Ten ways that technology-driven changes have impacted musicians
-
Upload
kristin-thomson -
Category
Entertainment & Humor
-
view
345 -
download
0
Transcript of Ten ways that technology-driven changes have impacted musicians
![Page 1: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/1.jpg)
ch.ch.ch.ch.Changes
Kristin Thomson, Future of Music Coalition @kristinthomson
How technology-driven changes have impacted musicians
![Page 2: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/2.jpg)
3 obvious and 7 not-so-obvious things that have changed recently for working musicians.
![Page 3: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/3.jpg)
1. Vast increase in number of platforms to share, distribute, license or sell music.
![Page 4: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/4.jpg)
Physical retail Radio
Record shopsBig box retailers
Indie shops
Commercial radioNPR
College radio
Direct sales
MailorderRecord clubs
Sales at shows
Prior to 1998
![Page 5: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/5.jpg)
Physical retail Radio
Record shopsBig box retailers
Indie shops
Commercial radioNPR
College radio
Direct sales
MailorderRecord clubs
Sales at shows
Digital retail Webcasters/satellite
++ +
Direct sales
![Page 6: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/6.jpg)
Interactive streamingOnline audio
++ +
Online video
![Page 7: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/7.jpg)
Positive
• More options for consumers/music listeners • More efficient delivery • Music is way more accessible
1. Vast increase in number of platforms
+
![Page 8: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/8.jpg)
Negative
• For listeners, “the paradox of choice” • Dispersion of fans/consumers to many platforms • Bands have to be present on multiple platforms• The “unbundling” of music (more about that later)
1. Vast increase in number of platforms
_
![Page 9: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/9.jpg)
2. Musicians’ greatly improved access to the music marketplace.
![Page 10: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/10.jpg)
Retail Radio
• Limited by shelf space• Controlled by big distributors and retailers• Major labels a priority
Prior to 1998
• Tightly controlled playlists• Payola• Major label dominated
![Page 11: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/11.jpg)
CD Baby: $49 per album TuneCore: $30 first year$50 each following year
91% of revenues back to artist 100% of revenues back to artist
2. Greatly improved access to marketplace.
![Page 12: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/12.jpg)
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• Snapchat
![Page 13: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/13.jpg)
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.
+
![Page 14: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/14.jpg)
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
2. Greatly improved access to marketplace.
_
![Page 15: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/15.jpg)
“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.
money.futureofmusic.org
![Page 16: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/16.jpg)
3. Increased number of music- related revenue streams.
![Page 17: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/17.jpg)
Composition income Sound recording incomeMechanical royalties
Public performance royaltiesSynch licenses
Jingle writing/composing for hire/commissions
Prior to 1998
Physical retail salesPhysical mailorder
Selling music at showsMaster use synchs
![Page 18: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/18.jpg)
Composition income Sound recording incomeMechanical royalties
Public performance royaltiesSynch licenses
Jingle writing/composing for hire/commissions
Physical retail salesPhysical mailorder
Selling music at showsMaster use synchs
Digital retail salesDigital performance royaltiesInteractive stream payments
YouTube partner programCloud storage payments
AARC royalties
++
Streaming mechanical royaltiesMechanicals for cloud storage
Lyric display royaltiesYouTube partner program
![Page 21: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/21.jpg)
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
+
![Page 22: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/22.jpg)
![Page 23: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/23.jpg)
![Page 24: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/24.jpg)
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.
3. More revenue streams
_
bit.ly/corzometadata
![Page 25: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/25.jpg)
4. Disruption of conventional music business models, and 7 related results.
![Page 26: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/26.jpg)
(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
![Page 27: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/27.jpg)
“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
![Page 28: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/28.jpg)
“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: decreased retail sales
![Page 29: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/29.jpg)
4. The unbundling of music
50%
22%
23%
4%Self-identified songwriters/composers:
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.
![Page 30: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/30.jpg)
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.
5. Direct support from fans possible...and necessary
![Page 31: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/31.jpg)
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.
