Revenues.
THE NEW BUSINESS OF MUSIC
The successful collection of revenues for musical artists is an art deeply interwoven within the complex set of tasks and skills required to bring music to market. It is a coordination of many revenue streams, from publishing, royalties, merchandising, online streaming, licensing, digital sales, performance revenues, digital aggregators, endorsement and a myriad of creative cross-promotions.
-
Commissions
Typically a request from an ensemble, presenter, orchestra or other entity for a composer to create an original work for them.Publisher Advance
Bulk payment to songwriter/composer as part of a publishing deal. Paid to songwriter/composer by publishing company.Mechanical Royalties
Royalties generated through the licensed reproduction of recordings of your songs, either physical or digital. Paid to songwriter/composer by publisher, or digital aggregator like CD Baby or TuneCore.Public Performance (PRO) Royalties
Revenue generated when your songs are played on radio, TV, in clubs and restaurants. Paid to songwriter/composer/publisher by ASCAP/BMI/SESAC.Streaming Mechanical Royalties
Revenue generated when your songs are streamed on on-demand services (Rhapsody, Spotify, Radio). Paid to publisher by mechanical licensing agent. Publisher then pays songwriter/composer.Composing Original Works for Broadcast
Typically a commercial request to compose an original jingle, soundtrack, score, or other musical work for a film, TV or cable show, or an ad agency. Paid to songwriter/composer by agency.Sheet Music Sales
Revenue generated by the sale or licensed reproduction of songs/compositions as sheet music. Paid to songwriter/composer by publisher, or directly from online purchases or at performances.Lyric Display
Revenue generated by the licensed display of song lyrics by online lyric sites which pay publishers, which then pay songwriter/composer.Synch Licenses
Typically involves licensing an existing work for use in a movie, documentary, TV, video games, internet, or a commercial. Paid to songwriters/composers either via publisher or record label, or via a direct licensing deal with the licensee (movie studio, ad agency, etc) if the artist is self-published.Ringtones Revenue
Generated from licensing songs/compositions for use as ringtone. Paid to songwriter/composer though the artist’s publisher.Songwriter Awards Programs
Awarded by ASCAP and BMI Foundation to writer members whose performances are primarily in venues outside of broadcast media. -
Retail Sales
Revenue generated from selling physical music in retail stores or via mail-order. Paid to artist/performer by services like CD Baby or Bandcamp.Digital Sales
Revenue generated from selling music digitally/online. Paid to artist/performer by digital aggregators like CD Baby or TuneCore, or directly from fans via services like Bandcamp.Sales at Shows
Revenue generated from selling recordings of music at shows/live performances. Paid to artist/performer directly by fans.Interactive Service Payments
Revenue generated when music is streamed on on-demand services (Rhapsody, Spotify, Radio). Paid to performer by digital aggregators like CD Baby or TuneCore.Digital Performance Royalties
Revenue generated when your sound recordings are played on the internet, radio, Sirius XM or Pandora. These are paid to performers by SoundExchange.Master Use Synch Licenses
Typically involves licensing an existing sound recording for use in a movie, documentary, TV, video games, internet, or a commercial. Paid to artist and/or recording artist via a direct licensing deal with the movie studio, ad agency, etc.AARC Royalties
Collected for digital recording of the artist’ songs, foreign private copying levies and foreign record rental royalties, distributed by AARC.Neighboring Rights Royalties
Collected for the artist for the foreign performance of recordings.Film Musicians Secondary Markets Fund
Paid to performers on recordings used in film, TV and other secondary uses by the Film Musicians’ Secondary Markets Fund.Sound Recording Special Payments Fund
Paid to performers for the sales of music recorded under AFM collective bargaining agreement by the Sound Recording Special Payments Fund.SAG-AFTRA Contingent Scale Payments
Paid to artists when a recording hits certain sales plateaus. -
Shows/Performance Fees
Revenue generated from playing in a live setting. Paid by concert promoter, presenter or venue to performer.Session Musician/Sideman Fees for Studio Work
Payments to studio musicians/freelancers/sideman for work in recording studio. Paid by producer or artist, depending on situation.Session Musician/Sideman Fees for Live Work
Payments to studio musicians/freelancers/sideman for work in a live setting/on tour. Paid by producer or artist, depending on situation.Non-Featured Artist Payments
Payments from the AFM/SAG-AFTRA Intellectual Property Rights Distribution Fund, which distributes recording and performance royalties to non-featured artist. -
Merchandise Sales
Revenue generated from selling branded merchandise (t-shirts, hoodies, posters, etc.). Paid to artist/performer by fans.Fan Club
Money directly from fans who are subscribing to your fan club.YouTube Partner Program
Shared advertising revenue. Paid to partners by YouTube.Ad Revenue
Miscellaneous income generated by your website properties (click-thrus, commissions on Amazon sales, etc.).Personal Licensing
Payments from a brand that is licensing your name or likeness (video games, comic books, etc.).Product Endorsements
Payments or free goods from a brand for you endorsing or using their product.Acting
Payments for appearances in TV, commercials or movies.Fan Funding
Money directly from fans for support, or pre-sell tickets for an upcoming recording project or tour (Kickstarter, Pledge Music, IndieGogo).Sponsorship
Corporate support for a tour, or for your band/ensemble.