The ART of Independent Artist Revenue

The music industry has changed so much in the past decade, with the evolving role of major music labels and the ever-present social mediums available, independent artists have so many tools within their reach to get their music out to the masses and build relationships and community with their fan base.  For music artists, with networks like SoundCloud and ReverbNation at their disposal, artists can make their music available to the public for review, build a fan base and then handle their own distribution and promotion.  Sounds like a perfect road to success and revenue generation doesn’t it?  These are opportunities for independent artists to get great exposure and promote their art, but the question is, is it profitable?

Source: www.outsourcing-center.com

 Fortunately, some of these methods are outlined in an article at Hypebot.com, The 3 Most Profitable DIY Revenue Streams And Why Many Artists Succeed At Only One Of Them.  While these mediums have opened up opportunities for independent artists, the earnings remain fairly modest in comparison to the signed artists we often see in music videos and on television living a life that appears to be fueled by millions of dollars with lavish trips and cars.  In fact, the article states the average DIY artist is grossing no more than $50,000, through the distribution of their music, but the article points out that these sources are not the only methods.  So what are the other avenues that DIY artists are generating income?

The article talks about one of the more obvious that I’ve covered previously on this blog, live touring.  While it can be a difficult life, live touring is the lifeblood of many artists, even those that are signed to major labels.  For the independent artist, the increase in “house concerts” have created a similar environment and can yield a several thousand dollars per show depending on the city and how popular the artist is in that location.  These appearances along with selling merchandise can be pretty profitable. 

Another method that has not only been profitable for virtually unknown artists, but has been the source of discovery is YouTube.  There are a number of ways to make a living here.  First, artists can upload their own music directly, with little to no cost involved.  There are companies that can assist the artist in monetization of their content allowing them to yield up to the high five figures.  Also, according to the article, Make Money on YouTube, Film, TV and more with CD Baby Sync Licensing, services like CD Baby and Rumblefish are collaborating with YouTube to create additional income streams that would allow the artist to get paid every time an individual anywhere in the world uploads the video. 

With so many avenues available to DIY artists, the trick really is to determine how to make them successful and which one to focus on first.  Also, as the article points out, it is important to have a multi-focused approach in order to help build and maintain career momentum.  If you have a management or consultative team, these are options you can discuss and start creating a plan to help you move forward.  Do you have some experience with any of these mediums?  Have you experienced any degree of success?  If so, I would love to hear from you.  So these are my thoughts and I’d love to hear yours.  Until then do you and creatively mind your business.  

The ART of the Mega Comeback

You might recall about one year ago that MegaUpload was shut down, creating what might be our very first digital superhero.  Ironically, this underdog is back and possibly larger than ever with its update as MEGA as reported at Digital Music News who recently did a follow-up story on this historical event.  The site announced that MegaUpload Successor MEGA Is Now Officially Live and ready to takeover.

This re-launch will likely be very embarrassing for the FBI and the US Department of Justice and also groups like RIAA that rallied to shut the site down.  It is reported that the new site has the potential to outshine its predecessor and with the support of the public, it is very like to occur.  If that is not interesting enough, there was another component of Mega that was not publicly announced previously that could impact the music industry in a major way.

Source:  www.torrentfreak.com

Along with the development of MegaUpload, was a tool called Megabox, which is described as a music service that could create a dynamic shift the balance of the industry back into the favor of the artists.  According to TorrentFreak, in it’s article, Dotcom’s Megabox to Launch “A Few Months” After Mega, Megabox is scheduled to launch shortly after Mega and will operate using a “free music” model, that gives the public access, while compensating the artists through advertising.  The business logic here is that this approach will help prevent or at minimum reduce the incidences of piracy, while ensure that artists receive payment for their work.  Can you imagine what that will do to other streaming providers who do not currently utilize this model?  For those that are currently operating using an all-you-can use for a flat fee model, but very minimally to the artists, this could create quite a shakeup! 

The technology to support this is called Megakey and requires installation by the user who will receive the music at no cost.  If users opt to uninstall the app, they will be required to pay for the music.  While Megabox will receive a small portion of the revenue generated, it is claimed that the majority will go to the artist.  This potentially creates an environment where the artists will receive up to 90% of earnings and finally tap into the download market that has not previously operated in their favor.  The big question here is will the major labels that benefit richly from the current models allow something like this to happen. 

Given the backlash from the last action against Mega, is it likely that anyone will strike against the brand now?  Not only might this previous underdog come back, if what we hear about this new tool is true, this might represent a major comeback for this tool and the organization.  We will just have to wait and see how this plays out, but this could be an incredible opportunity for independent artists particularly who primarily distribute their music digitally.  Not sure about you, but I’m excited to see how this develop.

These are my thoughts and I would really love to hear yours.  Until then, creatively mind your business.