Musician Digital Royalties PUBLIC 2013
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outletartist typeformatRetail priceRetailer CutArtist CutLabel CutRetailer REvenueArtist RevenueLabel RevenueTo earn min wage: solo musicianPublisherSongwriterchecksumSQRTTo earn min wage: solo musician who also wrote songsRecord LabelArtistRecord LabelROYALTIESrecordingsongwritingSALES
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US minimum wage: approx. $1,260 (40-hour week at Federal Wage baseline 2013 of $7.25 / hour, varies by state)content provider / outlet / store cutsales / plays per monthpublisher cutwhat they get per sale / playsongwriter cutwhat they get per sale / playsales / plays per monthperformance royalty cut i.e. record label; artist; supportingartist performance royalty cutlabel performance royalty cut$ paid per play/stream for total royalties$ paid per play/stream for performance royalties$ paid per play/stream for mechanical royaltiessolo - sales needed to make $100solo - sales/plays needed to earn minimum yearly wageband – sales/plays needed per month to earn minimum wageband – sales/plays needed per year to earn minimum wagemonthly subscriptionyearly subscription# streams a monthly subscription pays for# streams a yearly subscription pays fornotelink 1link 2link 3link 4link 5
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$%%%$$$$1,260.00$$$1,260.00% of retail price% of performance royalties% of performance royalties$, paid by content provider$, paid by content provider$, paid by content provider$15,121.434 members4 members$$
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self-pressed CD albumindependentAlbum CD$9.990100%00 $-$9.99126n/an/a11126-100%-n/an/an/a101,5145056,054----
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CD BabyindependentAlbum CD$9.9940%--$4.00$5.99210n/an/a14210---n/an/an/a172,52384110,090----$49 one-off fee to CD Baby per album; revenue = chosen purchase price (for comparison set at $9.99 here) minus $4 which goes to CD Babyhttp://members.cdbaby.com/cd-baby-cost.aspx
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retail album CD (high end royalty deal)with record label & publishing companyAlbum CD$9.99----$1.001,2610.00460.0046361,256-10%<< of performance royalties not revenuen/an/a0.009110015,1375,04560,541----Every contract is different, but the average high-end royalty deal with a record company will pay musicians $1 for every $10 retail album sale. http://www.investinganswers.com/personal-finance/rich-famous/who-really-profits-your-itunes-downloads-3818
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retail album CD (low end royalty deal)with record label & publishing companyAlbum CD$9.99----$0.304,2040.00460.0046654,141-3%<< of performance royalties not revenuen/an/a0.009133450,45516,817201,802----A low-end royalty deal with a record company will pay musicians 30 cents for every $10 retail album salehttp://www.investinganswers.com/personal-finance/rich-famous/who-really-profits-your-itunes-downloads-3818
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Amazonwith record label & publishing companySingle download$0.8930%11.2%58.8%$0.52$0.27$0.1012,640publishing money in US is fixed at $0.0091 per download (~half of which goes to songwriter). with a signed artist, would be passed on to publishers via record label0.00460.0046100%11212,08970%16%-n/an/a0.00911,003151,70050,562606,742----anecdotal evidence suggests both iTunes & Amazon use a 30/70 split. Assuming label/artist split of 84/16% based on Rolling Stones industry estimate (2011)http://music-download-review.toptenreviews.com/http://www.digitalmusicnews.com/stories/091311artistmakeshttp://www.quora.com/iTunes/How-much-does-an-independent-artist-make-on-a-0-99-iTunes-track-salehttp://www.rollingstone.com/music/news/the-new-economics-of-the-music-industry-20111025?page=2http://www.digitaltrends.com/music/how-much-are-next-gen-music-services-really-paying-artists/
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Google Play single trackwith record label & publishing companySingle track download$1.0030%16%53.09%$0.53$0.30$0.1111,3980.00460.004610710,94869%16%-$0.70$0.690.0091905136,79145,593547,112----70/30 split. Assuming label/artist split of 84/16% based on Rolling Stones industry estimate (2011)http://www.refinery29.com/music-onlinehttps://support.google.com/googleplay/artists/answer/1704471?hl=en-GBhttp://www.rollingstone.com/music/news/the-new-economics-of-the-music-industry-20111025?page=2
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Xbox Music via Tunecorewith record label & publishing companySingle track download-----$0.1111,4890.00460.004610710,948-16%-$0.70$0.690.0091905136,79145,954551,450----Assuming label/artist split of 84/16% based on Rolling Stones industry estimate (2011). $9.99 annual fee to TuneCore for Single Distribution.http://help.tunecore.com/app/answers/detail/a_id/50/~/xbox-music%3A-description,-go-live-time,-territories,-how-they-sell-your-music,http://www.rollingstone.com/music/news/the-new-economics-of-the-music-industry-20111025?page=2http://www.tunecore.com/index/pricing
