Since the beginning of time, our human nature drives us to find beauty. Finding this beauty can come about several different ways whether it come from the arts, physical, or spiritual beauty. Then man began to create music and in order to seek out this loveliness. Over the centuries the production of music has grown and advanced In various ways. By generating different several deferent products and jobs, our economy would dramatically change without the revenue of music.
The music industry encompasses many ways to generate revenue through different types f employment, various ways of selling music, and investing in the future market. Prior to the days before complicated legal policies and the Internet, musicians generated revenue through two mall ways. They had to sell records and perform shows to acquire an income through the industry. While artists still use those methods for monetary gain, new methods have emerged for maximizing income. Due to an Increase in copyrights and the requirement of official authorization, musicians can receive money through royalties, which are usage-based payments.
Most money an artist receives comes from mechanical royalties and performance royalties. An artist receives money when a label company produces copies of their work through mechanical royalties. When a radio station, television show, or any other company plays a musicians song they must pay the artist for performance royalties. Artists can also get payment through various other royalties. Synchronization license royalties occur when payment goes to the songwriter for synchronization and distribution of a song with a moving image such as a song in a movie, television shows, commercial or video game. Analog” public performance royalties require that for any live performance a fee must be paid for each song. Hen manufactures produce Items such as lyrics and sheet music, they must also pay the artist print royalties. Membership in a band comes with both restraints and perks. Starting a band requires practice and patience with the other members. Working around multiple people’s schedules to arrange a specific time to meet and rehearse can exhaust everyone. Although some labels may offer more money up front for contracts with bands, money still gets split.
When it comes to bands made up of three members, each member generally makes eighteen percent of the profits. The rest of the forty- ix percent goes to a personal manager, business manager. Lawyer, producer, and drummer. However this means that for every one thousand dollars in music sold, the musician only receives twenty-three dollars and forty cents after everyone else gets their cut (Jefferson). Money has driven and will always cause bands to break up and musicians to end Joint careers. Bands receive an advantage because they can benefit from one member of the band’s talent.
For example, you may have a mediocre drummer or bass guitarist, but one exceptional lead singer. The band’s chances of being discovered by a music scout increase. The mediocre members of the band then receive help for Improvement through the record label. Just Like anything In life, through hard work and effort the weaknesses of the band can turn Into their strong 1 OFF Apple’s tunes store revolutionized the way musicians make money and promote themselves. It all began in 2000 when Apple Inc. Purchased Sounding PM and later renamed it tunes.
However, this program only ripped music from compact disks and played MPH music files and consumers began to hunger for a virtual music market. Apple Incorporated fulfilled this desire in 2003 when they introduced the tunes store. Today it has developed into not only the leading retailer of music online, but also the largest anywhere. Now one can purchase not only music but movies, television shows, books, games, and applications. The tunes store set a record high by selling twenty-five billion songs as of February 6, 2013 (Monogram). It continues to grow and expand, keeping Apple Inc. Tock high and profitable. Thinking that an artist keeps all of the profits is a common misconception about the tunes store. Musicians who sell their records through the tunes store receive different amounts of money depending on what label they signed under. According to musician Giaconda Didgeridoo, Apple Inc. Will take thirty cents from a song that cost ninety-nine cents. With the remaining sixty-nine cents left, one half goes to the music publisher and the other half goes to the music label. These labels generally invest anywhere from three hundred thousand dollars to five hundred thousand dollars.
Therefore, the money goes directly to an artist after they have sold about half a million downloads because of other people who get paid off. The technology columnist Amity Augural explains a one downside to major online music markets. This negative aspect comes about when one learns that independent artists cannot sell their music in the tunes store. Most major online music retailers such as Anapest and Amazon also practice this policy. The reason behind it comes from the idea that unsigned artists are more likely to not be profitable or worthy of receiving a spot on their sites.
Independent artists need not to fear because companies such as Tincture give unsigned musicians hope for making it into the respected online music markets. Companies like Tincture have arranged deals with major musical retailers to put unsigned musicians on their websites. They charge a flat fee, usually ten dollars per single song and forty dollars per record, then they process and upload the music to whatever companies they have agreement with. This gives unsigned artists the ability to Join a larger market of consumers.
