Page 1 of 2 1 2 LastLast
Results 1 to 10 of 13

Thread: Streaming Industry and Money

  1. #1
    Join Date
    Feb 2016
    Posts
    1
    Thanks
    0
    Thanked 0 Times in 0 Posts
    Rep Power
    0

    Streaming Industry and Money

    Sign in to disable this ad
    I've written this article to post on producer/engineer forums. I'm assuming
    there are plenty of people like myself, independent musicians who produce their
    own music and hope to make money doing so. The point of this is that there has
    to be a change in the music industry, or we never will.


    First I want to say that musicans aren't really in competition with one another
    for listeners. Myself for instance, I'm a fan of and have bought music from
    probably upper hundreds or more than a thousand musicians. I love Motorhead
    and I love Fetty Wap, they're not mutually exclusive. So it's not other
    musicians and producers who are a barrier to you making money, not at all.


    Secondly the idea that a musician shouldn't be compensated for their work, is
    wrong. Music is great. It's addictive, like a drug. It helps people
    emotionally, which is invaluable. It's the freaking soundtrack of life, without
    it, movies would be boring, dancing would be dumb, and the news wouldn't be as
    terrifying. Just think about it.


    Why is it so hard to sell music. It's not, in this day and age it is very easy
    to make money from music. The problem is other people are using your music to
    make money, you're not getting paid because you've basically paid them to take
    it for free.


    If you're a recording musician, not affiliated with a label, you have a few
    options to sell music in the market or the internet, excluding traditional set
    up shop and sell shit from a table. Those options are pay to distribute, like
    cd baby, or tunecore etc. Those companies take your money to sell or give away
    your music, on large platforms like spotify, itunes and a host of other sites.


    The platforms, not only sell your music but also sell ads. The reason that you can
    make money from your music online, is because your music is considered "content",
    so is this forum. Let's take this forum as an example, it's free to come here
    and write down whatever you're thinking, that might be bullshit, but it might be
    extremely valuable information. If you look to the right or left there are targeted
    ads, targeted to people like you who make music. The company who sells
    whatever product is in this ad, pays this site each time you click on the ad or view
    the page, depending. So each time you do, the site makes 25 cents est.
    If you've ever started a thread in a forum you've created a whole page of content,
    that in turn makes them money 24 hours a day. If you're thinking you should
    make a website and create content in order to place ads and make money,
    you will have gone the way of many other musicians, good luck.


    Music is even better content. So imagine you've created music, you've mastered
    your instruments, you've read all the manuals and bought thousands of dollars
    worth of equipment and learned to use it and now you're album is done and
    you're going to try to sell it. You need exposure. If you can't tour for some
    reason, like you have a job, and need to eat or some lousy excuse like that
    (just kidding), your avenue for exposure and profit is the internet. The
    problem with music is that the music is the ad for the music. So you have to
    let people listen to it in order for them to decide if they want to buy it. So
    if it were just that simple it would be great and this is why touring is so
    effective if you want to do that.

    So exposure services like spotify and pandora, in one sense are great because
    musicians and listeners are united in a blissful uncomplicated relationship.
    On the other hand, those companies eliminate any reason to buy music, ever.
    So right now I'm looking at spotify, and it is wonderful. I never need to go
    anywhere else to listen to music, ever. If someone's not on spotify I will
    never know, because I am so entertained by this.


    If I listen to the artist Travi$ Scott for instance on Spotify, and I love him
    so much I listen to him 10 times a day, he earns .022 cents a day. If I'd
    listened to him on pandora or iheart radio accidentally at that same rate he'd
    make .017 cents. This is because on sites that allow you to choose which songs
    you listened to the company has to pay .0022 cents per listen, and for sites
    that play like the radio they pay .0017 cents per listen. The copyright royalty
    board or CPB sets royalty rates, these are the minimum rates for webcasting
    music, and this is stuck for the next four years.


    So for every dollar that's made by an artist on Pandora, iHeart radio, Jango,
    or Slacker their song has been played by me 588.23 times, if the song was three
    minutes. For Spotify, a dollar is made by getting played 454.54 times. Some of
    these rates are different I know, for musicians who have the clout I guess to
    get paid more, or a lawyer.


    There are sites that sell songs, and those sites pay pretty reasonably,
    sometimes, I think itunes sells at .67 cents a song or that's what you get
    after the distributor takes their cut. That's pretty reasonable, because you're
    selling to one person who will listen as many times as they want and that's
    great. But why would I ever buy music at all if my radio is my computer and my
    cell phone is my portable and car radio, and it's all free? I won't.
    After Taylor Swift's exit from Spotify their listenership increased by 2.5
    million people.


    Let's look at from the other side. Advertisers are thrilled with pandora and
    Spotify because they provide rich engaging content at an affordable price. And
    new streaming services are arising, Amazon etc. Pandora typically shows seven
    display ads per listener hour and runs 2.5 audio ads (of 15- or 30 seconds) per
    hour. Users might also see a video ad. Visual ads, on a CPM (cost per thousand
    impressions)basis, sell for $5-$7; audio ads, $8-$12; and video ads, $15-$25.
    Spotify I couldn't find the exact math, they charge about 10-30 dollars per
    thousand impressions and take in about 150,000 dollars an hour in ad revenue
    total.


