Post on 18-Dec-2014
description
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 questionWhat percentage of musicians’ income comes from each possible revenue source?
money.futureofmusic.org/research-questions/
42 revenue streams
Mechanical royaltiesStreaming mechanicalsMechanicals for cloud storage, lockersCommissionsComposing original works for broadcastSheet musicLyric displayLabel advancesLabel supportRetail salesSales at showsDigital downloadsCloud storage paymentsDigital performance royaltiesInteractive service paymentsYouTube partner programMaster use synchsPerformancesSalaried workSession work in studioSesson work liveMerchandisePersona licensingFan fundingYouTube/video partnership programSponsorshipsGrantsTeachingMaster classes
money.futureofmusic.org/40-revenue-streams/
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
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 download salesDigital performance royaltiesInteractive stream payments
Cloud storage paymentsYouTube partner program
++
Streaming mechanical royaltiesMechanicals for cloud storage
Lyric display royaltiesYouTube partner program
42 Revenue StreamsServed 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 incomeMechanical royalties
Public performance royaltiesSynch licenses
Jingle 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 composerSound recording income/being a recording artistPerformance income from guarantees/percent of doorSalaried performerSession player (live and in studio)Brand-related incomeKnowledge 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
3552
1183
237 144 53 73 20 7 27 16 9 44 0
500
1000
1500
2000
2500
3000
3500
4000
0% 1 to 10% 11 to 20%
21 to 30%
31 to 40%
41 to 50%
51 to 60%
61 to 70%
71 to 80%
81 to 90%
91 to 99%
100%
Percent of music-related income derived from sound recordings in past 12 months. N=5371
66% reported 0% of income from sound recordings
Num
ber o
f sur
vey
resp
onde
nts
22% reported 1% - 10% of income from sound recordings
1%
4%
6%
12%
14%
6%
0% 5% 10% 15% 20%
Classical (N=1863)
Jazz (N=872)
Country (N=262)
Hip hop (N=93)
Rock (N=569)
All (N=5371)
Percent of music-related income in past 12 months
Income from sound recordings, by primary genre
Revenue derived from sound recordings in past 12 months, by primary genre
16% 18% 22% 3% 41%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
N=4447
Changes in revenue from sound recordings over past five years
Increased Stayed the same Decreased I don't know Not applicable
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
17%
13%
35%
62%
79%
74%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Synchronizations
Digital performance royalties
Interactive streaming services
Digital downloads
Sales at shows
Physical sales
Percent of long-path respondents who are participating
“Have you ever earned any income from....”
Physical sales
Sales at shows
Digital sales
Synchs
Interactive streamingservices
Digital performanceroyalties
all long-path respondents
19%
16%
37%
66%
79%
76%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Synchronizations
Digital performance royalties
Interactive streaming services
Digital downloads
Sales at shows
Physical sales
Percent of long-path respondents who are participating
“Have you ever earned any income from....”full-time musicians
Physical sales
Sales at shows
Digital sales
Synchs
Interactive streamingservices
Digital performanceroyalties
31%
16%
36%
72%
83%
74%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Synchronizations
Digital performance royalties
Interactive streaming services
Digital downloads
Sales at shows
Physical sales
Percent of long-path respondents who are participating
“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
39%
45%
50%
58%
33%
26%
24%
30%
28%
20%
31%
20%
34%
14%
11%
17%
33%
49%
4%
11%
11%
5%
2%
4%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Synchs (N=312)
Digital performance royalties (N=140)
Interactive streaming services (N=362)
Digital sales (N=646)
Sales at shows (N=818)
Physical sales (N=772)
Percent of long-path respondents
Changes in revenue from sound recordings over past five years Increased Stayed the same Decreased I don't know Decline to answer
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/
Live Performance
77.8%
Grants and Awards 7.5%
Record Label Advance
5.0%
Commission 2.6% Sideman
1.8% Record Sales 1.7%
PRO Royalties 0.8%
Other 2.8%
Salary: orchestra
64.8%
Freelance: live 27.3%
Knowledge of Craft 3.1%
Freelance: studio 1.9% Prize Money
1.8%
Recording Income 0.8%
Radio Royalties
0.3%
Sideman: Performance
32.4%
Live Performance 15.0%
Administrator 14.9%
Grant 11.6%
Teaching 10.5% Sideman:
Performance + Organizer
8.0%
Sideman: Recording
4.3%
PRO Royalties 2.1%
Recording 0.9%
CD Sales on the Road
0.4%
Live Performance
30.5%
Salary 29.8%
CD Sales on the Road
12.1%
Publishing Royalties
9.4% PRO
Royalties 6.2%
Publishing Advance
5.6%
Record Sales 3.5%
Session Musician
1.5%
Producer 0.7%
TV Royalties
0.4%
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