With the technological advantages, musicians can now generate profits through selling their music on streaming web sites. Most people do not understand how musicians make money from streaming websites such as Pandora and Spottily. Musicians make their money here also through performance royalties, but Just in a newer style. In simple terms, the cost of a stream depends two things, the use of the subscriber and the fixed amount of money that they pay. Each user who creates stream pays the flat rate in order to spread the amount of money into a pool of artist under contract for the streaming company.
Then these profits go to an individual rights holder or musician, but the amount of money varies also on the artist’s personal popularity amongst the users of these websites. This causes more popular artists to receive a slightly bigger portion of the set rate than lesser-known musicians (Faze). Independent artists may make only $0. 04 per play (Sydney). However, services like Spottily and Pandora open up their listener’s range of likeable artists since they Some musicians may take a special, less traveled route to making a living off their musical talent and fame.
Depending on the popularity of the artist, musicians commonly sell merchandise at shows. People will pay outrageous prices for memorabilia to commemorate their time that they saw a certain show. Some artists who put make their songs available for free to the public make money through selling advertisements. Some bands and musicians have made careers performing nightly n television shows such as Chelsea Lately and Jimmy Falcon’s late night show. Unfortunately, very few of these Jobs exist. Rolling Stone reports that an artist can make up to $1 ,500 on every 1,000,000 stream by using this method.
Mega stars can create lines of products that will sell to their fan base regardless of its actual use. These stars, such as Justine Bibber and Brittany Spears, created their own line of perfumes. One of most successful musical celebrity who did this is the pop star lassies Simpson who owns a line of clothing. Rolling Stone states that her brand makes $750,000,000 to $1 annually. For people who think that music alone can only make in this industry do not know the extent of possibilities for monetary gain.
The public possesses a misconception that every single artist makes millions of dollars off sales and that all of them live extravagant lifestyles. Data Journalist David Mishandles researched how much a performer must sell or stream in order to make the United States monthly minimum wage of $1 , 160. His facts shed light on the reality of the challenge that comes with a career in the music industry. In order to meet this goal 1, 161 retail Cad’s must sell at $9. 99 to meet this goal. 1,229 at $9. 99 must be unloaded through tunes in order for a musician to make minimum wage.
Although streaming services vary from each artist, the rough estimation through Spottily shows that an artist would have to accumulate 4,053,110 plays per month to earn minimum wage. Fans often misconceive musicians and super stars lifestyles. They make the misapprehension that because someone writes and sings about possessing money, cars, clothes, and other material items must actually live that way. Artists who sing about these things produce music that projects a false representation of their life.
As a saddening result, these artists over spend their none and accumulate mass debt. Also, the majority of artists do not know the extent and depth of legality issues behind their labels contracts. Aspiring musicians commonly leap into signing deals out of excitement and realize that they can no longer recover their labels funds. The glamour and glittering lights of the music industry can produce illusions and confusion of reality. Although artist can make a vast amount of money, other people contribute to the success of the artist that must collect compensation.
By taking a further look into the management career, one can observe that a manager can make or break an artists rarer. These people take charge in the business side of their client or client’s Job so that the musicians can explore their creativity and focus on music production. Managers book shows at venues and ensure that important people from the music industry will receive invitations to watch. They promote the music by sending out demo tapes to radio stations and producers, alerting media on new projects, and advertise the music in general.
Negotiating financial deals with label companies, make up the occupations of managers. Contracts ensure that managers will receive a certain amount of money of the artist’s income. The common percentage ranges from fifteen to twenty percent of an artists income. However, Popular artists and bands often pay their managers not only a percentage of their income but also a salary. The purpose of paying extra makes certain that the particular manager will not work with any other client in order to focus all energy into one artist or band.
Music promoters also contribute greatly to an artist’s profits. They differ from managers because they work with various people and not one specific group. Managers, venues, and musicians hire them to endorse and support an upcoming show. They must contact the musician’s management in order to orchestrate the dates for the performance to occur. From the venues and sound checks to hotel reservations and backstage accommodations, music promoters take responsibility for doing these things. Their payment come from two different methods, a fixed payment or split door deal.
With a fixed payment promoters pay the musician a certain amount of money for the show regardless of ticket sales. Then the promoter keeps the remaining amount of money generated from ticket sales. Split door deals take a percentage of the profit from the ticket sales and then give the remaining none to the artist. The fixed rate or the percentage from sales depends heavily on the deal made with the manager and the popularity of the artist. Record labels employ numerous people and create several Jobs. Ten departments make up label companies.
