Category Archives for "Book Excerpt"

Recognizing Your Two Types Of Fans

2 types of fansEvery artist, whether they’re selling out arenas or still working in clubs, has two types of fans. Most artists never bother to differentiate between the two and therefore don’t grow their fan base as quickly because they tend to cater to the wrong group. In this excerpt from the latest edition of my Music 4.1: A Survival Guide For Making Music In The Internet Age book, you’ll see the differences between these groups and why one is more critical to your success.

“Music 4.0 is totally dependent upon the development, care, and feeding of your fanbase. Your core fans or “tribe” is only a piece of your total audience though. Your audience can be broken down into the following two categories: your casual fans and your core fans.

Your total audience, or your fans, are fervent about a particular small niche of music that’s usually a subcategory of a larger genre, which means that they love speed metal (as opposed to the much larger metal or hard-rock genres), bluegrass (as compared to the larger country-music genre), or alien marching bands (as opposed to either of the larger alien-music or marching-band genres). If you’re an artist in that particular niche, your audience will automatically gravitate toward you, but still might not be your fans. This includes casual fans, occasional listeners, and people who like what you’re doing yet aren’t particularly passionate about it.

Although this part of your audience can’t be ignored, it’s probably not a good idea to expend all your energy on it. They’re aware of you and will probably give you a try with every release, unless they’re disappointed too many times in a row. They can be turned into passionate fans though. One “hit” song or album, a change in image, or a change in general perception, and they become the passionate critical mass needed for the breakout that turns a respected artist into a true star.

In Music 4.0, your most important core audience contains your most passionate fans, or your “tribe.” They’ll buy whatever you have to sell, work for free, recruit other fans, and basically do anything you ask. All they want is access to and communication with the artist, which is the basis of Music 4.0.

So to summarize:

  • Your audience consists of your casual fans and your core fans
  • Fans may like an artist but may not be particularly passionate
  • Your core fans (true fans, uber-fans, super fans, tribe) are very passionate about everything you do
  • Most of your energy should be directed towards your core fans”

Knowing the difference between fan groups can make a difference between chasing your tail trying to please casual fans that only marginally care about you, or growing your audience by cultivating your most passionate ones.

You can read more from The Mixing Engineer’s Handbook and my other books on the excerpt section of bobbyowsinski.com.

November 28, 2016

4 Rules To Avoid Your Fans Wrath On Facebook

Facebook logoIf you’re an artist or band and you’re on Facebook, you want to make that audience grow and keep them engaged. The problem is that there are right and wrong ways to do this. Choose the wrong way and you either look like a schmuck or even worse, anger your fanbase. Here are 4 rules to follow on Facebook that will keep you out of trouble with those fans. They’re simple and easy, all you have to do is follow them.

1. Don’t Like your own post. This just looks bad and doesn’t serve any real purpose. It won’t help your Like count and it just feels like you’re patting yourself on the back for how smart you are. You’re not like that, so don’t do it.

2. Don’t post or tag photos of fans, crew or venue employees without their permission. You might think that the people will be flattered, and that may be true for most, but there’s always someone that’s there discretely and wants to keep it that way. Just ask permission first. Want to be even safer? Get written permission with a short release form.

3. Don’t tag people or pages that aren’t relevant to you. This one personally steams me the most. I just hate it when someone tags me in a photo that I wasn’t involved with in an effort to get me to check it out. It’s just bad form, doesn’t accomplish the task, and angers your followers, so don’t do it.

4. Don’t ask for Likes, Comments, or Share. This one is sort of borderline in that there’s an acceptable way and an unacceptable way to do it. First of all, it’s against Facebook’s terms to ask for a Like, although people do it all the time. A better way to do this, and also keeps it within FB’s terms of use, is through through a Facebook promotions company like Woobox. This allows you to set up contests or giveaways that hopefully will result in more Likes or Shares. You pay for it, but it’s a much more elegant and legal way to accomplish the same thing. As for Comments, the best way to get more is to ask more questions. Works every time.

Follow these 4 rules and you’ll not only stay out of trouble with your fans and followers, but look a whole lot more professional in doing so as well.

You can find more social media tips and tricks from my Social Media Promotion for Musicians book.

November 10, 2016

Understanding Your Fanbase

Understanding Your FanbaseYour place in our current music world is totally dependent upon the development, care, and feeding of your fanbase, and this excerpt from my Music 4.1 Internet Music Guidebook will help you better understand your audience so you can grow it.

