Kristin Thomson, Future of Music Coalition @kristinthomson
Musicians’ earnings from digital
platforms
money.futureofmusic.org/about-the-project/
How have these changes impacted musicians’ ability to generate revenue based on their creative work?
Source: RIAA via Future of the Music Business
Research question
What percentage of musicians’ income comes from each possible revenue source?
money.futureofmusic.org/research-questions/
42 revenue streams
Mechanical royalties
Streaming mechanicals
Mechanicals for cloud storage,
lockers
Commissions
Composing original works for
broadcast
Sheet music
Lyric display
Label advances
Label support
Retail sales
Sales at shows
Digital downloads
Cloud storage payments
Digital performance royalties
Interactive service payments
YouTube partner program
Master use synchs
Performances
Salaried work
Session work in studio
Sesson work live
Merchandise
Persona licensing
Fan funding
YouTube/video partnership program
Sponsorships
Grants
Teaching
Master classes
money.futureofmusic.org/40-revenue-streams/
Composition income Sound recording income
Mechanical royaltiesPublic performance royalties
Synch licensesJingle writing/composing for
hire/commissions
Prior to 1998
Physical retail salesPhysical mailorder
Selling music at showsMaster use synchs
Composition income Sound recording income
Mechanical royaltiesPublic performance royalties
Synch licensesJingle writing/composing for
hire/commissions
Physical retail salesPhysical mailorder
Selling music at showsMaster use synchs
Digital download salesDigital performance royaltiesInteractive stream payments
Cloud storage paymentsYouTube partner program
++
Streaming mechanical royaltiesMechanicals for cloud storage
Lyric display royaltiesYouTube partner program
42 Revenue Streams
Served as the genesis of the project, a framework for the research, and lives on as an outcome.
money.futureofmusic.org/40-revenue-streams/
Revenue Streams:Existing, Expanded and New
money.futureofmusic.org/revenue-streams-existing-expanded-new/
• 80 in-person interviews
six financial case studies
over 5,300 completed surveys
Qualitative and quantitative data collectedfrom US-based musicians and composers via:
money.futureofmusic.org/findings/
Collected between 2010 and the end of 2011.
Composition income Sound recording income
Mechanical royaltiesPublic performance royalties
Synch licensesJingle writing/composing for
hire/commissions
Physical retail salesPhysical mailorder
Selling music at showsMaster use synchs
++
Streaming mechanical royaltiesMechanicals for cloud storage
Lyric display royaltiesYouTube partner program
Digital download salesDigital performance royaltiesInteractive stream payments
Cloud storage paymentsYouTube partner program
Q12: Survey respondents asked to allocate money among these categories:
Composition income/being a composer
Sound recording income/being a recording artist
Performance income from guarantees/percent of
door
Salaried performer
Session player (live and in studio)
Brand-related income
Knowledge of craft/teaching
money.futureofmusic.org/revenue-types/
6% of income in
past 12 months derived from
sound recordings
Aggregate revenue pie for all survey respondents
N = 5371
Range of revenue derived from sound recordings for all survey respondents
66% reported 0% of income from sound recordings
Nu
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22% reported 1% - 10% of income from sound recordings
Revenue derived from sound recordings in past 12 months, by primary genre
Perceived changes in revenue from sound recordings over prior five years
6% more report a decrease in revenue than an increase
Percent of survey respondents. N = 4447
41% say changes in revenue from SR is “not applicable"
“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
– Nashville Songwriter interviewee
“Have you ever earned any income from....”
Physical sales
Sales at shows
Digital sales
Synchs
Interactive streamingservices
Digital performanceroyalties
all long-path respondents
“Have you ever earned any income from....”full-time musicians
Physical sales
Sales at shows
Digital sales
Synchs
Interactive streamingservices
Digital performanceroyalties
“Have you ever earned any income from....”primary genre: rock
Physical sales
Sales at shows
Digital sales
Synchs
Interactive streamingservices
Digital performanceroyalties
Digital download sales
“iTunes is a specific technological development that’s been helpful to
revenue…”
– Jazz manager
Digital download sales
“Digital sales have boosted and that’s one thing instance where
we’ve been lucky. Whoever those people are who buy iTunes singles seem to like us. So we have that
going for us in that we sell a shit ton of those.”
– Guitarist in platinum selling rock band
Sales at shows
“What puts the money in our pockets from record sales is
concerts.”
- Contemporary chamber ensemble
Interactive service royalties
“Yeah, it’s still small, it’s still not a lot of revenue but every month it
gets better…or every quarter, whenever we get our statements,
it’s better.”
- Rock band manager
Digital performance royalties
“...the royalties that are collected for featured artists for digital broadcast by SoundExchange has become a
real source of income…”
- Jazz publisher
23% more report decrease
even split
41% morereport increase
39% morereport increase
31% more report increase
5% morereport increase
Perceived changes in revenue from sound recordings over prior five years, by category
Physical sales
Sales at shows
Digital sales
Synchs
Interactive streamingservices
Digital performanceroyalties
Technology has had a
significant impact – both
good and bad – on the sound
recording landscape.
money.futureofmusic.org/sound-recording-income/
Sound recordings are part of
a bigger revenue picture.
money.futureofmusic.org/sound-recording-income/
money.futureofmusic.org/case-studies/
Jazz bandleader Chamber music group Professional orchestra member
Jazz sideman Indie rock composer/performer Background vocalist
Future(s) for musicians.
money.futureofmusic.org/sound-recording-income/
money.futureofmusic.org/findings/
Data memos and financial case studies
Kristin Thomson | Future of Music Coalition
@future_of_music
@kristinthomson