Being a musician these days may be tougher than it’s ever been. The evolution of how we consume our favorite tunes has taken some money out of musicians’ pockets and forced them to get creative with how they make some of it back.
Gone are the days when fans would rush to the stores to buy that new CD, or visit iTunes to download their album. Today, most of us simply stream our music and the rise of these services has made tour and merch revenue much more important to artists worldwide. Business Insider found that the highest paid act in 2017, U2, made $54 million in total revenue. About 94% of that came from touring and less than 4% came from streaming or album sales. Imagine what that means for a local band or an artist without the cache of U2.
Streaming Is Sucking Artists Dry
According to Billboard.com, by November 2019 album sales fell 19% compared to the same point in 2018. “And, for the full year of 2018, album sales dropped by 17.7% to 141 million — the lowest number of albums sold in a year since Nielsen Music began electronically tracking sales in 1991.” This is largely due to streaming.
NPR interviewed independent musician, Erin McKeown, and found that her accountant mentioned she was only making $0.004 per play on Spotify. At that rate, it would take 250 streams to earn $1 in royalties and 2,500 to earn a typical album download cost of $10. Keep in mind that is because McKeown is an independent artist, she gets 100% of her streaming royalties, but if she had a label, she’d be splitting even that small amount of earnings with them too.
The coronavirus has recently made things even more dire for musicians. With the pandemic effectively shutting down their #1 revenue stream, most acts have been forced to cancel or reschedule their tours. So how are musicians surviving these days?Continue reading “Dear Decorators, Musicians Need You and Here’s Why.”