Music Streaming- Many musicians are moving to music streaming and selling their music to Spotify and pandora rather than selling their music straight to their fans. There are many factors that go into musicians’ profits from streaming so many small artists may not make much but in turn it may be an opportunity for new fans to discover their music.
Movie and TV licensing- Whenever a song is a movie, TV show, documentary, video game, or commercial, a licensing fee is paid to the songwriters/composers. These fees vary greatly in terms of factors like how bad they want the music or how large the budget of the production is.
T-shirts and merchandise- Money made from t-shirts and other merchandise depends greatly on the amount of live shows. These items can be overpriced and fans will still pay for them. Teen-focused pop stars make the most in this category because parents will pay anything so their kid gets a shirt with their idol on it. Major rock bands also make a great amount of sales for their classic merchandise that many still love.
Fashion lines- Some pop stars have used their fame to promote their new fashion lines. They use their fans’ love for their music to try to sell their clothes and this can bring in a very large profit. Jessica Simpson for example made $15 million in a licensing deal to market her name on a fashion line. This is usually only reserved for female pop stars but it is a possibility for any upcoming artist to eventually make large profits from this.
Perfume- Many big pop stars have licensed their name to perfumes like Justin Bieber and Beyonce. Some can make over $5 million upfront from these licensing.
Youtube- Many new musicians post cover songs and songs of their own on their youtube channels. If they get enough views, they can make up to $1,500 per million views. SOme musicians can make even more if they sign to do sponsors in their videos. This is also a great way for new musicians to gain popularity and actually sign with a major record label.
Songwriting/composing- Some musicians write songs for other musicians or compose music made specifically for a T.V. show or movie. They will receive royalties on the song they write so depending on how popular the song is they will make an appropriate amount of money.
Instant concert recording- Some bands such as Phish or Red Hot Chili Peppers have recorded their concerts and sold them at the merchandise stand so fans can buy a recording of the performance they just saw on their way out. It is a great way to make some extra cash from fans who really want to remember a great concert.
Sponsorships- Once a musician has enough fans, sponsors will want them to be an image for them to sell their product to their fan. By using or supporting their product, sponsors will give musicians money and free service or gear.
Vinyl Sales- Vinyl records have become more popular in the last couple years as people want a physical copy of their favorite album and a nostalgic memento of the old days in music. Sales have increased by 30% in 2013. Musicians can sell them easily at their merchandise stand at their concerts and make a good extra batch of dough.
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