![Page 32: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/32.jpg)
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
![Page 33: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/33.jpg)
“[...] 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.”
– rock band guitarist and singer
6. Increased corporate presence
![Page 34: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/34.jpg)
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 paid to (and money spent on) stagecraft
7. More shows, and higher expectations
![Page 35: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/35.jpg)
“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
7. More shows, and higher expectations
![Page 36: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/36.jpg)
• Digital sales are very well documented. • No more dealing with distributors, hassling phone calls, getting stiffed on payments.
8. It’s way easier to get paid
+
• There’s just a lot more platforms you need to track and monetize• Accumulation of many tiny payments.
_
![Page 37: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/37.jpg)
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
+
![Page 38: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/38.jpg)
![Page 39: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/39.jpg)
![Page 40: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/40.jpg)
![Page 41: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/41.jpg)
“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.”
– indie label owner and performer
9. Market segmentation for the win
![Page 42: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/42.jpg)
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.
10. Musicians can control more of their career
+
![Page 43: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/43.jpg)
36.8
53.5
55.7
63.9
66.3
24.1
21.8
23.7
18.9
11.6
18.4
2.7
8.0
4.6
1.2
20.7
22.1
12.6
12.7
20.9
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
My day-to-day work is more about promotion than creation
I can collaborate with other creators
I can manage my career myself
It's more competitive than ever
I can communicate with my fans directly
Strongly agree/Agree Neutral Disagree/Strongly disagree Not applicable
I can communicate with my fans directly
It’s more competitivethan ever
I can manage my career myself
I can collaboratewith other creators
My day-to-day workis more about promotion
than creation
Thinking back over the past five years, how have emerging technologies and the internet affected your musical career?
{N = 4617 Data from Artist Revenue Streams
money.futureofmusic.org
5 w
ithgr
eate
st a
gree
men
t
![Page 44: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/44.jpg)
“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
10. Musicians can control more of their career
![Page 45: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/45.jpg)
• 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
++
![Page 46: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/46.jpg)
• 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.
Recent changes are a double-edged sword
_
![Page 47: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/47.jpg)
The answer
![Page 48: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/48.jpg)
The answer
There is no single solution to the challenges facing musicians and songwriters.
![Page 49: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/49.jpg)
Be everywhere.
![Page 50: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/50.jpg)
![Page 51: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/51.jpg)
![Page 52: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/52.jpg)
Leverage the internet tooffer different prices and bundles.
![Page 53: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/53.jpg)
![Page 54: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/54.jpg)
Play favorites.
![Page 55: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/55.jpg)
![Page 56: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/56.jpg)
Re-assert exclusivity.
![Page 57: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/57.jpg)
![Page 58: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/58.jpg)
Super-serve your fans.
![Page 59: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/59.jpg)
![Page 60: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/60.jpg)
![Page 61: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/61.jpg)
Maintain control.
![Page 62: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/62.jpg)
![Page 63: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/63.jpg)
![Page 64: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/64.jpg)
Measuring the impact of these changes.
![Page 65: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/65.jpg)
![Page 66: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/66.jpg)
FMC resources
Artist Revenue Streams Research
money.futureofmusic.org
42 Revenue StreamsRevenue Streams:
Existing, Expanded New
money.futureofmusic.org/40-revenue-streams/ money.futureofmusic.org/revenue-streams-existing-expanded-new/
![Page 67: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/67.jpg)
FMC resources
HOW THE MONEY FLOWS BACK TO
songwriters, artists,publishers & labels
songwriter
broadcast radio terrestrial broadcast of any AM or FM station
PROs ASCAP, BMI, SESACCsongwriter
publisherperformance of composition
performance of sound recording
How are musicians and songwriters compensated when their music is played on the radio, sold on digital platforms,
webcast, or streamed on interactive services?
For digital stores and on-demand streams, how the money flows depends on what entity negotiated the license.
