Record or Distribution Deals
How songs are sold in the music industry changes weekly. It's a high-risk, hi-reward business for a small number of very talented artists. How do you "monetize" your music? For an excellent introduction into "music business affairs" and contracts, please read Musicians and the Law in Canada by Paul Sanderson, LL.B. (Carswell Publishing).
Exceptions are rare, but major and indie labels in Canada rarely "advance" money for recording, touring or promotion to develop an emerging artist. For those artists new to the game, the 3 or 4 major labels are essentially "distributers" of digital and retail product, with 80% of their "distributed by" product from outside of Canada.
Even indie labels prefer artists with a finished product (CD) of original songs, a proven record of radio airplay and live performances, a website, a video on Youtube...that's entry level. Most of all, they want the opportunity to see a live performance. Can you connect with the audience? After all, the real money is still in live touring. But how do you get to that level?
Step One is get a hit on radio or the Internet.
Step Two is traditionally a professionally produced CD of original songs, say $10-30,000. Consider that your "business card" when shopping for a record deal. Even without a distribution deal, that's one way to monetize your music by selling CD's at live gigs! No, the labels won't pay for that.
|
The Alternative. Rather than follow the traditional path of distribution deals, if you have a new way to monetize your music, perhaps MSI can help you. Considering the decline of CD sales, recording one tune at a time for radio airplay may be the most effective option.
|
How to Monetize Your Music?
With illegal downloading, some critics say music is free. Although global sales are down and Canadian CD sales declined 6.7% in 2009, Canadians purchased 30.3 million physical units and 4.8 million digital albums. Total digital tracks sales increased 38% to 56.3 million units. SOCAN royalties to songwriters average $40 million.
In 2009, the best-selling album in Canada was Susan Boyle's "I Dreamed A Dream" at 319,000 units. The highest-selling Canadian album was Michael Buble's "Crazy Love", which was the fourth best-selling album.
And 60% of Canadians listen to music from radio or CD's. One-third of all music listened to is by Canuks, 60% of Canadians attend live performances.
As Keith Urban said while accepting the 2009 People's Choice Award, "I don't care if you download my music illegally, just keep coming to see me live." His concerts average $1M gross.
|
|