In 2017 the music industry made $43 billion; artists took away only 12%
The music industry is a cash cow, but artists aren’t saying moo.
Music is undoubtedly one of the most lucrative businesses to be in; and not just if you are the front man or woman.
The industry is a massive pie, with slivers going to everyone involved; so much so that the artists aren’t getting all that much of it.
In a recent report from Citigroup, the industry of music made $43 billion in 2017, with artists walking away with 12% of it.
Besides adapting to the evolution of consumption (CD, digital, etc), they share their piece of the pie with the team that helped them get that pie in the first place like publishers, tech companies, personal assistants, etc etc.
For most to all artists, money lies in touring; the old fashioned way!
On the rise
12% may seem low, however as Citigroup points out, it is on “the rise (it was just 7% of industry revenues in 2000).”
Streaming services have also played a role in the changes we’re seeing throughout the industry, but times are young and if harnessed correctly, who knows what streams of revenue could open?
For example, “existing web-based distribution firms could organically morph into music labels (by targeting younger, less established artists). This would allow artists to capture more of music’s value while allowing Internet-based music distributors to capture profit pools currently earned by the music labels.”
All in all, there are so many possibilities within the music industry, we need to embrace change and drive it to a place where all involved may see success for their contribution to listeners health and happiness.
