From records, to CDs, to digital tracks,
the music industry is constantly evolving.
In a world where free music can be obtained with the click of a button,
how do musicians stay afloat? Unfortunately,
these musicians need to learn how to evolve along with the changing times and technology. It’s no longer about how many fans are
listening to your music, but how many of your fans are dedicated enough to actually
purchase your music. Access to illegal
downloading and streaming applications have forced artists to put an even
greater importance on live performances.
More artists are going on tour hoping that their fan base and album
sales will increase. However, many musicians
are now struggling with the question: is touring really worth the risk?
Last year,
many of the top grossing artists were among those who did indeed go on
tour. In fact, Madonna was the industry’s
number one earner in 2012 thanks to her “MDNA” tour. According to an article on Yahoo! Music, “The 54-year-old Material Girl topped Billboard Magazine's
annual list of 40 top money makers for the second time after earning an
estimated $32 million - 93.5 percent of her revenue - from her 88-date "MDNA"
tour, 2012's biggest tour” (Yahoo! Music). Madonna made an unbelievable profit for the
year. What’s even more unbelievable is
that nearly all of that profit was made from touring alone. The artists trailing behind Madonna such as
Bruce Springsteen, Roger Waters and Van Halen also had very successful
tours. Even Lady GaGa feared putting an
end to her tour until her injuries were too much to bear. The Hollywood
Reporter writes, ‘“I am completely devastated and
heartsick. I've been hiding this injury and pain from my staff for a month,
praying it would heal, but after last night’s performance I could not walk,”
the performer said in a statement after a concert in Montreal’ (Vlessing). GaGa did not want to stop performing even with
a tear in her hip. She feared disappointing
and losing fans and therefore losing profit as well. Billboard
magazine even reported on the top 40 list that, ‘“The entire top 10 averaged
84.2 percent of their income from concerts…”’ (Yahoo! Music). With
statistics like this, it seems as though going on tour is the only option for
artists. If they want to make a big profit
and earn a spot on the top earning list, touring is the way to do it.
On the other hand, there are many
risks involved with going on tour. In an
interview with artist, David Lowery, he stated, ‘"Touring usually only pays enough to pay the crew and expenses.
Touring only makes sense if it increases your sales. Artists often go on tour
for free in hopes that the tour pays off in increased sales"’ (Resnikoff). Many artists start touring to get their name
out there and to leave an impression, gaining life-long fans. They pay for the tour and everything that
goes along with it all on their own. So,
what happens when you don’t sell as many tickets as you had anticipated? What if fans don’t go out and buy your new
album afterwards? These artists lose out
on all of the money they had laid out for the tour. Not only did their plan
and hard work fail but they now have a major setback financially.
The
band, Garbage, decided to take the plunge and tour without a label. They are aware of the chance they are taking but
have high hopes that it will pay off. Rolling Stone reported that, “In doing
so, the band realized it had to pay for recording and videos out of its own
pocket. ‘“The freedom it affords you is so amazing,” Manson says, "but
it's nerve-wracking. We've put our own money into it”’ (Browne). Without the control of a label, the band is
free to write, record and release any material they desire. However, they also have no funding to back
them up if that material doesn’t sell. It’s
a 50/50 chance. This could be the
greatest decision the band has ever made or the worst. The only thing Garbage can do is perform and
hope for the best.
Fitz
and the Tantrums also went on tour for three years, performing multiple times a
day, rarely getting any time to spend at home.
The lead singer, Fitzpatrick, expresses that, ‘“It's really exhausting.
You're doing a performance for a website and you know they have almost no
readership, but you do it anyway. You're in somebody's garage doing a taping
and you know no one will see it, but you think, 'OK, five more fans here or 10 more
there”’ (Browne). The way Fitzpatrick
describes going on tour is very dull and depressing. Not only was it exhausting for this singer
but it turned his life at home upside down.
Touring and making money seems like
a glamorous lifestyle from the outside.
However, is all of this hard work and risk really worth the possibility of becoming a top earner? Can artists really make a profit from simply
releasing albums and promoting them without a tour? Or will all of their hard work touring pay
off? Yahoo!
Music reported that, ‘“Yet even
in the coming years, as streaming services become a more important revenue
source, possibly replacing digital downloads and CD sales, one thing is
unlikely to change: concerts will have the greatest influence of top earners' overall
earnings,” said Peoples’ (Yahoo! Music). Peoples overlooks all of the money put on the
line, the exhaustion and abandonment of home-life. They seem extremely confident that the only
way artists can make money today is by touring.
Artists need to decide for themselves if going on tour is worth the risk
or if they can continue to get by in life with the little profit they’re making
without it.
Browne, David.
"Survival of the Fittest in the New Music Industry." Rollingstone.com.
N.p., 8
Nov. 2012. Web. 19 Mar. 2013.
<http://www.rollingstone.com/music/news/survival-of-the-fittest-in-the-new-music-industry-20121108>.