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iTuneswith record label & publishing companySingle track download$0.9930%16%54%$0.55$0.30$0.1111,3640.00460.004610710,91670%16%-n/an/a0.0091902136,37745,455545,455----anecdotal evidence suggests both iTunes & Amazon use a 30/70 split. Assuming label/artist split of 84/16% based on Rolling Stones industry estimate (2011)http://music-download-review.toptenreviews.com/http://www.digitalmusicnews.com/stories/091311artistmakeshttp://www.quora.com/iTunes/How-much-does-an-independent-artist-make-on-a-0-99-iTunes-track-salehttp://www.rollingstone.com/music/news/the-new-economics-of-the-music-industry-20111025?page=2http://blog.tunecore.com/2013/02/music-download-streaming-royalties-are-you-getting-your-fair-share.html
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iTunes via CD Baby independentSingle track download$0.9930%100%--$0.29$0.991,286n/an/a361,28670%100%-n/an/an/a10115,2745,14361,719----anecdotal evidence suggests both iTunes & Amazon use a 30/70 split. Calc factors in one-off cost of using CD Baby to sell a single ($12.95)http://members.cdbaby.com/cd-baby-cost.aspxhttp://www.digitalmusicnews.com/stories/091311artistmakeshttp://www.quora.com/iTunes/How-much-does-an-independent-artist-make-on-a-0-99-iTunes-track-sale
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iTunes via TuneCoreindependentSingle track download$0.9930%--$0.29$0.691,8330.00460.0046431,806-100%n/a$0.693$0.68390.009114421,8207,33087,965----$9.99 annual fee to TuneCore for Single Distributionhttp://blog.tunecore.com/2013/02/music-download-streaming-royalties-are-you-getting-your-fair-share.htmlhttp://www.tunecore.com/index/pricing
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iTunes via ReverbNationindependentSingle track download$0.99----$0.701,8500.00460.0046431,788-100%n/a$0.70$0.69090.009114321,6027,40088,797----Tracks are usually sold for $.99. With an essentials package costing $34.95 p/yearhttp://www.reverbnation.com/c/artist/distro_faq#b3
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iTuneswith record label & publishing companyAlbum download$9.9930%--$3.00$1.121,1260.00460.0046341,12270%16%-n/an/a0.00918913,5154,50554,054----anecdotal evidence suggests both iTunes & Amazon use a 30/70 split. Assuming label/artist split of 84/16% based on Rolling Stones industry estimate (2011)http://music-download-review.toptenreviews.com/itunes-review.htmlhttp://www.digitalmusicnews.com/stories/091311artistmakeshttp://www.quora.com/iTunes/How-much-does-an-independent-artist-make-on-a-0-99-iTunes-track-salehttp://www.rollingstone.com/music/news/the-new-economics-of-the-music-industry-20111025?page=2
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iTunes via ReverbNationindependentAlbum download$9.99----$7.001850.00460.004614180-100%n/a$7.00$6.99090.0091142,1607408,880----Full length releases are sold for $9.99. With an essentials package costing $34.95 p/yearhttp://www.reverbnation.com/c/artist/distro_faq#b3
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CD BabyindependentAlbum download$9.999%--$0.90$9.99126n/an/a1112691%100%-n/an/an/a101,5145056,054----http://members.cdbaby.com/retail.aspxhttp://www.cdbaby.com/top
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TuneCoreindependentAlbum download$9.990%--$0.00$9.981310.00460.004611126-100%n/a$9.99$9.980.0091101,5155256,300----$49.99 annual fee to TuneCore for Album distributionhttp://www.tunecore.com/index/pricing
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BandcampindependentAlbum download$6.7315%--$1.01$5.72220n/an/a1522085%100%-n/an/an/a172,64388110,573----http://www.digitaltrends.com/music/how-much-are-next-gen-music-services-really-paying-artists/
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iTunes Radio via SoundExchangewith record label & publishing companyStream (Non-Interactive)n/a--$0.07-$0.0718,9470.00460.004613817,734-48%50%0.1400.140-0.00911,504227,39075,789909,474----Apple iTunes radio offers terms of 0.14 cents per listen; plus 19 percent of associated ad revenue (not included)http://evolver.fm/2013/06/27/report-apple-itunes-radio-offers-higher-royalties-than-pandora/
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Pandora via SoundExchangewith record label & publishing companyStream (Non-Interactive)n/a--$0.06-$0.0523,0950.00460.004615221,31888%48%50%0.130-0.00911,833277,17292,3821,108,583$3.99$47.88313685% royalties to SoundExchange & 95% to record label/artist; 2013 Pandora pays $0.13 per stream.http://www.theverge.com/2013/6/25/4460804/pandora-and-musicians-meet-to-discuss-royalty-settlementhttp://www.digitaltrends.com/music/how-do-music-royalties-work-and-why-does-everyone-complain/http://www.refinery29.com/music-online
