Revenue Streams -Royalties. week3

Posted: October 31, 2014 in Networking Music.

In the battle against piracy the digital economy act has tried unsuccessfully to restrict shared content online. Although next year there is plans to deter persistent users/downloaders with warnings and lawful information, the act is ”difficult to protect.” It is intrinsic to the future of the music industry that a strong copyright framework can protect the rights of users so this is constantly changing and being reviewed.

”Educating young people on digital consumption is also crucial. The latest OFCOM report shows 12-15yr olds are developing fundamentally different communication habits to those of older generation. Government and industry must work side-by-side to ensure there is a sustainable legal market for UK music in the future.”

 In 2013 the uk saw for the first time that online sales and downloads had out run the Cd and Vinyl industry by approx. 10%. The search for new business models are increasing popular especially in ‘the big four‘ BRIC countries, as  the market for digital music is growing as fast destructive technology can also evolve.

On turning a passionate hobby into a successful industry the revenue is paid usually a 50/50 spilt between the  creators of the music, and those that manage the distribution. There are 3 main areas in the music industry where revenue can be generated,

  • Record Sales
  • Broadcasting
  • Live performance.

Upon looking at some of the graphs in the above link, pages 17-27 show how revenue is distributed amongst the artists and collaborative business’. It proves to be very beneficial to the songwriter, performer, composer and producer of the music of which i am becoming all three with . It will be even more beneficial if i were to be successful in live performance however I’m more interested in a realistic approach to making revenue and advancing my studio skills to a professional standard. Understanding that live performance, producing and writing are the most sustainable sources of income, i now wish to develop my idea of a digital platform or record label for local talent.

”Its now about building communities, drawing circles around existing models and being innovative with emerging technologies.”


The Performance Rights Society established in 1914 which is now in conjunction with MCPS ensures that ”anyone exercising the performing rights are properly licensed and collects an income for the licensing. By monitoring the use of music use or reproduction online, in live shows and by broadcast, they are able to monitor and collect money known as ‘royalties’ from others using your music. They are exclusive to a membership contract and there a few different levels of access through different services they provide.



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