The Music Industry: Streams of Earning Income for Artists and Song Producers

This article discusses the various streams of earning income in the music industry for artists and song producers. It covers topics such as royalties, license tracks, sample packs, beats selling, merchandising, and live plays. The article also explores the changes that have occurred in the music industry over the past 20 years.

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The music industry
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The Music Industry
Introduction
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, pg1560). 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 market place, 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

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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

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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

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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

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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.

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References
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