future of music coalition: the new power trio: brands bands and revenue - midem 2012 presentation

The New Power TrioBands, Brands and Revenue

Kristin Thomson • Future of Music Coalition

Sunday, January 29, 2012

Individual musiciansʼ earning capacity.


• in person interviews• financial case studies• widely distributed online survey

Data collected through:


US-based musicians, performers and composers completed the survey.

Over 5,000


40% spend more than 36 hours perweek

performing, composing, teaching or working on their craft.


42% earned ALLof their personal annual income from music.


ClassicalJazzRock/Alt-RockPop • Composer • Singer/songwriter

Folk • Indie • Americana

Primary genres for survey respondents:


Brand can include:Merchandise sales

Fan club income

Persona licensing

Ad revenue

YouTubeʼs partner program

Acting

Product endorsements

Corporate sponsorships

Grants

Fan funding


Merchandise and branding is only relevant to a small number of US-based musicians.

POINT 1


1. Musical compositions2. Sound recordings3. Performances4. Session work5. Merchandise6. Teaching7. Other

Apportioning music income


N = 5371

2%In aggregate, income from merchandise sales accounted for about 2% of respondentsʼ revenue.

Income from merchandise

Jazz: 0.6% Classical: 0.6% Country: 2.2% Hip Hop: 4.9% Rock: 6.6%

Range by genrefrom

0.6% to 6.6%


0% 25% 50% 75% 100%

72.71.5711.37.5

Decreased Stayed same Increased Donʼt know Not applicable

Changes in revenue from merchandiseover past five years

Percent of respondents N = 4072


0% 25% 50% 75% 100%

711.37.5

Changes in revenue from merchandiseover past five years

Percent of respondents N = 4072

Decreased Stayed same Increased Donʼt know Not applicable

73% of respondents: “not applicable”


Artists have many other brand-related opportunities, but widespread participation is difficult.

POINT 2


N = 5371

Income from “other” revenue sources accounted for about 7%of respondentsʼ revenue.

7%

Income from “other” revenue sources


Grants

Fan funding

Corporate sponsorships

Acting

Web ads

Endorsements

Persona licensing

Fan club

0% 2% 4% 6% 8% 10% 12%

Deriving income from brand

Percent of survey respondents who have received some income from these activities in past 12 months. More than one answer allowed. N = 5371


POINT 3

Artists are increasingly strategic about their brand.


DEDICATED MERCH TEAM

“We have a dedicated merch guy now and he makes a big difference...”" " " " " " " " " " " " " " " " – US rock band


LIMITED EDITION MERCHANDISE

“Coming to the shows, having one of those shirts that only 200 people have, they love feeling like theyʼre a part of something special.” – Ben Weinman, The Dillinger Escape Plan


LEVERAGING BRAND

“...I think corporate America understands the influence of rap music and is using it to help promote their products...”

– Jini Thornton, business manager for high profile hip hop artists


POINT 4

For jazz and classical artists,

brand engagement is evolving.


BRAND IN NONCOMMERCIAL WORLD

“[pursuing licensing or branding opportunities] would be a fun thing to do, but it takes away from our main purpose: to promote the artist with orchestras or with presenters.” – US classical manager


BRAND IN NONCOMMERCIAL WORLD

“Weʼre very aware that we exist in a niche. We need to bring people into the niche and deepen our relation-ship with them, rather than flinging ourselves all over the place.” – classical choral chamber group


POINT 5

Corporate sponsorship and fan funding fills in where labels may have dropped off.


CORPORATE SPONSORSHIP

“For us, corporate sponsorship of videos has been a total revelation...”

" " " " " " " " " " " " " " " " " – US rock band


FAN SUPPORT

“Artists have to feel no shame about asking their audiences and their fans for support and money....”

" " " " " " " " – US musician/performance artist


1.Not all musicians are able to leverage their brand.

2. For musicians and bands who can leverage brand, they benefit from being flexible, open-minded, strategic, and unafraid to involve their fans.

The Takeaways


By roleComposers and songwritersTouring musiciansSession and freelance players

By genreJazz players and composersClassical players and composers

By locationMusic cities

By experience or trainingEmerging artists versus old guardConservatory or music school graduatesLabel relationshipsOrganizational affiliations

Future ARS data releases


For more informationhttp://futureofmusic.org/ars


future of music coalition: the new power trio: brands bands and revenue - midem 2012 presentation

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