What Happens When You Sign a Music Contract

How the Music Industry Works

Most artists dream of being signed to a major record label. They think all their financial problems are gone and they can just focus on the music. The problem is that the industry is setup to always benefit the label over the artists.

According to Citigroup, musicians only made  12% of the $43 billion made in the music industry in 2017. Most of the revenue was generated  from touring which explains why  most new artists are entered into 360 deals. These young artists end up signing away their publishing for an advance check and don’t full comprehend what’s in the contract.

The New Age

Fortunately in 2019, more artists are educating themselves and opting to remain independent. Russ is an example of an artists who built his brand independently and leveraged it for a lucrative record deal. He is the only new artists who was featured on Forbes 2018 Hip Hop Cash Kings list.

Signed artists are now renegotiating their contracts or leaving major labels.  Chris Brown  just signed a new record deal which makes him the youngest artist to own his masters.The internet has provided all the information and tools creatives need, there’s no need to sign to a label. Artists should focus on developing their brand and reaching their audience.

The D.I Y artist is the future !

You no longer need a label to distribute your music when you have companies like Distrokid . You don’t need a label to push your music  when you have Instagram, Facebook ,and YouTube. Everything that you need is right there in your phone.

If you’re an artists that feels like you need help or would like to further the conversation, please feel free to text me at (484)-494-2372. Drop a comment below and let me know what you think about signing to a label verses staying independent.

Should Artists learn how to market themselves?

Should Artists learn how to market themselves?

[]Lately Ive been struggling with a way to provide something for artists. While I already provide instrumentals, I really want to do something beneficial. I get offers all the time on my facebook page for promotional post but in my opinion it doesn’t make sense.  My audience is primarily other artists and producers, not music listeners which is what they need.

Recently I spoke with an artist from Romania and he expressed how no one in his country supports independent artists. I explained to him that no one is going to support someone they don’t see and instead of focusing on his country he should use the internet.

The beauty of social media is that you can expand your world and allow other people to experience your art.  Just because you release music doesn’t mean people will automatically see it, you have to promote it.

Another issue is artists have this idea that teaming up with someone and not paying them going to get them somewhere. If you’re not willing to invest into yourself and into your team, you wont be successful.

It takes a lot of grind to get yourself to a place where you can survive solely off your music. You either do everything yourself like a D.I.Y Artist or you pay someone to do the heavy lifting. In my opinion,  THE D.I.Y ARTISTS WILL BE KING IN THE NEXT 2  TO 5 YEARS!!!  Artists like Russ, J Cole , Tyler the Creator,  and J.I.D are just the beginning. If you cant record yourself, produce your records and promote your music, you will have a hard time. Or you will end up signing away a large portion of your royalties and publishing for those services like most new artists today.

In today’s music  climate, labels wont even sign you unless you have close to 1 million followers and/or subscribers on a popular platform. This is why you are seeing a surge of YouTube stars like Queen Naija , DDG  and Instagram models signing record deals. ( THEY’RE MUSIC IS USUALLY TRASH TOO)!! Being able to grab the attention of the masses is valuable in any business and the tools are readily available to everyone.

Back in 2016, I offered an artists marketing program to show artists how to market on social media and no ones cared for the info. I went as far as showing artists how to build their own websites, build an email list, market on Facebook and Instagram all for nothing.

I also tried this year to offering promo services to artists who purchased my “500 beat pack” and only one artist (out of hundreds) took advantage. I created a survey below to get an idea of what my audience wants & needs.

 

Do you want to be a D.I.Y Artists? Or have someone else doing the heavy lifting?

(Answer Below )

 

How To Upload Music On Spotify & Apple Music

It seems like everyday Spotify is announcing something new for independent artists . Most recently they revealed a beta feature which will allow artists to upload directly to Spotify. This feature has been rolled out to selected independent artists via invitation only with the goal of making improvements. While this feature is amazing,

What about everyone else?

Its fairly easy to release music to all streaming services. All you need is a digital music distribution company like Distrokid. There are plenty of others to choose from, but with the recent investment into Distrokid , it has become the preferred choice for Spotify.

DistroKid

RECOMMENDED ARTIST DISTRIBUTORS

These distributors meet our basic standards for providing quality metadata and protecting against infringement. They also offer instant access to Spotify for Artists for all of their users.

CD Baby, EmuBands    

 SPOTIFY 

Distrokid is a digital distribution service for musicians which allow them to place there music on online stores and streaming services. When people listen to the music on those platforms, Distrokid collects the funds and pays the musicians.

