Why Musicians Make Little While Music Services and Distributors Make Billions [JEFF PRICE] - hypebot

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Aaron C

I totally agree, however, with the over saturation of "music" or "artists" increasing on a daily basis, the value has also decreased tremendously. Where is the quality? The old model at least had a control.

Pedro

Find the bands you love and buy their album on their website or directly from the band at shows. Support them by going to their shows and buying their merchandise. If you really loved them you would buy the album and not one song at a time on some stupid streaming service. Collect art people.

Robert

Streaming already won people, get over it and accept the future. I'm sick of artists trying to guilt trip consumers about streaming their music instead of buying it. Now everyone's getting into the whole "moral" argument about it which has become pretty funny actually (I'm referring to that NPR blog). Streaming is perfectly legal now and will begin to start scaling really soon. Many teens nowadays have never bought music in their lives and never will, they either have spotify on their phones or use youtube. The debate is over really and the reason it's still going on is people's refusal to accept change. If you can't beat em, join em.

Stack Trace

Robert said "If you can't beat em, join em."

So you're saying artists should join the Wall Street folks that are only interested in a huge return on their money? These are the same guys that screwing over the artists, so I'm not sure how that helps anything, especially since the artists would never see the kinds of returns the Wall Street guys will see.

"Streaming is perfectly legal now and will begin to start scaling really soon."

Not in all cases, by any means, and it has already scaled up.

"The debate is over really and the reason it's still going on is people's refusal to accept change."

The debate is far from over. The reason it's still going on is people's refusal to let themselves be screwed over by media giants.

The "Silver Conductor"

The "Silver Conductor" here, I totally agree with where Jeff is coming from,he knows this game in and out.His behind the scenes knowledge is impeccable. I was waiting for AUDIAM to come along after the the TC departure. We are in a whole new space as far as the record industry goes, we as musicians and Indie Artists just need to stay up to speed on ALL the changes that are taking place at the speed of Tweets.
MusicLuv, The SC.
(www.thesilverconductor.com)

GEPES

Poor article. If you're an artist simply trying to gain a living off of record sales then you clearly have no idea of how the music industry works nowadays. OK, maybe physical stores were more obliged to sell music in order to survive, but do you really think that they promoted music instead of themselves? I don't ever recall Tower Records or Virgin ever having to advertise the shit out of certain music because they needed to keep their business alive and not because they were paid by a label to do so... Your article doesn't at all explain how physical stores would actually help artists. Physical stores just promote themselves to get people to come (same concept as a digital store), they just reunite content. Any in-store promotion is simply a bidding war.

I'd rather have my music on a digital service even if it pays less. At least people can find out about me with recommendation. Something digital stores provided and physical ones didn't.

Riffbeeper

So hold back your Gems, Get a straight job n wait until some how, some way, music has value again. Better than your masterpiece being downloaded for free by most people off of a Ford or American Airline Ad on Line.

Riffbeeper

Good Article Jeff! By the way.

Chancius

I think the biggest issue is that musicians have always been a desperate bunch for money and attention. There's only ever been so much room at the top and it doesn't help that that 1-5% have gotten 95-99% of all the publicity and marketing. It's led so many to think that they can make it, too, but in reality being good isn't always enough. Even the most famous musicians had help being in that 1-5% by legal to non-legal means from their labels. There is only one way musicians aren't going to ever be completely screwed over and that's by not signing to major labels and to not sign up with major streaming services, but that's not likely to ever happen. We still live in the best time in the history of music because at least now musicians can record affordable on their own and market themselves worldwide. If your music is good you should be moderately okay which wasn't even the case ten years ago.

www.chancius.com

MusicWizard

I still fail to see the correlation between declining record sales and the negative impact that has/will have on music. There are so many revenue streams outside of just album sales (touring, selling merchandise, licensing and creating content), and now that record labels are being phased out, isn't that ultimately better for artists? True, they may struggle much more earlier on in their career than they might have under a contract with a label. But as you said in your post last year, it's easier and cheaper to create, distribute and market your music than ever before. Personally, I think this is going to dramatically raise the music industry's profile and ultimately reinvigorate people's love of music. I may not have paid for all the music I listened to on Spotify this year, but I've probably been to about 10x more live shows, bought more full length albums and become more interested in bands that I've found on Spotify than I ever would have before music streaming existed. Businesses using artists and their music like commodities is nothing new; but the difference is that now artists don't have to rely solely on those businesses to do everything for them. Maybe that will discourage people from pursuing careers in music but honestly, if you're not willing to accept the financial risks associated with doing what your passionate about, I'd say music is the wrong industry for you.

TonsoTunez

Just a couple of comments on a couple of comments ...