"Madonna Crowned Top Music
Earner in 2012 Due to World Tour." Yahoo! Music. N.p., 22
Feb. 2013.
Web. 19 Mar. 2013.
<http://music.yahoo.com/news/madonna-crowned-top-music-earner-2012-due-world-170447517.html>.
Resnikoff, Paul.
"I'm a Successful Artist. And Here's Why Things Have
Never Been Worse..."
Digital Music News.
N.p., 14 Feb. 2012. Web. 19 Mar. 2013.
Vlessing, Etan.
"Lady Gaga Battling Joint Inflammation, Cancels Tour Dates."
www.hollywoodreporter.com. N.p., 2 Dec. 2013. Web. 19 Mar. 2013. <http://www.hollywoodreporter.com/news/lady-gaga-cancels-tour-dates-421108>.
In an ever-changing music industry musicians cannot rely on album sales anymore as pirating music is still very prevalent and does not seem to be going anywhere. As Alyssa pointed out that we are, " In a world where free music can be obtained with the click of a button..."(Palmer). Even though singles and albums are being stolen all the time there is still a market for concerts, where musicians can make money and do not have to worry about pirators. Author Nancy K. Brown wrote in Rethinking the Music Industry,
ReplyDelete"The ubiquity of filesharing brought recession to the music industry early, as it made their
core scarce good of recorded music infinitely replicable" (Brown). Avid music junkies are now able to download that same quality of song that was once only for sale.
With the album and music single source of income depleting many artists are going on tour to make a profit that album sales once offered them. This is a double sword issue as there are many artists that do not support pirating as well as some big names that don't mind it. One big name artist who doesn't seem to mind how the music industry needs to change is Lady Gaga (Huffington Post) . In an interview with Tech Dirt Lady Gaga said, "... you know how much you can earn off touring, right? Big artists can make anywhere from $40 million [£28 million] for one cycle of two years' touring. Giant artists make upwards of $100 million. Make music -- then tour. It's just the way it is today. (Tech Dirt)".
There is evidence that even though it is sometimes grueling, touring can still make money. According to Yahoo! Music, Madonna earned the most money at $32 million dollars from touring in 2012 (Yahoo! Music). This goes to show that even though earning money through album sales might be a thing of the past, a concert is still a must see event that can not be replicated. I personally believe that pirating music is wrong, although with technology these days it is something that I do not believe can be stopped. Music companies are going to have to stop fighting this losing war and change their business plans as seen fit to stop the bleeding profits. People are not going to stop pirating music because there are not strong enough laws to do end it.
Knowing that the cost of touring can be a lot of money, music companies should focus on helping artists with elaborate tours that help both parties make some sort of a profit on what they have all lost from album sales. In reality this will not work for all artists but I can see it helping many big name artists who are currently at the top of their genre. People are still listening to music now maybe more than ever. If record labels realize that they can make up some of the profit share by helping their artists put on the best tour possible record labels will be in better shape than they are today.
Works Cited
Baym, Nancy, “Rethinking the Music Industry,” Popular Communication 8.3 (2010): 177 – 180.
"Lady Gaga Says No Problem If People Download Her Music; The Money Is In Touring." Techdirt. N.p., n.d. Web. 24 Mar. 2013.
"Madonna Crowned Top Music Earner in 2012 Due to World Tour." Yahoo! Music. N.p., n.d. Web. 24 Mar. 2013.
Palis, Courteney. "Lady Gaga, Jack White, Norah Jones And More: 10 Musicians OK With Piracy And Illegal File-Sharing." The Huffington Post. TheHuffingtonPost.com, 06 Feb. 2012. Web. 24 Mar. 2013.
There’s something interesting to note about the top ten artists on Billboard’s Top Moneymakers List – until you get to Justin Bieber at number ten, the artists fall into two categories: Country Musicians, and Older Acts. Country Music has a following unlike any other, so I’m not shocked to see those names on the list. But I’m also not surprised to see those older acts. Madonna, Bruce Springsteen, Roger Waters, Van Halen, and even Dave Matthews Band and Coldplay, both have fanbases that range in age due to their long existence, whether it be from the 70s or 80s like Springsteen and Madonna, or the mid to late 90s like Matthews and Coldplay. Why do I mention this? Well, because their longevity is the reason that they’re the top earners in the industry.
ReplyDeleteThere was a time when digital music didn’t exist. In fact, the day a record came out was the best day of the year for fans of popular acts. And now that a lot of popular acts are still making music, their fans are still buying music – the old fashion way. Because these artists have fans in their 30s, 40s, 50s, - even 60s – their albums are being bought left and right. And as a result of that, more people go on tour. I go to a Springsteen concert every year because I know his whole song catalog. When I put down $150 for a Bruce ticket, I know I’m getting three hours of solid music that I know and love. And while I’ve never seen those other bands live, I know that Dave Matthews has one of the hugest followings in the business, and Madonna puts on an amazing show.