For record labels that are represented by a digital aggregator/distributor:
For artists who own their sound recording copyrights and use services like CD Baby or TuneCore:
In the US, terrestrial broadcasters do not pay performers or sound recording copyright owners
For record labels that have a direct deal with services:
digital saleiTunes • Amazon
Google Play • eMusic
SR record label artist/band*
mechanical reproduction of composition
sale of sound recording
publisher songwriter
10-50%
9.1¢/track
* 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 #
# 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.
musicians
SR aggregator
artist/band*
mechanical reproduction of composition
sale of sound recording
publisher songwriter
IODA/The Orchardrecord label
9.1¢/track
@50%
85%
SR only relevant if performer recorded + released songs written by others
sale of sound recording
publisher songwriteraggregator artist/bandCD Baby or TuneCore
91-100%
AFM & SAG-AFTRA Fund
webcast or digital performance
Pandora • Sirius XM • NPR streamingany webcast stations
PROs ASCAP, BMI, SESAC*C
SR SoundExchange
songwriter
publisher
record label
performer(s)
50%
45%
5%
performance of composition
digital performance of sound recording background singers and musicians
* 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.
UMPG and Sony ATV-EMI* UMPG and Sony ATV-EMIsongwritersC
songwriter
songwriteron-demand
streamSpotify • Rdio • Rhapsody
SR record label artist/band*
streaming mechanical royalty
licensed use of sound recording 10-50%
10.5%
minus payment to PROs
PROs ASCAP, BMI, SESACCpublisher
performance of composition
publishers
UMPG and Sony ATV-EMI*C * 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 services.
UMPG and Sony ATV-EMIsongwriters
licensed use of sound recording
PROs ASCAP, BMI, SESACsongwriter
publisherperformance of composition
SR aggregator
artist/bandIODA/The Orchard
record label 50%+
85%
on-demandstream
Spotify • Rdio • Rhapsody streaming mechanical royalty
songwriterpublisher*
C
streaming mechanical royalty
licensed use of sound recording
PROs ASCAP, BMI, SESACC
songwriter
publisherperformance of composition
SR aggregator artist/bandCD Baby or TuneCore
on-demandstream
Spotify • Rdio • Rhapsody
* Services pay streaming mechanical royalties to big publishers directly, or to a mechanical licensing agent like Harry Fox, Songtrust or Music Reports, which then pay their publisher members/clients. Because it is very burdensome for self-published songwriters to collect these royalties, both CD Baby and TuneCore have set up services to help self-published songwriter clients to collect them.
* 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.
* Services pay streaming mechanical royalties to big publishers directly, or to a mechanical licensing agent like Harry Fox, Songtrust or Music Reports, which then pay their publisher members/clients. Songwriters need to be proactive in seeking out this revenue.
mechanical licensing agent or publisher*
publisher*
Information compiled by the nonprofit Future of Music Coalition, with gracious assistance from many experts and friends.
Poster edition: September 2013www.futureofmusic.org | money.futureofmusic.org
© Future of Music Coalition 2013
Artist Revenue Streamsmoney.futureofmusic.org
* 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.
mechanical licensing agent or publisher*
performance of composition
performance of composition
big labels
indie labels
self-released
10.5%
minus payment to PROs
9.1¢/track
10.5%
minus payment to PROs
91-100%
For radio and radio-like services, blanket licenses determine who gets paid, and how much.
digital saleiTunes • Amazon
Google Play • eMusic
digital saleiTunes • Amazon
Google Play • eMusic
Music and How the Money Flows infographic
futureofmusic.org/moneyflow
New Business ModelsDigital Distribution and
how to participate
futureofmusic.org/nbm futureofmusic.org/dd
![Page 68: Ten ways that technology-driven changes have impacted musicians](https://reader031.fdocuments.net/reader031/viewer/2022030306/58d00b701a28abad3e8b5263/html5/thumbnails/68.jpg)
Kristin Thomson | Future of Music Coalition @future_of_music@kristinthomson