First of all, understand that your core fans or “tribe” is only a piece of your total audience. Your audience can actually be broken down into the following two categories:

your casual fans and your core fans.

Your total audience, or your fans, is fervent about a particular small niche of music that’s usually a subcategory of a larger genre, which means that they love speed metal (as opposed to the much larger metal or hard-rock genres), bluegrass (as compared to the larger country-music genre), or alien marching bands (as opposed to either of the larger alien-music or marching-band genres).

If you’re an artist in a particular niche, your audience will automatically gravitate toward you, but still might not be your fans. This includes casual fans, occasional listeners, and people who like what you’re doing yet aren’t particularly passionate about it.

Although this part of your audience can’t be ignored, it’s probably not a good idea to expend all your energy on it. They’re aware of you and will probably give you a try with every release, unless they’re disappointed too many times in a row. They can be turned into passionate fans though. One “hit” song or album, a change in image, or a change in general perception, and they become the passionate critical mass needed for the breakout that turns a respected artist into a true star.

In Music 4.1, your most important core audience contains your most passionate fans, or your “tribe.” They’ll buy whatever you have to sell, work for free, recruit other fans, and basically do anything you ask. All they want is access to and communication with the artist, which is the basis of Music 4.1.

In the end, every fanbase has the same characteristics:

  • Your audience consists of your casual fans and your core fans
  • Fans may like an artist but may not be particularly passionate
  • Your core fans (true fans, uber-fans, super fans, tribe) are very passionate about everything you do
  • Most of your energy should be directed towards your core fans

Understanding exactly who makes up your audience will help you grow it.

You can read more from Music 4.1: A Survival Guide For Making Music In The Internet Age and my other books on the excerpt section of bobbyowsinski.com.

September 22, 2016

5 Tips To Get Music Bloggers To Write About Your Music

music bloggersIt used to be that just one good review in a magazine could sell loads of albums. Even a bad review could be really good for business if it was in a publication like Rolling Stone. That’s all changed since magazine reviews have become pretty irrelevant as the music world has moved online. Now its the music blogs like Pitchfork or Stereogum that can make the difference not so much in sales, but visibility to a new audience. Yes, music bloggers are important.

Sometimes those larger blogs are tough to break through, but the smaller bloggers still provide more of a one on one chance to state your case.

But how do you approach music bloggers in the first place? There really is a right and wrong way to do it, so here are 5 tips to get a blogger interested enough in what you’re doing to actually post about it.

1. Read the blog for a while to become familiar with the theme and feel. You can turn the blogger off completely by sending something cold without knowing the backstory of the blog.

2. Make some post comments without any overt marketing. Just try to move the conversation along on a few posts. The idea is for the blogger to recognize you as someone who contributes regularly and adds to the conversation.

3. Only after the blogger becomes familiar with you is it safe to reach out about what you’re doing. If you’re a regular reader and contributor, the blogger is much more likely to read a press release or take a listen to your music.

4. Sometimes asking a question about your project gets a response. While many bloggers are too busy to answer every email, many go out of their way to accommodate a regular reader and contributor. As a result, it’s perfectly okay to follow up after you’ve sent something to the blogger and there’s a good chance he’ll answer.

5. Never hard sell, just inform. Hard sell is a turnoff in general. Don’t do it. It’s okay to state the relevant information, but keep the superlatives like “Best band ever!” out of the equation.

If you want additional tips and tricks about promoting yourself or your music online, check out my Social Media Promotion for Musicians book. You can read excerpts at bobbyowsinski.com.

September 15, 2016

5 Tips For Building Your Email List

email listYour email list is one of the most powerful online tools that an artist can have, but how do you build one if you’re just starting out or you’ve neglected it for too long? Here are 5 tips from my Social Media Promotion For Musicians book that provide an easy roadmap to a larger list.

“Just like with your social media follows and Likes, building your mailing list takes some work. In general it comes down to the following:

1. Trust in your site. If your site or social page makes people uncomfortable in any way, chances are they won’t give you their email address.

2. An incentive of some kind. Generally speaking, people don’t want to give their address out unless they’re get something in return. Don’t think about the fact that you’re getting their email address, think of what’s in it for the fan. He only may care about regular communication, but usually access to something free (a song, ticket, ebook, article) gets better results.

3. Make it easy by not asking for too much information. The more info you ask from a potential subscriber, the greater the chance that he’ll give up while subscribing. Asking for just an email address gets the greatest response, but adding a first name allows you to include a personal greeting.

