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
Selling 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.
The 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.
Streaming music 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.
Synchronization, or allowing music to be played in film, TV and commercials, will result in an upfront fee and later royalties. Sync licenses can be lucrative and a chance for less popular music to make it big.