyflow * At the end of 2012, Universal Music For record labels that are represented by a digital aggregator/distributor: SR aggregator mechanical reproduction of composition artist/band* sale of sound recording publisher songwriter IODA/The Orchard record label 9.1¢ /track @50% 85% AFM & SAG-AFTRA Fund webcast or digital performance Pandora • Sirius XM • NPR streaming any webcast stations C PROs ASCAP, BMI, SESAC* SR SoundExchange songwriter publisher record label performer(s) 50% 45% 5% performance of composition digital performance of sound recording background singers and musicians UMPG and Sony ATV-EMI* UMPG and Sony ATV-EMI C songwriters songwriter songwriter on-demand stream Spotify • Rdio • Rhapsody SR record label artist/band* streaming mechanical royalty licensed use of sound recording 10-50% 10.5% minus payment to PROs publisher performance of composition publishers Publishing Group and Sony/ATV-EMI pulled their digital rights from ASCAP and BMI, seeking to get a higher rate by negotiating directly with services. UMPG and Sony ATV-EMI songwriters PROs ASCAP, BMI, SESAC songwriter publisher on-demand C * Rate of payment from label to artist/band depends on terms of contract, and whether digital sale is classified as a sale or a license. * Rate of payment from label to artist/band depends on terms of contract, and whether digital sale is classified as a sale or a license. performance of composition big labels indie labels For radio and radio-like services, blanket licenses determine who gets paid, and how much. digital sale iTunes • Amazon Google Play • eMusic New Business Models Digital Distribution and how to participate futureofmusic.org/nbm futureofmusic.org/dd
  • 67. Kristin Thomson | Future of Music Coalition @future_of_music @kristinthomson slides posted at money.futureofmusic.org/contentcamp