The Industry or Inexperience: What is to Blame?

In our new, tech-heavy world, with great empowerment comes great responsibility.

It is no surprise the "elites" have a disproportionate influence over many industries. The Music Industry has never been immune...

Record labels have been known to be the biggest profiteers of the space and have a great impact on the music that makes it mainstream. Productions with massive budgets from the recording to the marketing processes ensure visibility to the masses. However, with the development of many new digital mediums, it is more and more possible for the average songwriter to be heard.

Technology has reduced the requirement of the recording studios of the past to produce quality results, which was normally out of reach for many. This has led to more and more music creators to maintain ownership over the works they create which they would normally sign away in the infamous 360 deals the "majors" would employ.

The labels are feeling the pressure: record labels' roles have been greatly reduced, and only 3 "major" labels persist!

Why then are so many independents struggling?

For many artists, the production process is the main focus. A song can take years to find manifestation in a recording, and even longer to be finalized in mixing and mastering, and finally in publishing. The journey to publication can exhaust artists of a specific work and make them eager to begin the next hit song. However, the work has just began for those who wish to monetize their works.

A general, yet incomplete, map of revenue generated from a song

Musical works have the potential of being monetized via many avenues, such as royalties generated from streaming, performing, synch licensing, mechanical licensing, physical/digital and others. However, those who do not take the necessary steps to access these paths to income are cut out of them, and in many cases, the agencies in charge of collecting these revenue sources end up with the pie!

It is understandable that artists do not want to deal with the logistics and bureaucracy of the business side of music, especially considering the complex ecosystem. However, failing to navigate this system can result in significant lost income. Like taking candy from a baby... The Kids are Wising Up...

While it's possible for artists to manage all aspects of their music rights individually, this can be a time-consuming and complex process. This is where music publishers can play a crucial role.

Publishers act as intermediaries between artists and the various agencies responsible for collecting royalties. They can:

1. Register works with Performing Rights Organizations (PROs)

   
   

2. Handle mechanical licensing through the Mechanical Licensing Collective (MLC) or Harry Fox Agency (HFA)

   
   

3. Pursue sync licensing opportunities

   
   

4. Ensure proper registration with SoundExchange for digital performance royalties

By partnering with a publisher, artists can streamline the administrative process, allowing them to focus more on creating music while still ensuring they're tapping into all potential revenue streams. This can be particularly valuable for managing back catalogs, potentially creating perpetual income streams from past releases.

The Blockchain Revolution

The advent of blockchain technology is creating a new ecosystem that promises more control for artists over their work and earnings. Blockchain can potentially address several long-standing issues in the music industry:

1. Transparency: Blockchain can provide a clear, immutable record of rights ownership and usage.

   
   

2. Smart Contracts: Automated, self-executing contracts can ensure immediate and accurate royalty payments.

   
   

3. Disintermediation: Blockchain could potentially reduce the need for some intermediaries, allowing for more direct artist-to-fan transactions.

   
   

4. Micropayments: Blockchain can facilitate small, near-instantaneous payments, making per-stream payouts more feasible.

   
   

While blockchain presents exciting possibilities, it's important to note that this technology is still in its early stages in the music industry. Artists should view blockchain as a complement to, rather than a replacement for, traditional revenue streams.

Maximizing Earning Potential

To truly maximize earning potential, artists should consider a hybrid approach:

1. Utilize publishers or rights management services to ensure proper registration and collection from traditional revenue streams (PROs, MLC, SoundExchange, etc.).

   
   

2. Explore blockchain-based platforms for direct fan engagement, NFT sales, and potentially more transparent royalty collection.

   
   

3. Maintain control over master recordings and publishing rights when possible, to keep options open as the industry evolves.

   
   

4. Regularly audit and update registrations to ensure all works are properly documented and monetized.

   
   

By combining the established infrastructure of traditional music industry agencies with the emerging possibilities of blockchain technology, artists can create a robust strategy for monetizing their work. This approach not only maximizes current earning potential but also positions artists to benefit from future developments in music distribution and rights management.

In the digital age, your music can generate income from unexpected places long after its initial release. By staying informed and proactive about both traditional and emerging revenue streams, you can build a sustainable career in music while focusing on what you love – creating art.