4. Cross-promote across social media, business cards, banners, and anywhere else you can think of. Anywhere you get a chance to mention your email list, do so.

5. Reminders in your content. Mention your mailing list in any podcasts, blogs, or videos, because sometimes even if it’s right in front of them, a reminder is still needed.

Your email list is extremely powerful for communicating, interacting, and promoting to your fans. Put sufficient time and effort into it and you’ll be richly rewarded.”

By the way, you can join my list over on the right.

You can read more from my Social Media Promotion For Musician’s book and my other books on the excerpt section of bobbyowsinski.com.

How YouTube Views Are Monetized

Many artists and bands think that they’ll automatically make money when their videos are viewed on YouTube, but that’s far from the case. In the last part of my series on streaming royalties and an excerpt from my new How YouTube views are monetizedMusic 4.1 Internet Music Guidebook, you’ll see all of the variables that go into how YouTube views are monetized.

“First of all understand that just because your video is being viewed doesn’t mean that you’re getting paid. Your channel must first be signed up with Google Adsense (who supplies the adverts), then set for monetization, then the monetize option for each video must be selected. It’s only at that point that your videos can begin to be monetized

View Variables

There’s more to it than that though, as with everything involving digital music. The commercial on the pre-roll must be watched all the way through or else it doesn’t count towards monetization. If there’s a banner ad across the bottom of the video, it must be viewed for at least 31 seconds before it counts as a monetized view.

There’s also the fact that YouTube doesn’t sell ads on all of your views. Then some views on mobile devices just don’t register unless the viewer uses an official YouTube app.

Another major factor is the advertiser and the type of ad that’s placed on your video. If your audience happens to like expensive cars, jewelry or clothing, then an advertiser would probably be willing to pay a higher ad rate, which means that each video view would earn more money.

Yet another variable is the time of year the video is viewed, as many advertisers pay more for the holiday season than in January, for instance.

And then there’s the type of ad that’s used on the video or channel. This can vary from a skippable video ad that runs before your video begins (a “pre-roll”), to a transparent overlay add that takes up the bottom portion of your video, to a display ad featured to the right of your video and more. Each pays at a different rate.

That’s why there’s a wide range of payouts that can go anywhere from around $2.50 to $9.00 per thousand views. That means that a monetized video with 1 million views may generate anywhere from $2,500 to $9,000. YouTube takes a 45% cut however, which then puts the income to the copyright holder to between $1,375 and $4,950.

A generally accepted average of what to expect from a million video views is around $1,750, or $0.00175 per view after the split with YouTube, although its also common to see payouts as low as $0.011, or $1,100 per million views.

Don’t forget that if you’re signed to a record label, that this is what the label takes in, and you’re paid at your label royalty rate (15 to 22% of the net amount) minus any recoupable deductions. No wonder why you’re not seeing any YouTube money.”

You can read more from my Music 4.1 Internet Music Guidebook and my other books on the excerpt section of bobbyowsinski.com.

The Different Sources Of Publishing Royalties

Music PublishingRegardless of the era, the songwriter and publisher have made money, and continue to make money in three primary ways:

1. Mechanical royalties are paid whenever a song is digitally downloaded, a song is streamed from an on-demand service, or a physical CD or vinyl record is sold.

2. A performance royalty is paid whenever a song is played on radio, on television, or streamed over the Internet.

3. A synchronization fee is paid when music is used against picture.

This payment mechanism hasn’t really changed all that much in Music 4.1 from previous music eras, although it’s managed to become even more complicated than it was. What has changed is that during this period in which music sales are far less than half of what they were at their peak, publishing is the one area of the music industry that has held its own. How does that happen when sales, and therefore mechanical royalties, are down, you ask?

While it’s true that mechanical royalties are not nearly what they used to be now that CD sales are so low and downloads have decreased, they’re offset by the tremendous increase in performance royalties because music is now played on so many more broadcasts than before. The 500-channel cable and satellite television universe, along with satellite and Internet radio, provides more opportunities for music to be played, and as a result, more performance royalties are generated.

That said, music publishing income is derived from more sources than you think, and while some of it doesn’t appear significant by itself, it can all add up to a nice royalty check. Here’s an excerpt of a chart from the latest edition of my Music 4.1 book that shows a simple breakdown of when publishing royalties occur, how it’s collected, and the royalty rate.

Publishing Royalty Comparisons

As you can see, many of the royalties and fees are variable. Synchronization fees consist of an upfront fee which is usually negotiated by the publisher, and a performance royalty whenever the piece containing the music airs on television.

