Tag Archives for " Music 4.1 "
Every 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:
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.
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 Music 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
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.
Regardless 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.
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.
We’ve gone through a mighty change in the music business over the last 10 years, and it keeps on morphing and evolving every day. Since these changes are constant, many of the old school rules pertaining to success in the music business no longer apply.
Here’s an excerpt from the latest edition of my Music 4.0 book that outlines some of the new rules for success, as well as a few that may never change.
1. It’s all about scale. It’s not the sales, it’s the number of YouTube views (at least at the moment) you have. A hit that sells only 50,000 combined units (album and single) may have 50 million YouTube views. Once upon a time, a sales number like that would’ve been deemed a failure, today, it’s a success. Views don’t equal sales, and vice-versa.
2. There will be fewer digital distributors in the future. It’s an expensive business to get into and maintain, so in the near future there will be a shakeout that will leave far fewer digital competitors. Don’t be shocked when you wake up one day to find a few gone.
3. It’s all about what you can do for other people. Promoters, agents, and club owners are dying to book you if they know you’ll make them money. Record labels (especially the majors) are dying to sign you if you have have an audience they can sell to. Managers will want to sign you if you have a line around the block waiting to see you. If you can’t do any of the above, your chances of success decrease substantially.
4. Money often comes late. It may not seem like it, but success is slow. You grow your audience one fan at a time. The longer it takes, the more likely the longer the career you’ll have. An overnight sensation usually means you’ll also be forgotten overnight. This is one thing that hasn’t changed much through the years.
5. Major labels want radio hits. They want an easy sell, so unless you create music that can get on radio immediately, a major label won’t be interested. This is what they do and they do it well, so if that’s your goal, you must give them what they want.
6. You must create on a regular basis. Fans have a very short attention span and need to be fed with new material constantly in order to stay at the forefront of their minds. What should you create? Anything and everything, from new original tunes to cover tunes, to electric versions to acoustic versions, to remixes to outtakes, to behind the scenes videos to lyric videos, and more. You may create it all at once, but release it on a consistent basis so you always have some fresh content available.
7. YouTube is the new radio (but it may include Facebook soon). Nurture your following there and release on a consistent basis (see above). It’s where the people you want to reach are discovering new music.
8. Growing your audience organically is best. Don’t expect your friends and family to spread the word, as they don’t count. If you can’t find an audience on your own merits, there’s something wrong with your music or your presentation. Find the problem, fix it, and try it again. The trick is finding that audience.
9. First and foremost, it all starts with the song. If you can’t write a great song that appeals to even a small audience, none of the other things in this book matter much.
Finally, remember that making a living is the new success. Superstardom is more difficult to come by than ever, and the artistic middle class continues to shrink. Today, if you can make your living strictly from making music, you’ve accomplished a lot and have a lot to be proud of.
You can read more from my Music 4.1: A Survival Guide For Making Music In The Internet Age and my other books on the excerpt section of bobbyowsinski.com.