csun digital music class - bfm digital
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Pie Charts
Pie Charts
42 Ways to Make Money
SONGWRITER & COMPOSER REVENUE1. Publisher advance2. Mechanical Royalties3. Commissions4. Public Performance (PRO) Royalties5. Composing Original Works for Broadcast6. Synch Licenses7. Sheet Music Sales8. Ringtones Revenue9. ASCAPlus Awards Program10. Publisher Settlement
PERFORMER & RECORDING ARTIST REVENUE11. Salary as Member of Orchestra or Ensemble12. Shows/Performance Fees13. Record Label Advance14. Record Label Support15. Retail Sales16. Digital Sales17. Sales at Shows18. Interactive Service Payments19. Digital Performance Royalties20. AARC Royalties
Source: Future of Music Coalition
Digital Sales
42 Ways to Make Money
PERFORMER & RECORDING ARTIST REVENUE(continued)21. Neighboring Rights Royalties22. AFM/Secondary Markets Fund23. AFM/Sound Recording Special Payments24. AFTRA Contingent Scale25. Label SettlementsSession Musician Revenue26. Session Musician/Sideman Fees for Studio Work27. Session Musician/Sideman Fees for Live Work28. AFM/AFTRA Payments
TEACHING & PRODUCING29. Music Teacher30. Producer31. Honoraria or Speakers Fees
Source: Future of Music Coalition
BRAND RELATED REVENUE32. Merchandise Sales33. Fan Club34. YouTube Partner Program35. Ad Revenue36. Persona Licensing37. Product Endorsements38. Acting Fees
42 Ways to Make Money
FAN, CORPORATE, & FOUNDATION FUNDING 39. Fan Funding40. Sponsorship41. Grants
OTHER42. Arts Administrator
Source: Future of Music Coalition
Digital Music is Social
PEOPLE WANT TO SHARE THEIR MUSIC
WHO ARE YOU?
FREAK THIEF
• ARTISTS• COMPOSERS• PRODUCERS• MUSICIANS
• LABELS• PUBLISHERS• MANAGERS• AGENTS
Before/After
1991 2013
• Yahoo• Netscape• MP3• Napster• Blog• File Sharing• Spice Girls
• Facebook• Youtube• Tweet• iTunes• Netflix• Justin Bieber
2001
WORDS WE DIDN’T KNOW
Now…
????
Word Of The Decade
DISINTERMEDIATION
• LABELS• PUBLISHERS• MANAGERS• AGENTS
• ARTISTS• COMPOSERS• PRODUCERS• MUSICIANS
WHO ARE YOU?
THIEFFREAK
Digital Music Work Flow
Distribution Process
Direct Marketing(optional)
Label/ArtistActivities
Digital Stores
HUNDREDS MORE!
What is the value of music?
Situational Pricing:Same Product…Different
Prices
= $5.00
= $0.35
= $1.50
20 oz bottle
SO WHAT IS THE VALUE OF THIS
BOTTLE OF COKE?
What is the value of music?
= $0.99
= $0.30
= $.001
Warning!: Shameless self-promotion coming up!
SO WHAT IS THE VALUE OF THIS
SONG?
Revenue Streams
STREAMS– Previews– Full Length– Free– Ad-Supported– Subscription– Cloud– Radio
Digital Revenue Streams
DOWNLOADS– Permanent– Tethered– Variable Price– Premium– Upgrade– Dual– Ringtone
Digital Revenue Streams
DOWNLOADSType Price RangePermanent $0.50 - $1.50/tkTethered $0.001 - $0.01/tkVariable Price $0.10 - $0.45/tkPremium $1.25 - $2.50/tkUpgrade $0.25 - $0.50/tkDual $0.79 - $2.50/tkRingtone $0.00 - $3.50/tk
Digital Revenue Streams
STREAMSPrice Range:
$0.00000 - $0.010000
Spotify (per stream): Ad: ~$0.0010 - $0.0050Subscription: ~$0.0075Premium: ~$0.010
Youtube (per view): $0.0001 - $0.01Pandora (per stream): $0.0011
Ownership vs Access
THE CLOUD STORAGE
Which is more important to you: • Access to 30 million tracks or Owning 3000?• Streaming or downloading? • Privacy or Sharing?
Subscription Vs. Cloud
Subscription Services:• Pandora• Spotify• Slacker• Deezer• Rhapsody• Muve• WiMP• SiriusXM• Google• Youtube• Beats
Cloud Services• iTunes• Amazon• Google
Pandora vs. Spotify
Pandora• ~1 million tracks• Play is limited by
DCMA rules (can’t play exactly what you want)
• Can’t make playlists• Not very social• No apps• US Only
Spotify• 30 million tracks• Play whatever you
want• Easily integrated with
your social media• Open Platform (lots of
apps)• Offline Version (with
Premium membership)• 23 countries
Which has more listeners??
Listeners vs. Subscribers
Source: http://www.digitalmusicnews.com/permalink/2013/05/26/state
24 mil “listeners
72.7 mil “listeners
Why?
iTunes Radio
iTunes Radio
• 20 million unique listeners in the first month!
• That’s almost 1/3 as many users as Pandora!
Why?
Which Would You Want?
Creatives
Corporate/Jobs
Consumers
$0.99 (really $0.70)
$0.001/stream
X
X
X
$0.99 (really $0.70)
$0.001/stream
X
X
X
X
What Is Your Career Path?
Creatives
Corporate/Jobs
Consumers
ROYALTIES SALARY
How Do You Get There?
OLD PARADIGMLABELS DICTATED TO CONSUMERS
“It’s really hard to design products by focus groups. A lot of times, people don’t know what they want until you show it to them.” (Steve Jobs)
How Do You Get There?
NEW PARADIGMCONSUMERS STEER THE SHIP
“Follow the money” (Mark Felt aka Deep Throat)
NIN Story
CwF + RtB = $
Connect With Fans (CwF) + Reason To Buy (RtB) = The Business Model ($$$$)
(Source: Michael Masnick, Editor TechDirt)
“Before anyone can pay a royalty, someone has to pay attention.”- Ron Sobel
Recommended Toolkit
Recommended Toolkit:MS Excel (2007 or newer) [1,048,576 rows vs. 65,356)
Dummies Guide to MS Excel Good Music Business Book
“Music Publishing – The Complete Guide” (Steve Winogradsky)“All You Need To Know About The Music Business” (Donald Passman)
File Transfer Program or ServiceYoutube/Facebook/Twitter Channel NameLarge Email InboxBillboard.biz (and print version)Music Blogs (e.g., Digital Music News, Hypebot, etc.)Paypal AccountConstant Contact or other Newsletter Program
A CLOSER LOOK
About Me http://about.me/stevencorn
Linked In https://www.linkedin.com/in/stevencorn
CMS http://www.cornmusicservices.com/
BFM Digital http://bfmdigital.com/
Steve's Blog http://bigfishmedia.typepad.com/thedigitallowdown/
Steve's Slideshare http://www.slideshare.net/scorn100
Twitter @digimusic4real
BFM Jazz http://www.bfmjazz.com
© 2014 Steven Corn – All Rights Reserved
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