Record stores promoted the hell out of artists - newspaper adds, posters, window displays, end caps, counter displays and usually sales people who knew about music ... Some of this was paid for by the labels but the promotion was heavy ... remember record stores were the place to be before Starbucks.

And, record companies aren't going away - they are becoming more important than ever. Smaller rosters for sure, but, it's all about cutting through the endless amounts of crap on the Net and building and sustaining careers. They really do have this digital thing figured out and still maintain their power and skills in the real world where it counts more than ever.

Theo

Yep I wish one day all musicians would take their music off every platform available. Just for a month.... Let's see how the World would cope with.... silence!

N

You are a prick.

Travis

Great article

CarolS

Many people are quick to blame streaming sites and digital stores as the reason for artists not making as much as they deserve to. Even though they have contributed to it it's not entirely their fault. Most people don't want to buy music because they don't think that it's even worth it. They don't see that the "higher authorities" are the ones that are claiming most of what the artists deserve. It's important for the artists to speak to their audience in way that makes them want to support them through merchandise and concert tickets. Of course, if they have money for tickets and merch why not just buy the music? Some people just don't see that it's worth it. It's the artists job to convince their audience why they should buy the music. Many are content with people not making a dime as long as others are listening, but realistically they need to survive on this because it's their job. Once the individuals find a reason that convinces them that purchasing the music is worth something valid, more and more people will. I'm a teenager in this modern age and I still buy CDs. I love being able to collect what speaks to me in a physical version. I enjoy feeling as if I'm supporting the artform that means the most to me. At the end of the day if everyone stopped focusing on sales as a measure of success then we would find that there is something more important than making money.

Katie King

Jeff does a good job comparing the “old” music industry with the “new” music industry. In the old music industry, the artist, record label, distributor, store, etc. had to sell music to stay in business. Today, music stores/distributors do not even have to sell music to make money. Money is made by gaining market share and by selling other products. This negatively affects the musician in two ways. First, the musician is making less money and is no longer being fairly compensated for their work. Streaming sites like Pandora and Spotify pay the artist less than a penny per stream. Second, the musician is no longer a long term investment. This is because the goal is to get a high financial return as quickly as possible. As Jeff stated, “There is no reason or incentive to build an artist's career or sell the music.”

Amy

Oh, yes there is a reason and I can think of plenty of incentive. How about having really great music for a change? Let's do some thinking outside this box they all seem to want to put everything in. We could really use a modern Motown.

MusicWizard

Why is it the responsibility of the distributor to further an artist's career? They are simply the medium of distribution; they are not responsible for an artist's success beyond making sure that consumers have an easier way to access the artist's music. Stop blaming music streaming services for adapting to consumer demand. The evolution of the music industry in the digital age has made one thing crystal clear: the average consumer does not want to pay for music a la carte. Nothing you, Jeff Price, Thom Yorke or whoever say will ever change that. Artists themselves must stop relying on the sales of their music as the primary means of income and instead see this evolution as an opportunity to take control of the marketing and distribution of their music independent of record labels. In the short-term, they will absolutely struggle but if they're truly as good as they think they are, they have a greater opportunity for long-term success than they ever did under the old music regime.

Will this lead to the eventual death of music? You tell me: one on end of the spectrum, you have an industry rigged to give control to record label executives, whom are incentivized to treat artists like commodities and lock them into contracts that take away the creative control of their own music. On the other end, you have a system that lets anyone upload music immediately to a platform (no middleman) that has a growing audience of 11 million paid subscribers, while giving artist's the lion's share of its revenue.

Perhaps one day Thom Yorke will come out with a whimsical streaming platform that pays artists 100% of the profits and runs on magic and the steady capital of generous benefactors. Until then, streaming services can continue to grow their catalogue of music without the quality of music produced by artists suffering. I think there are just as many good artists out there now as there were 30 years ago. The difference is I don't have to wait for the radio or a record store to tell me who I should like, I can find the music I like myself.

Thos.

The facts are correct. I question the sentiment and cannot find the conclusions.

First, this is not music industry vs. the invaders or old world vs. new world. iTunes, Spotify, Amazon are legitimate members of the music industry, albeit newer. Things evolve. New players come. Old ones go. Setting this up as us vs. they helps no one.

What most bugs me about this article is it ignores the artists' responsibilities. Yes, disgusting practices take advantage of artists. They always have; probably always will. But artists need to understand their industry, it's regulations and laws. The need to educate themselves about licensing and agency. If they license away rights they should not, the company taking advantage is being evil, but that's the artist's responsibility too.

BTW, the artists getting screwed by Spotify and Pandora are the major label artists, not the smaller ones. It's not like droves of people would be buying those smaller artists' songs if the streaming services did not exist. Yes, they deserve fair compensation, however, if it were not for Internet services, a lot of these artists wouldn't be on the map and wouldn't be making money.