Why DistroKid over other services? 

The difference between DistroKid and other services is they allow unlimited uploads for a low price. Majority of other services charge per upload of song and/or album, which adds up or time. Also most companies take a percentage of the royalties but with Distrokid, the Artists keeps 100% of their royalties.

How much does DistroKids cost?

It cost as low as $19.99 to uploaded unlimited songs yearly!  There are also other plan options if more services are needed.

How do I sign up?

Just head over to their website and create an account! 

Once you have your Distrokid account setup and you’ve selected your plan, its time to release music. Now that your music is scheduled for release you need to claim your Spotify for Artists account and you Apple Music for Artist account.

One thing to point out is that Spotify has recently announced a new feature that allows artists to submit a unreleased track for playlist consideration. Being placed on the right playlist like RapCaviar, can turn a record into a major hit on the billboard charts. All you need to do is head over to your Spotify for Artists account and select “Catalog” and then “Unreleased track”. Then select which unreleased song you would like to submit.

Hopefully we will see more artists being selected to upload directly to Spotify but Distrokid is a great services for Spotify and all other services.

FOLLOW  US ON SPOTIFY! 

Soundcloud Opens Monetization To More Independent Artists

soundcloud-opens-up-monetization-to-independent-artists

Soundcloud has decided to open up its direct monetization program, SoundCloud Premier, to all Pro and Pro Unlimited Subscribers who are eligible. This means that hundred of thousands of independent artists will have the ability to monetize their music.

Some believe Soundcloud is responding to Spotifys New Feature that allows artists to upload music directly to the platform. Either way , this is great news to all independent artists. Not only does Soundcloud meet and beats all other streaming services when it comes to revenue but they also will be sending out monthly payments. The service come at no extra cost and is available immediately.

VIA SOUNDCLOUD 

So, how do you know if you’re eligible?

You must be an independent creator and a Pro or Pro Unlimited subscriber. For now, we’re opening the program up to original music content only, but stay tuned for more details as we continue to expand.

We’re starting out by inviting creators with 5,000 plays in the past month (from SoundCloud monetized countries: US, UK, Canada, Australia, France, Germany, Ireland, The Netherlands, New Zealand), then scaling over time to as many creators as possible. So we recommend you keep creating and promoting your original content, and engaging with your fans in the process. You’ll receive an email and in-product notification once you’re in.

If you’re interested  in signing up head over to Creator Guide for more details.

NEED INSTRUMENTALS? Click Here for the best quality Beats/ Instrumentals online as well as FREE Downloads for independent artists.

Is Chance The Rapper an Independent Artist?

Chance The Rapper sits down with Joe Budden to discuss whether he is considered independent. He explained from his perspective of what makes an artist independent and warns against artists signing away their masters and publishing. Joe then expresses why he felt Chance wasn’t an indie artists citing the Apple Music deal; which Chance The Rapper was paid $500k for a 2 week exclusive release.

All artists should consider their intellectual property and how signing away their rights could impact their future. As mention in a previous post, most new artists are signed into a 360 deals and may not fully understand the consequences of that decision. Artists like Prince and Michael Jackson fought hard for this right and we as creatives have take the time to understand why its important.

Epik The Dawn has been vocal about why he doesn’t, in his words “F*#$ with the music industry. He has explained countless times that artists don’t need labels anymore. Labels are like an loans, everything is recoupable and they take the rights to the music. In todays time, the resources are available and the audience is at your finger tips. Epik has made it his mission to provide independent artists with the best quality instrumentals online as well as passing down the knowledge he has used in order to live off his music and remain free.

Chance The Rapper is only one of the many artists out their doing it themselves and we believe their will be more to follow. Stay #DFRNT

What is Music Modernization Act?

As of today (September 25, 2018), the Music Modernization Act has been passed by the senate and is off to the white house for the presidents signature.

So whats the Music Modernization Act?

The music Industry had been operating under an outdated copy write law from 1908 that has left many creatives on the short end of the stick. For the first time in history, songwriters, publishers, labels, and major streaming services agree on a piece of legislation. The MMA (music modernization act) is about updating the copy write law to reflect the 21st century and to make sure songwriters, producers, mixers, and sound engineers are fairly compensated.

A lot is changing with this bill and it can be a little confusing to understand. Luckily, Digital Music News took the time to compare the current law vs the MMA.  Check out the link below .

