How Musicians and Producers Make Money in the Digital Age
The digital age has transformed the music industry, creating new opportunities and challenges for musicians and producers alike. While traditional revenue streams like album sales have declined, the digital landscape offers new ways to monetize music. Below, we’ll explore how both musicians and producers make money today, as well as key concepts like music publishing royalties, who pays them, and how to collect them.
1. How Musicians Make Money in the Digital Age
Today, musicians make money through a variety of digital channels. The most well-known of these are streaming platforms like Spotify, Apple Music, and YouTube, where artists can earn royalties based on the number of streams their music receives. While the per-stream payout is typically low, musicians can generate significant revenue if their catalog is properly monetized and set up to receive both master and publishing royalties.
In addition to streaming, musicians can earn money through digital sales of music, often via platforms like iTunes or Bandcamp. Digital downloads tend to offer higher royalties than streaming, though the market for them has shrunk in favor of streaming services.
Musicians can also monetize their social media presence and build fan bases on platforms like Instagram, TikTok, and Patreon. For example, artists can offer exclusive content, merchandise, or even live performances to fans who support them through paid subscriptions or one-time contributions.Live streaming of performances, either through platforms like Twitch or YouTube Live or directly through a musician's own website, has become an additional revenue stream. In the technological market of today, this trend continues to thrive.
2. How Producers Make Money in the Digital Age
Music producers today make money primarily through their work in the studio, producing, mixing, or mastering tracks for artists. Many producers negotiate a flat fee for their services, while others may earn a percentage of the revenue generated by the music, including royalties from streaming, album sales, and licensing deals. Like artists, producers can earn significant income from properly registering and collecting their publishing royalties.
Producers can also make money through royalties if they have a co-writing credit on a song, meaning they contributed to the composition as well as the production. In addition to working with individual artists, many producers also sign deals with record labels, which can offer steady work and higher-profile projects.Online platforms like BeatStars and Splice also allow producers to sell beats and sample packs, creating a passive income stream. These platforms allow producers to monetize their skills by licensing beats to other artists who want to use them in their tracks.
3. What Are Music Publishing Royalties?Music publishing royalties are payments made to songwriters and composers for the use of their music in various contexts. These royalties come from various sources, including public performances, mechanical royalties, and synchronization royalties (for use in TV shows, movies, or commercials). Essentially, music publishing royalties ensure that the creators of a song are compensated whenever their work is used commercially.
4. Who Pays Music Publishing Royalties?
Music publishing royalties are typically paid by music users—those who use copyrighted songs in their businesses or media. This can include record labels, streaming platforms, radio stations, television networks, movie studios, advertisers, and even venues hosting live performances. These entities pay fees to music publishers or performing rights organizations (PROs) to license the music they use.
5. How to Collect Music Publishing Royalties
To collect music publishing royalties, songwriters and composers need to register their works with a performing rights organization (PRO) such as ASCAP, BMI, or SESAC in the U.S. These organizations track the use of songs in public performances, broadcasts, and streaming services, and collect royalties on behalf of the songwriters. Additionally, a music publisher can assist with collecting mechanical and synchronization royalties, ensuring songwriters receive fair compensation for every usage of their work. That is where ThatsXpensive Publishing, a music publishing administrator, comes into the picture.
6. What Is a Music Publishing Admin?
A music publishing administrator is a company or individual that helps songwriters collect and manage their publishing royalties. They handle tasks like registering songs with PROs, negotiating licensing deals, and ensuring that royalties are collected from all sources. While a music publisher may own the copyright to the music, a publishing admin helps songwriters maximize their earnings by actively managing their royalties and advocating for their work. Figures such as ThatsXpensive Publishing CEO and founder, Ramey Syufy, have been helping producers, songwriters, and artists collect their publishing royalties in the modern age.
In summary, both musicians and producers today have diverse avenues for generating income in the digital landscape. Understanding music publishing royalties and how to collect them is crucial for maximizing earnings, and having a music publishing administrator on your side can simplify the process. Whether you’re a songwriter, performer, or producer, the digital age offers many ways to monetize your music and build a sustainable career.