As technology and social media continues to grow, the Entertainment industry does so as well. Creativity has been growing exponentially over the recent years, due to consumer demand. This demand has allowed for new doors to be opened for creative, entertaining, and innovative people. With the population of the world climbing over 7 billion, it is no surprise that only a small percentage are reaping the rewards of constant revenue, within the Entertainment industry. And, an even smaller percentage of that revenue is being handed over to artists, musicians and producers.
Labels Want A Larger Slice of the Pie.
Not too long ago, record labels and large production companies gave reasonable deals to new artists, (at least compared to today’s standard contracts). Artists were able to acquire millions of dollars in revenue from national or worldwide tours, which increased merchandise sales, album sales and much more. Since marketing and advertising has become one of the most focused aspects of record deals, labels have now invested billions of dollars on mainstream artists. One of the most recent areas that labels have been trying to place their hands on is the royalty earnings, in order to profit from these billion dollar investments. These new contracts, called “360 Deals,” allow labels to receive income from all profits made by artists without exceptions.
How can we (artists/musicians, producers) profit then?
Although these deals are affecting artists financially, there are methods of increasing revenue. Primarily, revise all contracts, especially 360 Deals! Here are some examples of performance, mechanical, sync licensing, print and digital royalties, as listed by Hypebot.com, on their recently updated article Top 30 Sources of Songwriter Royalties and Fees:
-TV -Ringtones -Videogames -Lyrics reprints
-Live Venues -Record sales -Apps -Music Sheet Books
-Radio -Film soundtracks -Commercials -Online Streaming
-Sampled music -Greeting cards -DVDs/Blu-Rays -Internet Radio
-TV -Ringtones -Videogames -Lyrics reprints
-Live Venues -Record sales -Apps -Music Sheet Books
-Radio -Film soundtracks -Commercials -Online Streaming
-Sampled music -Greeting cards -DVDs/Blu-Rays -Internet Radio
*Note: Royalty amounts will vary; depending on which media you are most accessible to.
There has been an increase in royalties according to another article on Hypebot.com, titled Global Royalty Collections Climb 5.5% Despite Economic Downturn, which states the following about 2010-2011:
“The year saw an unexpected recovery in mechanical reproduction royalties for recorded works, driven by results in North America, Asia and Latin America and by the digital sector. However, public performance continued to provide the lion’s share of revenues for creators and music publishers, climbing 7.5% to €5.5 billion, or 73% of all revenues. With the advertising market predicting growth through to 2014, those figures are expected to climb further.”
Note: €5.5 billion is equivalent to $9.91 billion USD.
This provides some hope for artists and writers who are willing to be creative as well as daring enough to submit their works in multiple media outlets. Although labels are expanding on the way they profit, other outlets, such as social media sites, are becoming large nesting grounds for artists to promote themselves and their works. So if anyone is wondering, “will I be able to make money?” the answer is, yes! How much, is a completely different issue.
References:
http://www.ehow.com/info_8594841_differences-between-sync-performance-royalties.html
http://www.enotes.com/topic/Royalties#Print_royalties_.28music.29
http://www.enotes.com/topic/Royalties#Royalties_in_digital_distribution
http://entertainment.howstuffworks.com/music-royalties6.htm
http://www.hypebot.com/
http://www.hypebot.com/hypebot/2012/02/30-sources-of-royalties-and-fees-for-songwriters.html
http://www.hypebot.com/hypebot/2012/02/global-royalty-collections-climb-55-despite-economic-downturn.html
http://musicians.about.com/od/ah/g/360deals.htm
