Hot Data, Cool Trends

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1 Hot Data, Cool Trends 3 Million Stories Conference! Jean Cook, Future of Music

2 Why Artist Revenue Streams?!

3 most data policymakers see about health of music industry is based on record sales The Data Hole

4 radio fans! radio station! advertiser! crowdfunding! grant! online fans! music services! ASCAP, BMI, SESAC! SoundExchange! ad-supported video! label/aggregator! publisher! fan club! TV appearance! unions! guest artist! on someone! else s! recording! advertiser! label/aggregator! publisher! movie soundtrack! ASCAP, BMI, SESAC! speaking! engagements! students! guitar! endorsement! promoter! booking agent! live fans!

5 overwhelming anecdotal evidence = pervasive industry myths The Data Hole

6 commercial and non-commercial sectors seldom mix, especially when it comes to data The Data Hole

7 The Artist Revenue Streams Data Set!

8 radio fans! radio station! advertiser! crowdfunding! grant! online fans! music services! ASCAP, BMI, SESAC! SoundExchange! ad-supported video! label/aggregator! publisher! fan club! TV appearance! unions! guest artist! on someone! else s! recording! advertiser! label/aggregator! publisher! movie soundtrack! ASCAP, BMI, SESAC! speaking! engagements! students! guitar! endorsement! promoter! booking agent! live fans!

9 Composing Income Publishing Advance Mechanical Royalties Composition Commission Public Performance Royalties Broadcast Commission Synch Licenses Sheet Music Sales Ringtones ASCAPlus Publishing Settlement Performance Income Salaries Live Performance Fees The 42 Revenue Streams! Recording Income Label Advance Label Support Retail Sales Digital Sales Sales at Shows DPR AARC Background income AFM Secondary Markets SR Special Payments AFTRA Contingent Payments Label Settlements Session Studio Session Live AFM/AFTRA Fund

10 The 42 Revenue Streams! Brand Related Speaking Fees Merch Sales Fan Club YouTube Partnership Program Ad Revenue Persona Licensing Product Endorsements Sponsorship Acting Knowledge of Craft Teaching Producer Patronage Fan Funding Grants Other Income Administrator

11 Who did we talk to? Band/artist with a lot of merch Songwriter who does not record, perform or tour (classical) Player in major orchestra Player in member-directed orchestra Freelance classical musician Classical soloist Freelance non classical studio musician Freelance non classical touring musician Band/artist on an indie label Film/TV composer Chamber music group Jazz player and composer Band/artist on major label Self releasing work Jazz player who plays existing compositions Hip-hop music who composes own work, including samples Nashville songwriter Musician who has been heavily sampled Band/artist that gets played on commercial radio

12 Additional Data Collected! Professional Information Memberships # songwriting or recording credits # bands Genre of music Support team information Technologies used Roles played Label or publisher relationship Airplay Amount of time spent on music Attitudes Impact of Technology Comfort with Technology How would you rather spend your time? Demographic Age Gender Race Education Location

13 Data from ARS Over 5,300 US-based musicians, performers and composers completed the survey Over 81 in depth personal interviews with artists from every corner of the industry 5 anonymous financial case studies reviewing income and expenses for real musicians

14 How Much Are US Musicians Making?!

15 Average Estimated! Music Income!$34,455! Personal gross income x % of income derived from music! Bureau of Labor Statistics, per capita personal income for US, 2010: $39,945

16 Time spent vs. income earned 1,736 respondents (32.3%) are: spending 36+ hours a week doing music + deriving 75% or more of income from music 32% were full time artists

17 Time spent vs. income earned Average estimated music income (EMI) Full time musicians (N=1736) $61,410 All others (N=3635) $20,563 full time artists earned 4x income as non-full time

18 Estimated Music Income # Hours Spent on Music = Hourly Wage

19 Gross Annual EMI by Hours Worked $70,000 Jazz (N=812) Classical (N=1777) Other - Country, Folk, Rock, Urban, etc (N=2424) Data from Artist Revenue Streams May money.futureofmusic.org Gross Estimated Music Income $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 Est Classical Wage = $26.42/hr Est Other Wage = $21.46/hr Est Jazz Wage = $20.84/hr Jazz musicians appear to have lower effective hourly wages than other genres $0 None 1-5 hours 6-10 hours hours hours hours hours hours hours hours hours hours hours 61+ hours Number of Hours Spent on Music Each Week

20 Revenue Streams Data!

21 Percent of income derived from this revenue stream in past 12 months Distribution of income differed significantly by genre

22 Average Jazz Musician Income by Revenue Category Average Income Teaching $10,551 Touring/shows/live performances fees earned by me as a solo performer, or by the bands/ensembles I'm officially a member of $9,141 Salary as an employee of a symphony, band or ensemble $3,361 Session musician earnings, including payment for work in recording studio or for live performances, freelance work $3,256 Other $1,455 Money from songwriting/composing including publisher advances, mechanical royalties, ASCAP/BMI/SESAC royalties, commissions, composing jingles and soundtracks, synch licensing, ringtone licensing, sheet music sales Money from sound recordings including sales of physical or digital recordings (itunes, CD Baby, traditional retail, sales at shows), payments from interactive services (Rhapsody, Spotify), SoundExchange royalties, master use licensing for synchs or ringtones $1,454 $1,134 Merchandise sales t-shirts, posters, etc. $169 $30,521

23 Other Sources of Music Income in past 12 months In addition to the 8 major categories, we also asked about other related income streams

24 Estimated Music Income Compared to Gross Income for Jazz Musicians (AFM vs Non-AFM) Data from Artist Revenue Streams May money.futureofmusic.org Music Income - AFM (N=422) Gross Income AFM (N=424) Music Income - Non-AFM (N=390) Gross Income Non-AFM Gross (N=393) Gross Estimated Music Income + Gross Income (Annual) $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 Filter: Jazz, Age, Music and Gross Income, AFM Membership $0 18 to to to to to to to to to to to or older Respondents by Age Group

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