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This is the Music Industry

From recording to live shows the industry today is very different from 30 years ago. It has become a global industry and focuses on the live productions. Musicians have to change there way of going about making it a career. Personally as an Audio Engineer this is an amazing thing.

Filling out the Gaps

Most artists have to heavily diversify their income. The old business model just had shows and record sales being the main sources of income.

In The US

Ways Make You or Your Band More Money

Stephen Marcone's

Today's Changing Industry

Understanding where an Artist Gets Income from a Show.

Earn Money Through the Business

Establish your music

Make You/Your Band a Business

  • Make sure you know what type of music you or your band makes
  • Get your members on board
  • Take in checks and make payables to the band instead of to a person.
  • Establish contracts of employment for clients wanting to hire your group
  • Discuss with band mates what payout after received check looks like.
  • Make money more efficiently and safely.
  • Figure out what fits better with you: Proprietorship, Corporation, Partnership, or Limited Liability Company
  • Setup tax Documents: DBA, IRS SS-4, Employers Tax ID #

Canada is trying to help its artists make the most of their diversified income. With SOCAN. Michael Raine is pushing artists to collect performance royalties because as he says "Most venues are willing to pay and support the arts". (SOCAN IS BEGGING YOU: Please Collect Your Live Performance Royalties)

1. Musicians get paid by ticketed sales

Musicians in some venues rely on ticket sales from the venue. Sometimes in smaller clubs or bars musicians share a percentage of the drink sales, profits, or revenue of the club or venue. Musicians on Arena Tours primarily rely on ticket sales and merchandise sales to pay for the bills.

2. Concerts Promote Revenue For Local Business'

A Venue in Maine has been widely successful. Todd Gabe and Nicolas Lisac note in the article "A Note on the Effects of Popular Music Concerts on Hospitality Sales", that the concerts that come to the venue draw major tourist revenue and boost sales to local shops. It helps bolster the local economy when a show comes through the venue. This is just one of hundreds of similar stories for venues across the country on how Live Music Is Good.

3. Sometimes Bands/Artists don't see the exchange of the money.

An Idea is maybe a standardization of how bands are paid? Maybe some kind of on tour policy? Also promote venue growth by visiting venues to help grow a cities investment in themselves with music!

Now countries, states, and provinces are trying to promote live music because it grows the areas and earns money for the governments. Michael Raine talks heavily about this in the article "PUTTING MUSIC CITIES ON THE MAP What Are The Benefits Of A Music City Strategy? Pt. 2." He outlines higher tax revenue, more tourist revenue, and higher morale for citizens in the areas. It is definitely in governments interest across the world to help lay a landscape for good musical growth in their governed areas.

A lot of times bands/artists have labels/promoters that pay them at the end of the tour or on some kind of stretched out basis.

When we have concerts like this:

Side Effects

The nature of change, especially in an industry, brings side effects.

Musicians Get More "Gigs"

“Oregon Musicians See Increase in New Contract.” is an article published by the International Musician series that shows this side effect. "The musicians of the Oregon Symphony are proud of their contributions to the organization, both on stage and off. It is through our collaborative efforts with the association that we have been able to grow the organization, improve outreach to the community, and provide a more progressive contract for the musicians,". The OS are receiving a 16.5% higher raise in a new 4 year contract till 2022. This is due to their "rapid increase in quantity of performance opportunities.

This just is describing that more shows are popping up and a slight trend towards more work for musicians across the board. There are new areas where musicians can perform and more options for music to be heard.

What is Changing?

Music Retail Industry Sees Increased Sales

Retail giants like Guitar Center, Sweetwater, and many others see major increases in product sold.

In "Where the Business Is Done" by the Music Trades organization shows that Guitar Center had revenue of 2.2 billion dollars in 2013 and has had increase since then in revenue.

For Me This Means More Fun Shows!

More Musicians

This goes to show

More instruments made

More Musicians Making Money

More Shows Performed

And This

More Products Sold

More Music Created

The main change of the industry as stated in "How Tastes And Technology Are Transforming The Industry." article of research done by Music Trades Association is the fact that almost anyone anywhere can record on their own computers anytime instead of expensive studios.

VS.

  • Then why are so many musicians struggling?
  • Why is there not a clear path to perceived success?
  • What are the things musicians have to deal with to make income?

The Old Way of Touring

The old way was tour to promote an album so fans/listeners would see an artist to hear the new music they would release later.

Now it is a model of release music to go on tour and make money in the live music aspect.

What does that mean?

