Pop’s old metrics don’t matter.

 

 

I came across some very important numbers for what’s currently going on in music sales and income for artists from the New Yorker magazine. First and foremost, what strikes me is evidence against the day of selling whole albums. I’ve been telling clients and friends for nearly 10 years that since people can download a single song the single will once again rule as it did when vinyl was pressed. Another trend I see–which only gets a nod but impresses me as important–are remixes. I am seeing these mostly popularized by nightclub/DJ culture.

 

I’ve only posted some of the text from the New Yorker. Click on links to see infographics or more information. Take a look at each point and let me know your thoughts. It’s not intended to be frightening but it should make each more aware of how to focus our resources to be financially successful. And please don’t leave without sharing a comment. Thanks!

1. The Incredible Shrinking No. 1 Album

The record for the lowest-selling No. 1 albums in the SoundScan era (since 1991) was broken three times in early 2011. Before that, it was broken only three times in sixteen years. See more.

 

2. Who’s Playing the Garden?

Gone are the days when only stadium acts like Radiohead and Pearl Jam sold out 20,000-seat Madison Square Garden. See more.

 

3. The Monopoly at the Top

Since 2008, there have been 66 No. 1 songs, and six artists are behind almost half of them. (In 1986, there were 31 No. 1 songs by 29 different people).

Rihanna, 9 No. 1 songs
Katy Perry, 7 No. 1 songs
The Black Eyed Peas, 3 No. 1 songs
Flo Rida, 3 No. 1 songs
Adele, 3 No. 1 songs
Lady Gaga, 3 No. 1 songs
See more.

 

4. Who’s Making What?

Here’s what three hypothetical artists of different sizes might be pulling down for each album they make, based on musician interviews and industry gossip. All numbers are hypotheticals based on industry research and interviews. Each record company makes specific and unique arrangements with artists and music distributors.

 

The DIY Band

Five unknowns with a borrowed station wagon. Record an album every five years.

Revenue
Breakdown
Quantity
Total
CD sales $8 per CD (after production costs) 500 $4,000
iTunes and other downloading services $.65 per $.99 download (after service takes a cut) 200 $130
Spotify and other streaming services About $0.005 per stream 200 $1
Merch $100 per show (twelve T-shirts at $10 each, after printing costs) 45 shows $4,500
Tour $50 per night (Plus free beer, maybe) 45 shows $2,250
$10,881 (Or about $435 per member per year)

 

The Indie Four-Piece

Beloved by Pitchfork and signed to a small label. Record a new album every three years.

Revenue
Breakdown
Quantity
Total
CD sales $2 per CD (after the record label and others take a cut) 125,000 $250,000
iTunes and other digital downloads $.25 per $.99 download (after the service, label, and others take a cut) 125,000 $31,250
Spotify and other streaming services About $0.005 per stream 20,000 $100
Commercial licensing $100,000 for placement in a cell-phone commercial 1 $100,000
Film licensing $5,000 to soundtrack an indie movie 1 $5,000
TV licensing $10,000 to soundtrack a teen cable drama 1 $10,000
Merch $4,000 per show (250 T-shirts at $20 each, less printing costs) 30 shows $120,000
Tour $15,000 per show (2,000 tickets at $30 apiece, less touring expenses) 30 shows $450,000
$966,350 (Or about $126K per member per year)

 

The Major-Label Act

Solo artist bigger than Beyoncé. Releases an album every two years (with remixed deluxe editions in between).

Revenue
Breakdown
Quantity
Total
CD Sales $2 per CD (after the label takes a cut) 4 million $8,000,000
iTunes and other digital downloads $.25 per $1.29 download (after the service, label, and others take a cut) 5 million $1,250,000
Spotify and other streaming services About $0.005 per stream 130 million $650,000
Radio royalties $800,000 per single 2 $1,600,000
Commercial $300,000 for placement in a beer ad 1 $300,000
Film licensing $20,000 to soundtrack a summer blockbuster 1 $20,000
TV licensing $50,000 to soundtrack a network crime procedural 1 $50,000
Merch $300,000 (many many T-shirts in a 20,000-venue) 20 shows $6,000,000
Tour $600,000 per show (Selling out arenas) 20 shows $12,000,000
Endorsements $3,000,000 for zit cream commercials 1 $3,000,000
$32,870,000

 

To see points 5-7, including how Adele’s sales measured up against other artists— and entire genres—in 2011 click here to read the New Yorker’s post.

 

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So what do you think? Post your comments below!