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Earning money when music is free
The sale of phonograms dies. In the last ten years, the sector has shrunk by 64% between 1999 and 2011. Meanwhile, the amount of money given out by the US public to listen to musical instruments dropped from 71 to 26 dollars. There' s always been Doomsayer who has predicted the end of the musical industries as we know them, but it looks like they' re right this year.
This sharp drop was partly driven by counterfeiting, but it doesn't tell the whole tale. Downloading digital files has radically altered the way people buy their tunes, and iTunes has saved 30% of every time they sell them. Rather than buying whole records, the supporters started buying only one or two songs for one buck each.
It was a severe hit for an audio business that continues to be driven primarily by full length record buying. In the United States, eight years after the launch of iTunes, the average listener download rate was just 25 records per year per individual. This is not enough to maintain a multi-billion-Dollar industry. They help generate millions of dollar in revenues for the sector every year, but they do so to a large extent through the cannibalization of musicals.
It' a simple choice, and that's why so many folks switch to streamed video as their primary resource for listening to it. Neither of this is good news for the entire recording world. When we get there, it is not clear what share of these billion dollar will go into the sound recording industry's pocket.
However, what is poor information for the record business is not necessarily poor information for performers. For the first tale in human history, using the web has enabled an performer to connect with and live off his or her favorite tunes to audiences around the globe without impressing goalkeepers or spending billions on his or her own advertising budgets.
Performers can now have full accountability for their own career - including earning a much higher share of revenues from sale and other revenues than they would have in the past. Be you a great, Indian or totally freelance performer, the new musical industries have opened up more opportunities for achievement than ever before.
It enables the web to reaches tens of thousands of fans around the globe at amazingly low costs. It' great for the majorstream performers who can spend tens of thousands of dollars paying close scrutiny and then earn a little money from each audience. Start a website, sell on YouTube, Twitter and Facebook, open an on-line shop and even sell your tunes to big stores for less than $100.
It' s a fact that CD downloading and CD selling are likely to decline further until they are no longer a significant driver of overall revenue for the sector. Instead, streamed messaging such as Spotify or YouTube's new Key will probably be the prime way how humans hear your favorite soundtrack. However, there is an amazing amount of possibilities for non-signed, indian and large labels as well.
Not only has the web connected artists with supporters all over the globe almost free of charge, it has also opened up a dozen new potential sources of income. Nipsey Hussle is an especially talented performer in an art sector that is typically incapable of innovation. Also, he produced 1000 CDs of the record, full of exquisite contents and extra items that could be bought for $100 each.
Hussle has increased its stake this year with Mailbox Money. Releasing the record for free, he produced 100 photocopies of the record, this edition with exclusively written contents and his own contacts. Hussle earned $60,000 in CD sale proceeds in the weeks his record was out. It' in an area rich in tales of performers who sell hundred thousand of dollar value CD's just to never see a cent of them because of the compensation charges due to their labels.
In a stereotyped sector that is sluggish, Hussle has found a way to innovation. Hundreds of instances exist of how performers try out unorthodox ways to make money in the musical industries with great results. Why are supporters willing to spend so much money on an effort they can get for free, minus a few exclusives?
Turns out the supporters want to help performers, and they are willing to put money on the tables as long as that money gets to the performer and not a distributor. It'?s no small thing - supporters are willing to spend serious money on their favourite performers. Ready to give away millions.
Turns out that supporters want to be paid to help their favourite performers, and are willing to do so if they only have the chance. An Nielsen survey found that more than half of the most energetic audiences would buy exclusively from a favourite record producing group.
But, unexpectedly, 1/5 of even the least energetic musical enthusiasts who are referred to as "ambivalent consumers" are willing to buy premium quality entertainment if they have the time. It is not that supporters are not willing to give - it is that the record business does not give them enough opportunities to do so for what they actually want.
Mr Nielsen estimates that the musical entertainment sector could generate between $560 million and $2.6 billion in revenues annually by giving supporters better rights to select entertainment. Keys are that the contents must be precious and exclusively. It is not enough to publish your songs on Spotify and then offer the same record for purchase with a bonustrack.
What can you do to take full benefit of the new possibilities in the musical world? Performing in person was the way to make a livelihood from producing long before the musical industries even started. Listening to life is lively and good and manages to thrive even when the whole band is struggling.
There will be performances as long as there's one. Twitch allows you to broadcast your performances in real time, communicate with your supporters via instant messaging and videos, get paid and resell goods. It' s a small but private amount and the supporters are willing to spend more to actually get together with a favourite performer and get lost.
Exclusive products are a prime way of increasing incomes in almost all industries. Humans really like to be the very first to have something; they like to have contents no one else has; and they especially like to have articles customized by a favourite musician. That is why small benefits are so precious, and that is why physically selling can be so efficient.
You can, for example, make the most of your merchandising items by taking full benefit of restricted edition series, which include face-to-face signatures and handwritten memos, and select merchandising items that are not available to those who have not purchased your soundtrack. The Nielsen survey I already talked about was that it was exclusives that fan audiences were longing for, and it's exclusives that could bring the $1 billion in annual sales to the record business.
Sponsorship is not new in the musical world. Records suffer from falling musical demand, but the search is on for performers. Everyday career information!