With a movie, the upfront fee is the only one that’s paid for any showings in the theater, but a performance royalty is paid whenever the movie is played on television afterwards.

Likewise, both printed sheet music and digital use of sheet music or lyrics are subject to negotiation. Ringtones are still a source of income not to be overlooked even though the market for them is far below what it was during their peak.

Publishing royalties come from more places than you think, but the rates are different over a wide range of scenarios, which makes it a very complicated subject.

Making Sense of Streaming Income

iPhone MusicIn Part 3 on my series on streaming music royalties, we try to make sense of streaming income as we look at why it varies so much and why the sales parameters we set in the days of vinyl and CDs no longer apply in the digital age. Once again, this is an excerpt from the latest version of  Music 4.1: A Survival Guide For Making Music In The Internet Age book.

“By now, we’ve all read the horror stories of the artist or songwriter making what seems to be an incredibly small amount of money after millions of streaming plays. What’s more, it seems even more outrageous when you see that the amounts paid look random, with not many of the tiny payments at the same rate.

Hopefully, here’s a way to make sense of those payments based on what was just presented in the previous two sections.

A Million Isn’t What It Used to Be

Back in the days of vinyl, cassettes, CDs, and even downloads, a million was a substantial number that amounted to a lot of money in sales. Today, a million doesn’t mean what it used to, especially when it comes to streaming. In fact, a million streams barely registers on the industry’s radar these days; they begin to take notice at 10 million, and 50 million is considered a minor hit. Major hit records routinely rack up hundreds of millions of streams and views.

That’s why it’s important to keep the “million” figure in perspective when discussing streaming. It’s a good starting place, but not as impressive a number as it once was.

The Sound Recording Royalty

As stated earlier in the chapter, every time a song streams, a royalty is generated for the owner of the sound recording. This is usually the record label, but it can also be a DIY artist without a label.

Sound Recording Rate Variables

Before the royalty is even paid to the artist or label, the royalty rate has lots of variables, some of which we’ve covered already:

  • The type of service (on-demand or webcast)
  • The type of tier (free or paid)
  • US or foreign (where the listener is accessing the song from)
  • Calculation variables

The last two points aren’t frequently brought up in sound recording royalty discussions but are equally as important as the type of service and its tiers. Let’s look at the country variable first.

Each country may have the same tiers, but each may pay at much different royalty rates. This is because many services charge the consumer different rates to subscribe in different countries (usually lower than the United States) because that’s all the market will bear. For instance, an Apple Music subscription costs $9.99 per month in the United States but only $2 (120 rupees) per month in India and $3 (169 rubles) per month in Russia. The royalty rate paid on the sound recording will reflect these lower amounts for streams in those countries.

This is one reason why a million streams for one artist may generate more or less money than another. If most of your streams come from outside the country, chances are your royalty check is a lot lower than an artist with streams mostly from inside the United States.

Another unmentioned variable is that some services calculate their royalties on more than streams. Take Spotify, for example. One of the little known facts about the service is that the artist’s market share is also taken into account when determining the monthly royalty. As a result, an artist with a huge hit effectively gets paid a bonus for her increased market share that month.

The Middleman Factor

It’s been stated before but again frequently overlooked: there’s almost always a middleman between the streaming network and the artist. Most of the time, it’s a record label that’s collecting the revenue and then paying the artist at the royalty rate set forth in their label agreement. For digital royalties, this usually ranges anywhere from 15 to about 22 percent, but you can see how the majority of the income that was generated doesn’t make it to the artist in this case.

This is the same to a lesser degree for the DIY artist. Most services will accept song submissions only from major record labels or large indie labels. As a result, most DIY artists are forced to use an aggregator like TuneCore, CD Baby, or DistroKid.

Some of these aggregators charge a flat fee per song or album for uploading to the various digital services, some charge a yearly fee, and some charge a percentage of the streaming royalty that’s earned. This can be another finger in the pie that the DIY artist isn’t prepared for.

An aggregator provides the convenience of not only distributing your music to multiple services at once but also collecting the money for you as well, but that service does come at a price. If you’re really in a DIY state of mind, consider forming your own label and affiliating with the Merlin Network indie label association (merlinnetwork.org) as a way of submitting to each service separately.”

For more on streaming income, check out Part 1 and Part 2 of this series.