Rolling Stones 1960s

Foo Fighters 2017-2018

The Effects of The Changes

Welcome in the Arena Tour

Live Concerts Change

More Music Is Released

There are now enormous tours that require massive production to get people to show up. Authors Christina Ballico and Dave Carter explain that in Australian cities the Arena acts bring the crowds and the local bands/venues keep the concert goers in the city and interested in the article "A State of Constant Prodding: Live Music, Precarity and Regulation".

In the Article "Negotiating Liveness: Technology, Economics, and the Artwork in LSO Live" by Annay Aguilar, the London Symphony Orchestra (LSO) had to change their model of concert because seeing musicians play on a stage wasn't drawing the crowds it used to. Now they introduce artwork, videos, and dancing into their shows and create different themes because of it.

  • More Music is Released
  • More Artists Exist
  • More need for shows to promote music

Muse Arena Show

Record Sales Change

Along with the Live show changing, recordings change. Not just that people can record anywhere and anytime but the idea of a platinum like BTO's (Bachman-Turner Overdrive) song "Taking Care of Business" hitting platinum meaning 100,000 copies of the record sold is not as popular. (Cohen, Grover, "Takin’ Care of Business: Music Business Reference") People are into more singles and streams/listens vs sells. Helped facilitate arena show tours to start. Also music may not be written for music sake but for a good performance.

Studio Industry Drastically Changes

The studio industry moves to a project studio basis. Instead of "85% of the market is owned by four major companies" it is now studios are built based off the music they are intended to record. This also increases the amount of music put out for people to listen to.

Beartooth in Home Studio

Band/Artist Lifetimes Change

Jo Haynes and Lee Marshall, authors of "Reluctant Entrepreneurs: Musicians and Entrepreneurship in the ‘New’ Music Industry." wrote in the article that musicians today have "short term or portfolio careers". They mention that in the "new" music industry artists have to become the entrepreneurs to figure out how they make money to make it a career rather than the labels doing it which was what the previous practice was.

More Independent Musicians

Works Sited 3

Works Sited 2

Thomas Cummins-Russel author of the article "Networks and Place in Montreal's Independent Music Industry." talked about how collectives and areas dense with musicians grew faster and more successful than musicians not in the area that were attached to a label. This is even seen in America with companies like Landr doing mastering and CDbaby putting music up on outlets like Spotify, Itunes, Google Play Music, etc.

Works Sited

What does this mean for the music industry across the world.

Top Artists Receive More Income

An article was written by Mark Coleman and Herbi Greene about the famous rock group "The Grateul Dead". More specifically it was partly an interview of Jerry Garcia the main guitarist. Jerry Garcia said "When I recorded Garcia, I found for a while I was rich, so I started giving the money away. And I found after a while that it cost me $1,500 to give away $1,000. So we're getting an institution registered to promote research in the arts, sciences and education so I can give away my money easier. So far it hasn't done anything." Which he stated in 1972. So the "New" Industry had taken place.

Reasons for going to shows changed

Author Aaron Thysanski in the article "Understanding What Really Motivates Attendance: A Music Festival Segmentation Study." did a study on why people go to shows. He mentioned that it is no longer about the music, it is now about the production. It can just sound good but if it is not visually appealing people stop showing up anymore. That is why arena shows are starting to gain so much traction.

Raine, Michael. “PUTTING MUSIC CITIES ON THE MAP What Are The Benefits Of A Music City Strategy? Pt. 2.” Canadian Musician, vol. 38, no. 3, May 2016, pp. 10–11. Academic Search Complete, EBSCOhost, ezproxy.elon.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=a9h&AN=115802766&site=ehost-live. Accessed 19 June 2018.

Raine, Michael. “SOCAN IS BEGGING YOU: Please Collect Your Live Performance Royalties.” Canadian Musician, vol. 39, no. 3, May 2017, pp. 10–11. Academic Search Complete, EBSCOhost, ezproxy.elon.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=a9h&AN=123350955&site=ehost-live. Accessed 19 June 2018.

Rayna, Thierry, and Ludmila Striukova. “Monometapoly or the Economics of the Music Industry.” Prometheus, vol. 27, no. 3, Sept. 2009, pp. 211–222. Academic Search Complete, EBSCOhost, doi:10.1080/08109020903127778. Accessed 19 June 2018.

Tkaczynski, Aaron, and Sharyn Rundle-Thiele. “Understanding What Really Motivates Attendance: A Music Festival Segmentation Study.” Journal of Travel & Tourism Marketing, vol. 30, no. 6, Aug. 2013, pp. 610–623. Academic Search Complete, EBSCOhost, doi:10.1080/10548408.2013.810998. Accessed 19 June 2018.