    So to be fair, let's look at a typical hour on pandora as $.08 per listener,
    pretty generous. (Thats a median amount for each ad area divided by a thousand
    (CPM) added together) That means that for every dollar you make as a musician
    Pandora makes 47.05 dollars.


    What is Pandora really? Its a website, that took a lot of work by programmers
    and marketers, it's a rainbow really, that occupies 5 floors of a skyscraper.
    A beautiful idea, about liberating music and a free wonderful listening
    experience for consumers combined with low cost advertising. I mean it does not
    get any better than that. And Spotify, those Sweeds are fing geniuses, they're
    even ripping off the advertisers, but that's for another article.


    The fact is the product that they are selling to consumers is your music. Your
    music makes up the backbone of an entire multibillion dollar streaming industry
    that you humbly pay someone to allow you to be part of.


    What I'm getting at here is that musicians have a low self valuation. Much
    lower than they should. Not that we should become dicks and make popular music
    any meaner than it already is, I'm not advocating that. But the idea that some
    of these services are offering us a handout, or 'giving' musicians something is
    not true. What's actually happening is that musicians are giving them
    something, and they, are selling it again for billions of dollars.


    The only way to capture the attention of the services outside of yelling about
    it is if their catalog was diminished significantly enough and people just
    began to go elsewhere, because they would. If enough musicians pulled their
    catalog's spotify and pandora wouldn't have anything to sell, and they would
    have to consider their payment practices or their services would go away. On
    top of that pirating is actually getting harder and harder because the internet
    is getting more and more regulated, so if the industry reverted to the sale of
    mp3s or wavs, this time that might work, not that it should revert, I don't
    know.


    Anyways, that's all I have to say about that, best of luck

  2. #2
    Join Date
    Jan 2004
    Location
    Chicago area, probably looking for more coffee.
    Age
    48
    Posts
    8,423
    Thanks
    29
    Thanked 77 Times in 58 Posts
    Rep Power
    15684625
    Multi-posting drive-by's....

  3. #3
    Join Date
    Jul 2006
    Location
    the eye of satan's butthole
    Posts
    34,141
    Thanks
    0
    Thanked 428 Times in 380 Posts
    Rep Power
    21474108
    Doesn't everyone already know this?
    New Gregor The Terror album! Download - El Bastardo Azul Or Buy the CD!
    New and old stuff - Soundcloud & Reverbnation

  4. #4
    Join Date
    Jul 2009
    Location
    Trending
    Posts
    14,718
    Thanks
    57
    Thanked 274 Times in 245 Posts
    Rep Power
    21474857
    Yeah...it's old news...but I guess he just had to do a drive-by post.

  5. #5
    Join Date
    Jan 2006
    Location
    Fremantle, Australia
    Age
    58
    Posts
    4,619
    Thanks
    0
    Thanked 81 Times in 72 Posts
    Rep Power
    11145420
    I was lost after reading "I've written this article"

    Alan

  6. #6
    Join Date
    Apr 2016
    Location
    Kingston, Jamaica
    Posts
    5
    Thanks
    0
    Thanked 0 Times in 0 Posts
    Rep Power
    0
    Artistes just need to find creative ways to make their own money as entrepreneurs. You can't depend on streaming or even royalty, bcz you will certainly be robbed no matter how good you are. Build your brand or forge alliances with companies that will help you to do that.
    Music, the universal language!
    http://www.singerb.com/@@germaineu

  7. #7
    Join Date
    Oct 2005
    Location
    Undisclosed
    Age
    30
    Posts
    4,202
    Thanks
    105
    Thanked 90 Times in 90 Posts
    Rep Power
    17283323
    If he's so concerned with making money for content uploaded to the internet, why did he post this article for free on a site that won't share its ad revenue with him?

  8. #8
    Join Date
    Jul 2006
    Location
    the eye of satan's butthole
    Posts
    34,141
    Thanks
    0
    Thanked 428 Times in 380 Posts
    Rep Power
    21474108
    It's funny how many internet nobodies have all the ideas and answers yet achieve nothing themselves.
    New Gregor The Terror album! Download - El Bastardo Azul Or Buy the CD!
    New and old stuff - Soundcloud & Reverbnation

  9. #9
    Join Date
    Jul 2009
    Location
    Auburn NY
    Posts
    2,505
    Thanks
    0
    Thanked 21 Times in 19 Posts
    Rep Power
    6593620
    Lol

    td/dr
    My home studio ---> www.nerolstudio.com

  10. #10
    Join Date
    Oct 2005
    Location
    Undisclosed
    Age
    30
    Posts
    4,202
    Thanks
    105
    Thanked 90 Times in 90 Posts
    Rep Power
    17283323

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Similar Threads

  1. Streaming ...
    By Jeff Rambo in forum Digital Recording & Computers
    Replies: 0
    Last Post: 11-08-2000, 03:23

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
Special 93% Offer

Got beats? Samples? Mixing and mastering services? Get a head start with this 93% OFF special offer!