You can read more from Music 4.1: A Survival Guide For Making Music In The Internet Age and my other books on the excerpt section of bobbyowsinski.com.

The Streaming Performance Royalty Rate Explained

Music 4.1 coverStreaming performance royaltiesArtists and songwriters, even some publishers, very often misunderstand how streaming income and royalty rates and payments are determined because it’s a immensely complex subject. One of the things that I’ve done in my new Music 4.1 book is provide an overview of how streaming royalties work and are paid, in many cases following the revenue stream down to the last $0.001. Here’s an except from the book explaining how the streaming performance royalty rate for songwriters is determined, since that’s the area that’s frequently quoted in articles and more often than not blown out of proportion. We’ll also introduce a brand new royalty that only applies to on-demand streaming services like Spotify called the streaming mechanical.

The Performance Royalty

Just like when it’s played over the radio, when a song is streamed, a performance royalty is generated. It’s almost always collected by one of the performing rights organizations (PROs), like ASCAP or BMI, and then distributed to the publishing company and songwriter.

Performance Royalty Rate Variables

There are a staggering number of variables when it comes to the different performance rates paid on a stream because there are a lot of different streaming services, and each has a slightly different way of determining the royalty it must pay. Just this section alone could take up at least several chapters, but because this isn’t a book on publishing, here are some of the situations you should know about where the performance royalty rate might vary, along with a short explanation of each:.

  • On-Demand Nonportable—Subscription services accessible via desktop computers that only play music when a live Internet connection exists.
  • On-Demand Nonportable Mixed Use—Subscription services accessible via desktop computers that can play music whether the computer is online or offline.
  • On-Demand Portable Mixed Use—Subscription services accessible through portable devices, like mobile phones.
  • On-Demand Bundled Subscription—Subscription sold together with another product (like a cellphone) for one price.
  • Free Nonsubscription Ad-Supported Services—Services that offer streaming music to end users for free.
  • Paid Locker Services—Services that provide continuous access for Internet-connected devices to recordings previously purchased by the end user.
  • Purchased Content Locker—Services offered for free to purchasers of permanent digital downloads, ringtones, or physical records from a qualified seller that allows the purchaser access to digital versions of the purchased content from an Internet-connected device.
  • Limited Offering Subscription—Subscription services that offer a very limited catalog of music (like from a particular genre or playlist), or services that offer streams of preprogrammed playlists.
  • Mixed Service Bundle—The sale of downloads, ringtones, locker services, or limited offerings together with nonmusic products (like a cellphone or Internet service) for one price.
  • Music Bundle—The sale of two or more products together for one price, like a CD, digital download, and ringtone.
  • Foreign On-Demand Free Tier—The payment received from a foreign PRO on streams from an on-demand service’s free tier.
  • Foreign On-Demand Subscription Tier—The payment received from a foreign PRO on streams from an on-demand service’s paid tier.
  • Foreign Webcast Free Tier—The payment received from a foreign PRO on streams from a noninteractive service’s free tier.
  • Foreign Webcast Subscription Tier—The payment received from a foreign PRO on streams from a noninteractive service’s paid tier.
  • Satellite Radio—The payment received from SiriusXM streams.
  • Cable Television—The payment received from the music-only channel streams offered by cable television providers.

The average composition royalty rate per stream is around $0.0005, according to Audiam.

In the case of on-demand streaming services like Spotify or Apple Music, there’s an additional royalty generated on the composition called a streaming mechanical.

The Streaming Mechanical Royalty

The streaming mechanical royalty is relatively new and was created on the premise that on-demand streaming closely resembles a permanent download because the user has such a high level of control.

When the Copyright Rate Board ruled in 2008, it mandated that the streaming mechanical rate would be around 21 percent of what’s paid to the record label for the sound recording if paid directly to the publisher, or around 18 percent if paid to the record label (depending on a set of variables too deep to get into here). That means that the average streaming mechanical rate per stream is somewhere around $0.0067, according to the digital music accounting firm Audiam. As a general rule, the owners of a sound recording often end up with five or six times more revenue than the owner of the musical composition on a particular song stream.

As you can see, there’s a huge number of variables when it comes to royalty rates paid to songwriters, and they each pay at a slightly different rate. That’s why whenever you read a figure about how much a stream pays you have to remember that it’s usually an average, and might not apply to your particular situation. Remember, we’re talking royalties only paid to songwriters here, and not to artists, which is a separate subject. In the coming weeks, we’ll look at other aspects of online streaming royalties that you probably won’t see anywhere else.

