According to Citigroup’s financial report, the music industry has generated $43 billion in 2017. Unfortunately, only 12% ( $5 billion) of the $43 billion was paid out to musician. Consumers are spending more then ever on music and the music industry in benefiting , up $20 billion from last year. The increase is due to the growth of concerts and touring.
Based on this report , Labels and publishers are making the bulk and if artist are only being paid out 12%, imagine what producers are making. If you understand publishing, then you know producers make 1-3% percentage of the monies generated per album. At the end of the day, artists and producers are not making enough in the music industry.
Most artists sign a 360 deal, which means labels are taking a percentage from all monies generated by that artists. This includes touring sales which has become a huge money maker in today’s music industry. Most labels are more interested in clout chasers who have a large social media presents then talented musicians.
If musicians want to make money its better to either go completely independent or establish enough clout to renegotiated a better deal with labels. Something has to change in the industry, there is no reason why musicians are not taking home more money when they are the creators of the music. Hopefully we will see better deals in the future but from the looks of things, it will be a while before musician are paid what they deserve.
Check out the full report : Citigroup Inc.