Alternative Music Revenue: Where do Artists Go Next?
The music world has always been steadfast in pursuing innovations in the industry. From listening to records, to buying cassettes and CDs, and now streaming from any device imaginable, there is no doubt that the music industry has permanently shifted to the streaming game. With strong companies holding streaming services, such as Amazon Music , Apple Music, Spotify, Tidal, and SoundCloud , everyone wants a piece of the streaming service pie. And while all the attention may be on the streaming wars, artists are left behind to fight for better royalties. For example, according to Quartz, Spotify pays whoever owns the right to a song between $0.006 to $0.0084 per stream. Making matters even more complicated, not all artists own the rights to their songs. That is where the record labels come in, who can divide these payments out to songwriters, composers, producers, etc. And though Indie Labels have been making a push to toss out traditional record labels, well-known artists – think Kanye West, Taylor Swift, Ed Sheeran, Coldplay - are still tied down to those major record labels (Sony BMG, Universal Music Group, and Warner Music Group, a.k.a “The Big Three”) . So, where do the artists go from here?
In a year decimated by the COVID -19 pandemic, one would assume that streaming has been up. While that assumption is correct (streaming is up for the first half of 2020 according to the Recording Industry Association of America (RIAA) ) , that doesn’t mean that every artist has shared the success equally. For those who did pivot throughout the year, what was their strategy? Sure, per Brian Heater from techcrunch.com, “Streaming now makes up 85% of all revenue in the U.S.,” but what about artists who rely on tours and venues? With the cancellation of many popular concerts such as Life in Color, Ultra, and Rolling Loud, artists turned to a virtual format that could possibly change the landscape of music once again.
Due to quarantine measures, music consumers would be hungry for visual materials. With nowhere to go to see music live, artists had to innovate to create visual entertainment while keeping themselves safe. One notable example was Travis Scott, who partnered up with Epic Games to create a multi-day virtual “concert” through the widely popular game, Fortnite. Through this platform, Scott also released a new song with Kid Cudi, “The Scotts”, which debuted at No.1 on Billboard. Scott was recreated in the game, “performing” some of his well-known songs at the center of the Fortnite stage. This comes after artist Marshmello formed the same partnership earlier in February to the same success. It seems that the partnership between games and music is inevitable; rap duo Run The Jewels were able to feature on in-game soundtracks from games such as Rogue Company and Cyberpunk 2077. Needless to say, with many people staying home, there is surely more leisure time to sit back and enjoy a game that features music from well-known artists.
Being home most of the day also allowed a competitive edge for video and streaming services such as YouTube and StageIt. With Ariana Grande and Justin Bieber coming together in their music video “Stuck With U, they showed the creativity that could be possible even in a lockdown scenario. They were able to get clips from different people and form a music video, showing once again how important the digital world is. However, spectacles such as these are not new to YouTube. As a matter of fact, YouTube is becoming a platform for these artists to create even more content for their fans. For instance, Bieber was also involved in documentaries with YouTube, with the most recent one being “Justin Bieber: Next Chapter.”As part of YouTube Originals, it seems logical that this is the next path for many musicians who want to explore other content creation. Sam Burwell, head of Social & Influencer Marketing for YouTube originals, explains that it is time for artists to come up with production that talent cannot do alone. Similarly, deeper interactions with fans have also transpired over podcasts and livestreams on Twitch through the Twitch for Musicians initiative.
Source: StageIt
And for artists who still wanted to have a concert experience, websites such as StageIt.com came to the rescue. StageIt.com allows for artists to perform and still be supported by their fans by selling virtual tickets. Dubbed as “Your online concert venue,” this site established what once seemed like a far-fetched joke of an idea. Some artists took virtual concerts into their own hands. Billie Eilish was one of these artists, holding a private virtual concert, the “Where Do We Go Livestream.” She went for an even more direct approach, selling her tickets through her website for her fans to sell out. Don’t be surprised if artists take this route with their music as well!
With touring not being a possibility for quite some time, creative artists have turned to other means of making income, and even donating to charities. With an increase in visual demand, artists have turned to partnerships with companies that can make sure their names are still talked about in the public sphere. With this also came a wave of dependence on merchandising, which is a large chunk of an artists’ income. Overall, artists still have to push what they’re best known for – music. But what’s now changing in the industry is how this music can be delivered in more creative means. It appears that the pandemic has really put artistry back into many artists, a spectacle that is awe-inspiring to watch unfold before our eyes.