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Sirius XM with record label & publishing companyStream (Non-Interactive) - Subscriptionn/a----0.2881444,3730.00460.0046664,305n/a16%-$1.81$1.800.009134752,47917,491209,895$14.49---Pays royalties in relation to subscription fees (In effect consumer pays royalties directly). Jan 2013 rate for royalty fee is 12.5%, or $1.81 for a 14.49 monthly subscription. Assuming label/artist split of 84/16% based on Rolling Stones industry estimate (2011)http://www.siriusxm.com/usmusicroyaltyhttp://www.rollingstone.com/music/news/the-new-economics-of-the-music-industry-20111025?page=2
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Last fmwith record label & publishing companyStream (Non-Interactive) - Subscriptionn/a----0.0000815,750,0000.00460.00463,969272,138n/a16%-0.00960.00050.00911,250,000189,017,85763,000,000756,000,000$3.00$366,00072,000Payment = a per minima amount of US $0.0005 for each complete playback to an end user on the Last.fm subscription radio service. Assuming this is performance royalties only because mechanical royalties addressed separately by Last fm. Assuming label/artist split of 84/16% based on Rolling Stones industry estimate (2011)http://musicmanager.last.fm/help/faq?category=Artist+Royalty+Programhttp://www.rollingstone.com/music/news/the-new-economics-of-the-music-industry-20111025?page=2https://www.google.co.uk/search?q=%243+a+month+last+fm&oq=%243+a+month+last+fm&aqs=chrome.0.69i57j69i65j0l3j69i60.2761j0&sourceid=chrome&ie=UTF-8
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CD BabyindependentStream (Interactive)n/a9%--0.001$0.01138,462n/an/a372138,462-91%-0.010-n/a10,9891,661,695553,8466,646,154----http://www.investinganswers.com/personal-finance/rich-famous/who-really-profits-your-itunes-downloads-3818http://www.hypebot.com/hypebot/2011/10/just-how-much-does-rhapsody-pay-artists-.html
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RhapsodyindependentStream (Interactive)n/a----$0.01138,4620.00110.0011372123,360n/a100%-0.011$0.0091$0.00222810,9891,661,695553,8466,646,154$9.99$109.998829,710Pay per stream is based on case-study by Levi Weaver (2013)http://leviweaver.com/2013/02/06/what-does-an-indie-get-paid-3-streaming/http://www.rhapsody.com/what-is-rhapsody/get.html
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Rhapsodywith record label & publishing companyStream (Interactive)n/a----0.001865,3850.00110.0011930490,272n/a16%-0.011$0.0091$0.00222868,68110,385,5973,461,53841,538,462$9.99$109.998829,710Pay per stream is based on case-study by Levi Weaver (2013). Assuming label/artist split of 84/16% based on Rolling Stones industry estimate (2011)http://leviweaver.com/2013/02/06/what-does-an-indie-get-paid-3-streaming/http://www.rhapsody.com/what-is-rhapsody/get.htmlhttp://www.rollingstone.com/music/news/the-new-economics-of-the-music-industry-20111025?page=2
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Spotifywith record label & publishing companyStream (Interactive) n/a--0.005-0.0011,312,500$0.00065$0.000651,146782,609n/a---0.006$0.0013104,16715,751,4885,250,00063,000,000$5.00$60.0083310,000The Spotify rate anecdotally varies from $0.004- $0.008 per play. NY Times quotes 0.5-0.7 cents. $0.006 used. Publishing $ taken from original infographic (David source)http://trustmeimascientist.com/2011/09/05/how-much-does-spotify-pay/http://trustmeimascientist.com/2012/08/06/how-to-fix-spotify/http://thecynicalmusician.com/category/cat-blog/music_business/http://www.nytimes.com/2013/01/29/business/media/streaming-shakes-up-music-industrys-model-for-royalties.html?pagewanted=all&_r=0http://readwrite.com/2013/03/13/spotify-six-million-paid-subscribers-growth-quick-enough#awesm=~oeoiRvilYDOzR6
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YOUTUBE (based on ad revenue)ad revenue, pre-roll video ads, per 1,000 views% to YouTubeAudiam cutAudiam's revenueYouTube's revenue per 1,000 viewsArtists' revenueYouTube views per monthYouTube views per month% ad revenue for artist% ad revenue for audiamviews needed to make $100views needed to earn minimum yearly wageband - views needed per month to earn minimum wageband - views needed per year to earn minimum wage
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YouTube via Audiamwith record label & publishing companyStream (Interactive): Ad Clicks$6.3345%25%$1.58$2.85$1.90663,507815663,50730%25%537,9632,654,02831,848,341----rates for the most lucrative, “pre-roll” video ads that appear right before the featured video = $6.33 as of March 2013.http://futureofmusic.org/blog/2013/06/18/new-service-collecting-royalties-youtubehttp://www.businessweek.com/articles/2013-04-22/its-getting-harder-to-make-money-on-youtube
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2013 data
royalties 2010 tidied
royalties 2010 original