You can read more from Music 4.1: A Survival Guide For Making Music In The Internet Age and my other books on the excerpt section of bobbyowsinski.com.

(Photo: courtesy of PDPics.com)

A Streaming Music Royalty Primer

Music 4.1 coverStreaming music royalty rates are such a morass of different percentages and possibilities that few people on the planet totally understand everything, and the ones who do are attorneys working in that narrow end of the music business. Even label and publishing execs who have been in the business for 20 or more years can be confused. That’s one reason artists and songwriters frequently cite low rates on what seem to be a large number of streams. It’s also why an average royalty rate is used in articles about this side of the business. Here’s an excerpt from my new Music 4.1 book that tries to clarify some of the misunderstandings by starting with the streaming royalty basics.

“Let’s see if we can at least make sense of why it’s frequently impossible to determine what an exact streaming royalty rate is.

First of all, there are two basic variables to remember that everything streaming works from:

1. There are two kinds of streams—noninteractive or webcast (Pandora), and interactive or on-demand (Spotify). On-demand pays more because it generates more money.

2. There are two tiers for each stream—premium (paid subscribers) and freemium (ad supported). The paid tier generates a higher revenue per subscriber than the free, ad-supported tier.

With this in mind, there are two different copyrights for each stream (the same as for a CD, vinyl record, or download), regardless of the tier, which provide a royalty stream:

1. A sound recording royalty (that the owner of the sound recording gets)

2. A composition royalty (that the publisher and songwriter get)

You can think of the sound recording as what you hear played on Pandora or Spotify (or a CD, vinyl, or download for that matter), while the composition is the notes and lyrics on paper.

Within those parameters there are a tremendous number of variables that can occur, all of which affect both the payout for the sound recording and the composition. Let’s explore the different types of streams first.

The Different Types of Streams

What most artists and bands don’t realize is that there are two types of streaming services, and they each operate differently and therefore pay at a different rate.

Noninteractive Streams

The first type of streaming is called a noninteractive or webcast stream and comes from either a platform that acts as an online radio station, like iHeart Radio or any traditional broadcaster with an online presence (like your local radio station), or a service like Pandora where the user has a certain amount of control over what plays but can’t directly select a song or make it repeat. Streaming platforms in this category include services like Pandora and Last.FM. SiriusXM and the music channels on cable television also fit into this category.

All noninteractive streaming services must obtain a congressionally created “compulsory” license with the rate set by an entity called the Copyright Royalty Board (CRB), which I write about in more depth later in the “How Royalty Rates Are Set” section. The CRB recently set the rates for 2016 and beyond for radio broadcasters with terrestrial radio stations at $0.0022 ) per stream. Noninteractive platforms like Pandora pay $0.0022 per stream from a paid subscriber and $0.0017 per stream on the free tier.

Interactive Streams

Interactive or on-demand streams are treated differently from the radio-style streams in that the rate is considerably higher (between $0.005 and $0.009, depending on how much the listener pays per month, among other factors). Services that provide interactive streaming include Spotify, Google Play, Tidal, Apple Music, and Slacker.

The down side here is that if you’re signed to a label, money from interactive streams is paid directly to them. You’ll then be paid by the label based on the royalty amount negotiated in your agreement with them. For instance, if you negotiated a 15 percent royalty rate, then you’ll be paid 15 percent of $0.005 (using that number as an average), or $0.00075 per stream.

If you’re not with a label, the money will be collected by SoundExchange or an aggregator like TuneCore, Ditto Music, or CD Baby if they distributed your songs to the online streaming services.

Average Streaming Type Royalty Paid

Interactive On-demand – $0.005 to $0.009 (average depending upon the tier)

Commercial Broadcasters – $0.0022

Noninteractive – $0.0022 (paid tier) $0.0017 (free tier)

On top of the royalty paid to the artist and label, there’s also a publishing royalty that varies yet again from the above rates, which we’ll cover in the next section.

You can see why artists, bands, musicians and even record labels can be confused about how much they’re receiving from streaming. As The Temptations once sang, it’s a “ball of confusion.”

This is just the tip of the iceberg when it comes to revenue splits and royalty payments from streaming music. It also doesn’t cover the publishing side of streaming, which is another issue entirely. That said, in the coming weeks I’ll go beyond the basics to explain more about how each streaming music royalty actually works.

You can read more from Music 4.1: A Survival Guide To Making Music In The Internet Age and my other books on the excerpt section of bobbyowsinski.com.