Break out of the current copy write law vs the Music Modernization Act

Spotify Lets Independent Artists Upload Music Directly!

a-new-way-to-get-your-music-on-spotify

Yesterday Spotify announced their new beta feature which allows independent artists to upload music directly from Spotify for Artists. Independent artists will have more control over their releases and will have access to their meta data. The feature is available via invitation only to a few hundred artists at the moment but will roll out to more artist in the future.

Before this feature, the only option for artists to upload was through a label or a third party digital aggregator.  Companies like  Tunecore and Distrokid have been used by independent artists for a long time and they do charge for their service. Luckly Spotify has stated that this feature will be free and payments will be send directly to the artists monthly.  According to The Verge,

“Spotify will offer artists 50 percent of Spotify’s net revenue and 100 percent of royalties for the songs they upload”.

For now, most artists will still need to use a third party for releases but the company is working to figure out what artists need. Hopefully we will see this new feature rolling out to more artists soon. If it does come about, this will change the industry drastically. Shout to Spotify for listening to the creatives. Check out the official announcement here!

What are Royalties and Publishing?

Royalties and publishing

Whether you are independent or signed it is vital to your future to understand royalties and publishing. You don’t want to be like R Kelly and have the rights to your music taken from you due to your ignorance. Heres a basic understanding of royalties and how you are paid.

What are royalties?

Royalties are a percentage of a wholesale price. For example, if you have 10% royalties and your album sells for $10,  then your royalties are $1 per album.

Theres a few type of royalties every artist needs to understand.

  • Mechanical Royalties for artist
  • Mechanical Royalties for songwriter, composure, and publisher (Know as “Publishing”)
  • Performance rights royalties
  • Synchronization Royalties
  • Print Royalties

Whenever you record a song in the studio, the original file is consider your “masters”. Each recording has two components; the sound recording and the composition (melody/ lyrics). No one can copy that record without a license called compulsory license. Once they obtain the rights to distribute copies of the master file in the form of cds, vinyl, etc, you are paid out mechanical royalties. Pretty much mechanical royalties are monies paid to the copyright holder for reproduced songs.

recording-from-stem
recording-from-stem

Mechanical royalties for the sound recording are paid to the performer (artist) and the copyright holder which is usually the label. If you are not signed to a label then you would receive your full percentage. If you are signed then your percentage is based off your deal. (example approve)

Mechanical royalties for the composition are paid out to the songwriter, composure, and publisher. These mechanical royalties to the songwriter (50%) and publisher (50%) are usually called the “Publishing”. If you have registered as a publisher then you would receive both percentages.

Performance rights royalties are paid out to the writer anytime the record is performed publicly .This includes nightclubs, radio stations, streaming services,  live events and even elevators. These royalties are collect through performing right organization (PRO)  such as ASCAP,  BMI, and SESAC.

Synchronization royalties are paid out to the songwriter and publisher anytime a song is in the background for movies, tv shows, and commercials.

Print royalties are paid out to the songwriter and publisher whenever sales are made on printed music sheets.

Understanding royalties and publishing can be confusing but I hope this information helped. If you would like to dive deeper into understanding royalties and the music business , I would suggest reading, “All You Need to Know About he Music Business” by Donald S. Passman. 

What is a 360 deal?

What is a 360 deal in the Music Industry?

What is a 36 deal in the Music Industry?

Whats a 360 deal?

A 360 deal is a contractual agreement that allows a record label to collect a percentage of all streams of revenue generated by the signed artist/s. The label will take a percentage of not only the record sales but digital sales, touring, merchandise, publishing, endorsement deals, and your right leg. Ok maybe I took it a little too far.

At the end of the day, labels are not generating as much income due to the decline of physical sales(CD & etc). In order to survive in the streaming world, labels will insist on taking a piece of all earning, hints the 360 degree reference.

Labels justify taking these percentages by stating they provided financial support into launch the artist’s into stardom. Because of their investment, these artists can create incomes from touring, merchandise, fan clubs ,and even endorsements. Whether its a major or a independent label, these deals are not going anywhere. The problem with 360 deals is that artists are affected in the long term. Unless they have massive clout and leverage, they wont own the masters to their music. Once out of their deal, without the copyright to the music, they will not be able to redistribute the music.

Labels will offer a large advance but will recoup from royalties earned. My advice would be to stay clear of a 360 deal unless your in it for the short term If artists want to own their music and remain free the best option is to stay independent or until they have gained enough leverage.

Epikbeats has been working with independent artist for more then 11 years and we will continue to provide the best quality beats and instrumentals online. It is our mission to offering information to help artists understand the music industry and how to build independently.