As for the labels becoming owners in streaming companies like Spotify, that made sense. They recognized how the industry is changing and adapted. That's pretty shrewd considering how badly the labels dragged their heels and mucked things up for years and years post-Napster. The labels are figuring it out. Now the artists need to do it too.

I do not understand why musicians hold onto pre-Internet beliefs and business models. There is more do it yourself opportunity than ever, provided you work for it. There is less major label opportunity than ever. I'm not even sure what the independent labels do beside print and distribute a few CDs and add artists songs to Amazon, iTunes, Pandora and Spotify (Please enlighten me). A non-label artist can do all of that independently (okay, international distribution is problematic). Heck, anyone can sell on Bandcamp. The tools are there for musicians to access.

The real question isn't what's wrong with the music industry. When I was a kid it was all secret and mysterious. Today anyone can participate on a national and global scale. The real question is, how will you take advantage of it?

Nelson

The issue is that selling music to stores is hard so most of the companies today are made up of kids clicking on keyboards and there is little to no talk to owners or the buyers in stores. Plus more then a few of the modern label managers don't know a whole bunch about making a physical CD let alone a Vinyl record. Moreover the ability to focus Artists and Labels on the need to communicate to fans that stores are open and waiting from them to come get a piece of music is just not happening. Most of the bands we see only push their itunes. BTW I know of one distributor that treat selling music as priority since it built it's whole model on doing just that SELLING. Feel free to contact me if your label/bands wants such a relationship.

Agraham999

Hear that songwriters? Need to stop writing music and start making albums and touring and merchandising. No more hiding behind your music...time to become artists and get some Tshirts made.

Personally I think the debate is just starting.

Agraham999

Have you ever heard of a songwriter? Engineer? Producer? None of these people sell merchandise. They don't tour. They don't sell albums. You think the Beatles would have been "The Beatles" without George Martin? What were they going to pay him with? Proceeds from last nights gig in the pub? Who will discover and nurture new artists? Who is going to help them write better music, learn how to perform better, etc? You have such a short sighted view of how all of this works.

You can't invigorate people's love of music if they don't have any value for it. If you get something for free ($10 a month or a bundled package is basically free), you have no investment in it. In case you haven't noticed, the idea of "free" and cheap basically destroyed the print and news industry. We have fewer choices, terrible writing, and it's all based on how many clicks they can get out of you. Over 1/5 of the people who use to work in news have lost their jobs in the past 10 years...we destroyed that industry when we need solid reporting the most.

What you are going to get is a reduction in the quality of the art form.

Agraham999

Oh I also failed to mention...without the money that has traditionally been from record sales...how will artists pay for studio time? New instruments? Funding a tour to get exposure? What about all the people who work at making instruments, running studios, all the electronic gear? It ain't all basements and Garage Band.

At least with crowdfunding you get people to invest in something up front...they become a partner and a patron, but with streaming, there's no upfront money. There's only hope...and you'll have to push an awful lot of streams to get paid something significant when you consider it's around 16,000 streams to one $.99 sale.

Jenny

Actually, physical record stores have refund privileges, meaning they can refund unsold records back to the record label. The monetary loss usually hits the artist just as much or more than it does the record label, so the incentives for physical record stores and music services to sell music are actually very similar.

What record labels fail to mention is that they are the ones responsible for paying artists in this digital age. For example, Spotify pays Universal Music Group who in turn pays its artists. The truth is that artists never made much money from album sales- they got approximately 10% of the record label's profit during the physical CD age and they're getting about 10& of the profit now. Record labels, after merging with other music subindustries in this digital age, are also garnering the same percentage of profit from digital stores/services as they used to from physical CD sales.

The problems don't lie with the digital music stores/services; they lie with the record labels.

Problem #1: Record labels seem to be stuck in this rut where they're rejecting change because they want more sales. It's true that record labels aren't selling as many songs as they used to. However, that would happen with or without digital music stores's single song downloads/services. Before iTunes, the mp3 was all the rage and people didn't have a valid digital music source to buy from so they pirated instead. Before Spotify, people were buying from iTunes but even more people were downloading illegally to avoid paying. Digital music stores/services aren't hurting record labels; they're bridging gaps that record labels don't seem to want to acknowledge.

Problem #2: The record labels aren't and for a long time haven't been paying artists nearly enough. It's just that they now have something to point fingers at. Before the digital age, artists could only blame their record labels, and which artist would ever be suicidal enough to do that? Now that digital music stores/music services have entered the industry as revenue makers, artists can blame them without the negative repercussions of losing their record contracts.

Pushtogreen

I think getting your music out there to be heard is #1

Thanks,
Push To Green Music
PushToGreen.com
https://soundcloud.com/push-to-green

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