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 question

What percentage of musicians’ income comes from each possible revenue source? 

money.futureofmusic.org/research-questions/

42 revenue streams

Mechanical royalties

Streaming mechanicals

Mechanicals for cloud storage,

lockers

Commissions

Composing original works for

broadcast

Sheet music

Lyric display

Label advances

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

Salaried work

Session work in studio

Sesson work live

Merchandise

Persona licensing

Fan funding

YouTube/video partnership program

Sponsorships

Grants

Teaching

Master classes

money.futureofmusic.org/40-revenue-streams/

Composition income Sound recording income

Mechanical royaltiesPublic performance royalties

Synch licensesJingle writing/composing for

hire/commissions

Prior to 1998

Physical retail salesPhysical mailorder

Selling music at showsMaster use synchs

Composition income Sound recording income

Mechanical royaltiesPublic performance royalties

Synch licensesJingle 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 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/

• 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 income

Mechanical royaltiesPublic performance royalties

Synch licensesJingle 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 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/

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

66% reported 0% of income from sound recordings

Nu

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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

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

– Nashville Songwriter interviewee

“Have you ever earned any income from....”

Physical sales

Sales at shows

Digital sales

Synchs

Interactive streamingservices

Digital performanceroyalties

all long-path respondents

“Have you ever earned any income from....”full-time musicians

Physical sales

Sales at shows

Digital sales

Synchs

Interactive streamingservices

Digital performanceroyalties

“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

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/

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