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

42 revenue streams

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

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
4000
3552
Number of survey respondents

3500
3000

66%

reported 0% of income
from sound recordings

2500
2000
1500

1183

1000
500

22%
237

144

reported 1% - 10% of income

from sound recordings

53

73

20

27

16

44

31 to
40%

41 to
50%

51 to
60%

61 to
70%

71 to
80%

81 to
90%

91 to
99%

100%

0
0%

1 to 10%

11 to
20%

21 to
30%

Percent of music-related income derived from sound recordings in past 12 months.

N=5371

Revenue
derived
from
sound
recordings
Income from sound recordings,
in past 12 months,
primary genre
by primaryby
genre
All (N=5371)

6%

Rock (N=569)

14%

Hip hop (N=93)

12%

Country (N=262)

6%

Jazz (N=872)

4%
1%

Classical (N=1863)
0%

5%

10%

15%

Percent of music-related income in past 12 months

20%

Perceived changes in revenue from sound recordings

over prior five years
Changes in revenue from sound recordings over past five years
Increased

16%

0%

10%

Stayed the same

18%

20%

Decreased

22%

30%

40%

I don't know

3%

50%

Not applicable

41%

60%

70%

80%

90%

100%

Percent of survey respondents.

N = 4447
N=4447

6% more report a decrease

in revenue than an increase

41% say changes in revenue

from SR is not applicable"

The thing thats decreasedthis wont

surprise youis the income from
recording. By that I mean the royalties,
the advances, all of the income streams
that go along with the recordings. Its all
decreased significantly over the last 10
years.
Contemporary Chamber Ensemble

Have you ever earned any income from....

all long-path respondents
74%

Physicalsales
sales
Physical

Sales
atatshows
Sales
shows

79%

Digital
downloads
Digital
sales

62%

Interactive streaming
Interactive streaming services
services

35%

Digital performance
Digital performance royalties
royalties

13%

Synchs
Synchronizations
0%

17%
10%

20%

30%

40%

50%

60%

70%

80%

Percent of long-path respondents who are participating

90%

100%

Have you ever earned any income from....

full-time musicians
76%

Physicalsales
sales
Physical

Sales
atatshows
Sales
shows

79%

Digital
downloads
Digital
sales

66%

Interactive streaming
Interactive streaming services
services

37%

Digital performance
Digital performance royalties
royalties

16%

Synchs
Synchronizations
0%

19%
10%

20%

30%

40%

50%

60%

70%

80%

Percent of long-path respondents who are participating

90%

100%

Have you ever earned any income from....

primary genre: rock
Physicalsales
sales
Physical

74%

Sales
atatshows
Sales
shows

83%

Digital
downloads
Digital
sales

72%

Interactive streaming
Interactive streaming services
services

36%

Digital performance
Digital performance royalties
royalties

16%

Synchs
Synchronizations
0%

31%
10%

20%

30%

40%

50%

60%

70%

80%

Percent of long-path respondents who are participating

90%

100%

Digital download sales

iTunes is a specific technological

development thats been helpful to
revenue
Jazz manager

Digital download sales

Digital sales have boosted and thats one

thing instance where weve 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, its still small, its still not a lot of

revenue but every month it gets better
or every quarter, whenever we get our
statements, its 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
fiverecordings
years,over
bypast
category
Changes in
revenue
from sound
five years
Increased

Physical
sales (N=772)
Physical
sales

Stayed the same

Decreased

26%

Sales
at shows
(N=818)
Sales
at shows

I don't know

Decline to answer

20%

49%

33%

31%

Digital
sales (N=646)
Digital
sales

20%

50%

Digital performance
royalties

Synchs
(N=312)
Synchs
10%

20%

11%

30%

39%

0%

17%

28%

45%

Digital performance royalties (N=140)

40%

50%

even split

5%

41% more
report increase

Percent of long-path respondents

70%

80%

31% more
report increase

11%

34%

60%

39% more
report increase

11%

14%

24%

30%

2%

33%

58%

Interactive streaming
Interactive streaming services (N=362)
services

4%

4%

90%

23% more
report decrease

100%

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

Live
Performance
77.8%

Professional orchestra member

Salary:
orchestra
64.8%
Freelance: live
27.3%

Grants and
Awards
7.5%
Record Label
Advance
5.0%

Other
2.8%

PRO Royalties
0.8%

Commission
2.6%
Sideman
Record Sales
1.8%
1.7%

Jazz sideman

Radio
Royalties
0.3%

Indie rock composer/performer

Live Performance
15.0%

Salary
29.8%

Sideman:
Performance
32.4%

Live
Performance
30.5%

Administrator
14.9%
CD Sales on
the Road
0.4%
Grant
11.6%

Recording
0.9%
PRO Royalties
2.1%
Sideman:
Recording
4.3%

Sideman:
Performance +
Organizer
8.0%

Teaching
10.5%

CD Sales on
the Road
12.1%

TV
Royalties
0.4%
Producer
0.7%
Session Record Publishing
Musician Sales Advance
3.5%
1.5%
5.6%

PRO
Royalties
6.2%

Publishing
Royalties
9.4%

money.futureofmusic.org/case-studies/

Recording
Income Prize Money
0.8%
1.8%

Knowledge of
Freelance: Craft
studio 3.1%
1.9%

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