Streams Through Which Music Industry Earn Income

The music industry is one of the fastest growing business in the world today. Many artists and song producers have given the industry an entrepreneurial approach where they have committed themselves fully for the industry. In recent years, the sector has been embraced by so many participants because it earns them good returns (Wlömert and Papies 2016). Entrepreneurial thinking in the industry has brought a significant factor that contributes to these good returns. In-depth analyses, the discussion below explains different realistic and useful streams of earning income for the artists and song producers through their compositions, recordings, and performances. It also discusses the global changes that have been realized in the music industry over the past twenty years.

Changes in the Music Industry

Over the past 20 years, the music sector has experienced drastic changes due to transformations that have been made for creating and distributing music. Advancement in technology has also contributed to differences in how music is recorded, streamed and stored. (Hesmondhalgh and Meier, 2018, pg 1560). We have digital studios for recording music, online music stores, on-demand streaming services and stations for webcasting. These technological changes have reduced the cost for creating, producing and distributing music (Whelan, 2017).

When comparing the past and the current music industries, many people are in a position to identify the positive improvements that have occurred. These structural changes have given musicians quick access to the marketplace, therefore, increasing their earnings (Naveed, Watanabe, & Neittaanmäki, 2017. pg15). These changes have also enabled the participants of the sector to have a global network which makes them international celebrities. Most of the world known personalities are the musicians who have systems all over the world unlike what the past musicians experienced. Eventually, technology has helped in increasing the revenue generated from the music industry.

Streams through which music industry earn income

Royalties

One of the ways that artists earn income is through royalties. For example, when a person listens to the download songs of a musician, the musician generates money through his/her streaming and downloading (Sinclair, & Green, 2016). Artists earn a percentage of all his or her downloaded songs on the internet. They also make specific rates of their streamed songs (Wlömert and Papies, 2016, pg320). The process is called royalty licensing where the artists get their share of the profit realized from his/her songs.

To ensure that you earn that money through royalty licensing, they are required to register with either an independent distributor or with Performance Rights Organization (PRO) and their work is to ensure the musician is paid whenever their songs are streamed out of their awareness. Royalties can either be mechanical or performances royalties. Automatic fees are earned when songs are sold in the form of CDs or cassettes while performance royalties are received when the songs are played in radios, TVs or clubs.

License tracks

Another stream for earning income is through license tracks. Here the artists license their songs whenever they are used for visual contents like promotions, TV videos and in other film forms of music. Musicians who work best in such music licensing make close to 35000 dollars per year (Arditi, 2017). It is one of the ways that generate a lot of revenue to song producers who are very active in ensuring their songs are used for visual purposes. In such cases, the artists sell their songs to the music libraries to be used in these purposes. All the songs to be used for these visual cases are stored in stock libraries like Pond 5, Music bond and Artist.

Sample packs

Most of the sample companies go for the most talented artists who can make good samples for music production that is played electronically. Producers first identify the best quality samples to develop sounds for their music. Producers label their sample pack before sending it to the sample companies (Wlömert and Papies, 2016, pg320). They also ensure their sounds are at an equal level with the required level by the companies. Artists also create folders and sub-folders for the type of elements they have used in their songs.

When musicians have a sample pack for their songs, they look for a sample company where they can sell their packages. The price of the boxes goes proportionately with the size of the pack. Examples of such companies include Bantana Audio and Loopmasters. Most artists give their first pack for free to create a good relationship with the company. It is one of the best ways of earning 100% revenue in the music business.

Beats selling

Most of the musicians who make hip hop tracks have an excellent opportunity of selling their beats to the ones who rap. It is one of the ways that music business generates a lot of income in the world. Most of the Artists require backing hip hop tracks in their songs. Musicians who produce quality music are also useful in coming up with nice beats which they can sell and earn them some income (Robinson, Dale, & Fenton, 2019, pg95). Such rhythms help musicians in creating good influence and relationship with other music industry genres.

The simplest way these musicians do is establishing websites that do beat selling to sell them too. These websites offer commission and also help in making their beats to trend for market purposes. Example of the most popular sites is Beat stars and Airbit. Some of the musicians create their websites where they sell their beats and eventually end up generating a lot of revenues.

Merchandising

Merchandising is also one of the essential streams that earn a lot of income for the music producers in the music industry. It is all about personal branding and selling other things besides music. Artists build their profile by creating their images and ensuring the creation of other products that surround them and their music (Robinson and Fenton, 2019, pg90). Artists think beyond music, and they come up with merchandise shops where they sell different products which are in line with their music. These brands create a good profile for their images and their names.

To earn a lot of revenue, most artists create websites where they sell their brands. They tend to sell different products in line with music like t-shirts, hats, and jackets. They also sell at low prices so that the customers may afford to buy them.

Live plays

Live performances by the artists and musicians tend to earn a lot of income for them. Such concerts are held in different venues where the artists are invited and get paid for their performance (Weijters and Goedertier, 2016, pg607). To start with, the beginners start in attending local clubs and sites where they tend to build their name. They also do it in local venues to gain experience as they anticipate to perform in big ceremonies and big clubs.

To start somewhere, beginners even start playing for free in these local platforms where they build their brand. Eventually, they get invites from big rigs where they are highly paid to perform. There are other ways in which artists earn income for their music like doing mixes and producing music. Those artists that have good voices which are at par with their role models, they tend to compose songs for other artists, and they end up earning a lot of money (Brown, & Knox, 2017).

Conclusion

It is evident that there are many ways of generating income in the music industry. Some of these streams have been contributed by the structural changes that have occurred in the music industry over the past 20 years. Advancement of technology has brought a significant factor in the music business where almost all the artists have websites where they sell their brand. Musicians are in a position to earn revenue from all the streams, or they can even master in some of them as they wait to start others (Hawkins and Niblock, 2016). These streams include selling beats, merchandising, sample packs, etc. There also different sectors in the music industry and each one of them has own function. All these sectors work hand in hand to ensure quality music is produced.