Prepared for Arash E. | Delivered March 26, 2020
Pop Music Revenue Streams
To determine revenue streams of pop music singers and average sales earnings, in order to create a business plan for an artist pursuing a music career.
There are over
45 possible revenue streams
for an artist. These include a publisher advance, various royalties, a record label advance, sales at shows, label settlements, persona licensing, sponsorship and grants.
Making, Selling and Performing Music
, whether physical copies or digital ones from iTunes or Google Play, is one revenue stream. Money from that sale is paid out to both the composition and sound recording copyrights, as well as middle parties involved.
average retail price
for a music album, both physical and digital, in the UK was £8.38. An artist typically makes
between 10% to 20%
from each sale, so would make somewhere between £0.83 and £1.68 for each album sale.
is also a revenue stream. The percentage payout depends on the specific type of service and negotiating power of all entities involved. An
average pay out per stream to labels
is between $0.006 and $0.0084, but a signed artist makes $0.001128 from this.
, or allowing music to be played in film, TV and commercials, will result in an upfront fee and later royalties. Sync licenses can be
and a chance for less popular music to make it big.
, such as tours, concerts and music festivals, are a huge way for artists to make money. Live shows are also experiencing
highest ticket prices ever
events account for
28% of an average musician's income
, the largest single share.
Other Revenue Streams
is one way that artists make side money. In the US,
can be as high as $3 per 1000 streams.
's "Gangnam Style" made
from its 2 billion views.
give artists the opportunity to endorse a brand they may endorse in return for additional revenue streams.
Pop music singers can also make money through
direct sales of fashion and merchandising
. Many artists sell posters, clothing, perfume and other paraphernalia.
is also a viable way to get support from fans and generate a revenue stream. For example, Angie Johnson from The Voice raised around
to record her upcoming album.