“Where the Business Is Done.” Music Trades, vol. 162, no. 4, May 2014, pp. 60–74. Academic Search Complete, EBSCOhost, ezproxy.elon.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=a9h&AN=95849642&site=ehost-live. Accessed 19 June 2018.

Haynes, Jo, and Lee Marshall. “Reluctant Entrepreneurs: Musicians and Entrepreneurship in the ‘New’ Music Industry.” British Journal of Sociology, vol. 69, no. 2, June 2018, pp. 459–482. Academic Search Complete, EBSCOhost, doi:10.1111/1468-4446.12286. Accessed 19 June 2018.

“How Tastes And Technology Are Transforming The Industry.” Music Trades, vol. 161, no. 3, Apr. 2013, pp. 50–68. Academic Search Complete, EBSCOhost, ezproxy.elon.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=a9h&AN=86444246&site=ehost-live. Accessed 19 June 2018.

Majeski, Brian T. “What The Sales Data Doesn't Show.” Music Trades, vol. 167, no. 3, Apr. 2018, pp. 22–22. Academic Search Complete, ezproxy.elon.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=a9h&AN=128846162&site=ehost-live. Accessed 19 June 2018.

“Making Your Band a Business.” International Musician, vol. 116, no. 6, June 2018, pp. 16–17. Academic Search Complete, EBSCOhost, ezproxy.elon.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=a9h&AN=130100022&site=ehost-live. Accessed 19 June 2018.

Aguilar, Annay. “Negotiating Liveness: Technology, Economics, and the Artwork in LSO Live.” Music and Letters, Vol. 95, no.2, May 2014, pp. 251–272. Academic Search Complete. pp. 251-272. EBSCOhost, ezproxy.elon.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=a9h&AN=97037910&site=ehost-live.

“Music Markets Are Still Local Affairs.” Music Trades, vol. 162, no. 11, Dec. 2014, pp. 60–74. Academic Search Complete, EBSCOhost, ezproxy.elon.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=a9h&AN=99856530&site=ehost-live. Accessed 19 June 2018.

“Oregon Musicians See Increase in New Contract.” International Musician, vol. 116, no. 6, June 2018, pp. 11–11. Academic Search Complete, EBSCOhost, ezproxy.elon.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=a9h&AN=130100016&site=ehost-live. Accessed 19 June 2018.

Aguilar, Annay. “Negotiating Liveness: Technology, Economics, and the Artwork in LSO Live.” Music and Letters, Vol. 95, no.2, May 2014, pp. 251–272. Academic Search Complete. pp. 251-272. EBSCOhost, ezproxy.elon.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=a9h&AN=97037910&site=ehost-live.

Ballico, Christina, and Dave Carter. “A State of Constant Prodding: Live Music, Precarity and Regulation.” Cultural Trends, vol. 27, no. 3, July 2018, pp. 203–217. Academic Search Complete, EBSCOhost, doi:10.1080/09548963.2018.1474007. Accessed 19 June 2018.

Bliss, Karen, et al. “'A Hell Of A Ride' For Arena Managers.” Billboard, vol. 128, no. 24, 24 Sept. 2016, pp. 55–60. Academic Search Complete, EBSCOhost, ezproxy.elon.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=a9h&AN=118227731&site=ehost-live. Accessed 19 June 2018.

Cohen, Marci, and Grover Baker. “Takin’ Care of Business: Music Business Reference.” Music Reference Services Quarterly, vol. 18, no. 3/4, July 2015, pp. 157–163. Academic Search Complete, EBSCOhost, doi:10.1080/10588167.2015.1091691. Accessed 19 June 2018.

Coleman, Mark, and Herbi Greene. “`We Were Just Happy Freaks, Man'.” Rolling Stone, no. 717, 21 Sept. 1995, p. 52. Academic Search Complete, EBSCOhost, ezproxy.elon.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=a9h&AN=9510046828&site=ehost-live. Accessed 19 June 2018.

Cummins-Russell, Thomas A., and Norma M. Rantisi. “Networks and Place in Montreal's Independent Music Industry.” Canadian Geographer, vol. 56, no. 1, 2012, pp. 80–97. Academic Search Complete, EBSCOhost, doi:10.1111/j.1541-0064.2011.00399.x. Accessed 19 June 2018.

Gabe, Todd M., and Nicholas A. Lisac. “A Note on the Effects of Popular Music Concerts on Hospitality Sales: The Case of Waterfront Concerts in Bangor, Maine.” Review of Regional Studies, vol. 44, no. 1, June 2014, pp. 61–74. Academic Search Complete, EBSCOhost, ezproxy.elon.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=a9h&AN=99380172&site=ehost-live. Accessed 19 June 2018.

Global Economy's Effect on The Live Music Industry

By Joshua Scovern

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