Transcript presentation slides - Music Business Research

Musicians’ earnings
from digital platforms
Kristin Thomson, Future of Music Coalition
@kristinthomson
How have these changes impacted
musicians’ ability to generate revenue
based on their creative work?
money.futureofmusic.org/about-the-project/
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/
Mechanical royalties
Streaming mechanicals
Mechanicals for cloud storage, lockers
Commissions
Composing original works for broadcast
Sheet music
Lyric display
Label advances
42 revenue streams
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
money.futureofmusic.org/40-revenue-streams/
Salaried work
Session work in studio
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
+
Streaming mechanical royalties
Mechanicals for cloud storage
Lyric display royalties
YouTube partner program
+
Digital download sales
Digital performance royalties
Interactive stream payments
Cloud storage payments
YouTube 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/
Qualitative and quantitative data collected
from US-based musicians and composers via:
• 80 in-person interviews
six financial case studies
over 5,300 completed surveys
Collected between 2010 and the end of 2011.
money.futureofmusic.org/findings/
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
+
Streaming mechanical royalties
Mechanicals for cloud storage
Lyric display royalties
YouTube partner program
+
Digital download sales
Digital performance royalties
Interactive stream payments
Cloud storage payments
YouTube 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/
Aggregate revenue pie for all survey respondents
6%
of income in
past 12 months
derived from
sound recordings
N = 5371
Range of revenue derived from sound recordings
for all survey respondents
Number of survey respondents
66%
reported 0% of income
from sound recordings
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
Percent of survey respondents. N = 4447
6% more report a decrease
in revenue than an increase
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....”
all long-path respondents
Physical sales
Sales at shows
Digital sales
Interactive streaming
services
Digital performance
royalties
Synchs
“Have you ever earned any income from....”
full-time musicians
Physical sales
Sales at shows
Digital sales
Interactive streaming
services
Digital performance
royalties
Synchs
“Have you ever earned any income from....”
primary genre: rock
Physical sales
Sales at shows
Digital sales
Interactive streaming
services
Digital performance
royalties
Synchs
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
Perceived changes in revenue from sound recordings
over prior five years, by category
Physical sales
Sales at shows
23% more
report decrease
even split
Digital sales
41% more
report increase
Interactive streaming
services
39% more
report increase
Digital performance
royalties
31% more
report increase
Synchs
5% more
report increase
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/
Jazz bandleader
Chamber music group
Jazz sideman
Indie rock composer/performer
money.futureofmusic.org/case-studies/
Professional orchestra member
Background vocalist
Future(s) for musicians.
money.futureofmusic.org/sound-recording-income/
Data memos and
financial case studies
money.futureofmusic.org/findings/
Kristin Thomson | Future of Music Coalition
@future_of_music
@kristinthomson