Taylor Swift though? I’m not paying an arm and a leg to see an excited blonde play four songs that I know and only moderately like. And while some parents may buck up and pay money to take their child to the concert, they’re certainly not buying the album. Not when they can buy one song for $1.29 on iTunes. But aside from that, artists like Swift and Bieber have a bigger problem. While it’s great that they both top the lists of digital sales, it’s really only a fraction of the people that are listening. The article Rethinking the Music Industry explains that industry trade groups blame the large fall in revenue in the music industry on unauthorized file sharing and piracy. So if I buy one Taylor Swift song, I can theoretically share it with thousands of people with the push of a button. And even if I don’t want to illegally post it on the Internet, I can simply email it to a bunch of people. Interestingly enough, though, I would never dare to do that to a Springsteen or Madonna track.
So then artists have to tour. They have to tour and hope that people will hear their music and fall in love and go out to buy more albums. But lets be real, that’s not happening. Unless you have a reputation that precedes you, no one is buying your album after a tour – it’s just an unrealistic thought. People buy albums before tours, not after, and I highly doubt that a Justin Bieber concert will move you so much that you just have to buy his new album. I don’t think its about touring being worth the risk – these artists have to tour. They won’t keep any fans if they don’t, and their label won’t allow them to skate by with their decent record sales. Touring is an obligation, not an option.
Just last night I paid $200 to see Justin Timberlake and Jay-Z this summer at Yankee Stadium. I already bought Justin’s album –he’s had my support since 2002 when his first solo album came out and I didn’t even have an email address, let alone access to file sharing. Same with Jay-Z – I’m already a loyal fan. Other acts going on tour in 2013 include Taylor Swift, Lady Gaga, Rihanna, One Direction, The Who, and P!nk. Do you want to know who’s going to be the highest earners next year? To find out, don’t look in your iTunes – go look at the CDs you and your parents have at home.
Baym, Nancy, “Rethinking the Music Industry,” Popular Communication 8.3 (2010): 177 – 180.
"Madonna Crowned Top Music Earner in 2012 Due to World Tour." Yahoo! Music. N.p., n.d. Web. 24 Mar. 2013.
While many artists do seem to claim poor due to free online downloading of music versus paying, there are so many other factors that don’t add up. Artists collect money from so many other areas other than just purchasing their latest albums. First of all are their tours. “Madonna was named the biggest money maker in music in 2012” and her tour helped her achieve that number one spot by earning “93.5 percent of her revenue” (Reuters 2013). Why are tours so profitable? Well for starters artists hope that it boosts sales. Many times when you go a concert you forget about old songs that artists play and you end up buying them or maybe you even want to buy songs before you go to a concert so you’re up to speed on everything that an artist will be singing. They also make money on ticket sales. While some artists argue that they may not make a lot of money after expenses, I don’t really know how often that’s the case. It obviously isn’t the case for Madonna and while I didn’t go to her concert, I do know the price of ticket sales. About ten years ago, concert tickets weren’t that expensive. I can remember going to several concerts with the ticket prices being well under $100. I went to a Rolling Stones concert and had good seats and the prices were about $100, which at the time I thought was pricey. Now I feel as if it costs an arm and a leg to go to a show. I went to the Watch the Throne Tour with Jay Z and Kanye West and I had mediocre seats with the price of the tickets being around $300. Lady Gaga and Beyonce tickets in the nosebleed sections run for about $200. With the price of ticket sales skyrocketing, how is it possible that artists can even argue they don’t make a profit especially with statistics like Madonna’s.
ReplyDeleteAnother way that artists make money is through endorsements. Take for example, Beyonce. She is a spokesperson for Pepsi, which I’m sure includes a high priced contract, and she also did the Pepsi Half-time Show at the Super bowl. While she probably wasn’t directly paid for her half-time show, she was able to promote her upcoming tour by putting on a phenomenal show and increase her own record sales by playing music from herself and her past a member of Destiny’s Child. So many people have smart phones these days, which aid users in being able to easily purchase music through itunes or even apps. This obviously benefits artists financially because it involves purchasing music. I never illegally download music because not only does it have viruses but also it’s so easy to purchase a song on my phone on iTunes and have it be available within seconds. Applications like shazam also aid in purchasing music because when it reads off the name of the artist and song, you can easily hit download on iTunes and it can be available to you within seconds.
Finally artists make money from other applications like Pandora and Spotify. According to Ben Sisario, both companies, which offer free listening to music with commercials, have never had a profitable year due to the high rate of royalties that the companies pay to other music companies (Sisario 2012). If the music companies are collecting such high rates of royalties, clearly the artists are making at least some money off of that despite listeners not directly purchasing music.
Sisario, Ben. "Pandora and Spotify Rake In the Money and Then Send It Off in Royalties." The New York Times. N.p., 24 Aug. 2012. Web. 21 Mar. 2013.
"Madonna Crowned Top Music Earner in 2012 Due to World Tour." Yahoo! Music. N.p., 22
Feb. 2013. Web. 19 Mar. 2013. .