First the artists and repertoire, people who scout talent, assemble the alluring part of the business. The art department creates everything from CD cover art, displays, and advertisements. The business affairs department takes charge of general finance, book keeping, and payroll. A smaller department, the label liaison handles the affairs between distribution companies and decides on hen to release an album. The legal department controls all of the contracts the label has involvement with and any other legal issues that may occur.
How promotion and sales occur relies on the marketing department. Since artists want a bigger presence on the internet, the new media department puts them forward through music videos and online advertising. The promotion department makes sure that their musician’s music will play on the radio. The promotion department also helps other departments communicate about how to better sell records. By arranging for articles to come out, coordinating public appearances, and handling television ND radio reporting of an artist the publicity department gets the word out.
Lastly, the sales department works with music retailers to get them to sell a CD through their store. All of these departments employ people who play vital roles in the making of music. Producers make up another essential occupation in the music industry. They engineer the sound recordings and create a certain sound. Often time producers arrange parts of the record and contribute to writing it. Two types of producers help bands make music, in house record producers and independent record producers. A audio will employ an in house record producer whose payment will come from the fee of renting the studio.
Bands employ independent record producers so that they can achieve a certain sound and they receive payment separate from the studio ability to mix recordings. People refer to new producers who use computers and new technological advantages as “bedroom record producers ” because they work from home. Without producers musicians could not properly record their music and sell it n vast amounts. While the music industry provides millions of Jobs, our need to generate more occupations continues to grow as unemployment rates increase. By investing time, money, and dreams into this growing market we posses the ability to create more jobs.
History shows that when investing money any market comes with risks. The entertainment industry, however, proves itself as a safer way of accumulating wealth due to high demand. The music industry keeps on improving and the future looks promising. Since the beginning of time, people always possessed a desire for entertainment, and most importantly a desire to create and enjoy music. Therefore, music itself keeps no record of time because the yearning for it always exists. People Nil always demand new sounds and music to fulfill what they want.
In today’s society, we keep on furthering our technological advances and revolutionize our methods in the music industry for sales, discovery, and improvement. In the future, new technologies will further promote digital music usage. MPH players such as pods will continue to expand the amount of information they can retain. Compact disks will become extinct fossils of past melodies. Eventually, major record labels will discontinue producing actual albums and only vend their music through online markets and streaming sites (Landau). Cellular devices continue to expand their musical capabilities and provide convenience for consumers.
Daniel Eek, the co-founder of Spottily, presented a futuristic concept that takes music to another level. He believes that in about a decade form now everyone will be connected through computing devices, touch screens will require no touch, and every device will be in three dimensional view. Music factors into his prediction because Eek wants to create a technology that will allow listeners to connect with music on an uncharted level. Eek predicts that by using the three-dimensional technology, people will have he ability to see music waves and manipulate them to their personal liking.
He also suggests that music will not be played through traditional speakers or headphones but “musical light bulbs”. Currently inventors are developing more intelligent sound systems that will progress society towards amazing technology (Sloan). Another way that the investors can earn returns on the music industry comes from investing in musicians. Music will never stop being made. Thus, the music market will always exist. Record labels carefully devote their time in money with hopes that aspiring artists will gain fame and generate more revenue for them. Doing o requires careful measures.
Since signing a new musician can cost hundreds of thousands of dollars, labels must make sure their musical talent exists and that people will enjoy their music. The various people who make up a record label depended on all of their artist’s success in order to make money. Just like all Investments, it comes with risks since people’s actions prove themselves as unpredictable with their actions. Studios place importance for labels to invest in proper machinery and equipment in order to produce the best sound possible. Introit the right equipment, the quality of recording will not meet retail standards. D record label to accompany the musician. The many ways to make money in the music industry causes it to continue grow economically through Jobs and the increase in the market. Artists today can generate revenue in various different ways from less than ten years ago. New major music markets continue to expand and change the way society views music. Record labels create several Jobs that can help boost and stimulate our economy. The advancements of technology continue to revolutionize how we perceive music. Investing in musicians can bring profitable terms because the constant demand for music.