Explore – Sept 2024
In the vast realm of the music industry, artists, composers, and performers navigate a complex landscape of revenue streams. From live performances to synchronisation in audio-visual productions, each avenue offers its own opportunities for compensation. Let’s delve into the main ways musicians earn money through their craft:
1. Live Performances
Live performances serve as a cornerstone for many musicians’ income. Authors, composers, and their publishers are compensated indirectly through collective management organizations (CMOs), which grant licenses for the live performance of their works. Performers, on the other hand, receive direct remuneration for their contributions without involvement of rights. On the contrary, as a result of the increased captation and dissemination of live-performances, a live-concert these days is often paired with a transfer of the rights on the recordings made.
2. Recording
Recording music involves several layers of compensation. Authors and composers, along with their publishers, earn royalties indirectly through CMOs for the reproduction right, granting permission for the recording of their works. Performers, depending on their contract, may receive royalties based on revenue generated from their recorded performances or a one-time payment (buy-out) for their participation and full transfer of rights.
3. Distribution of Recordings
Once recorded, music is distributed through various channels, including physical sales, digital downloads, and streaming platforms. Authors, composers, and their publishers earn royalties via CMOs that collect remuneration directly with the distributors of the recordings. Performers, especially those with royalty contracts, receive a percentage of revenue from sales and streaming via their record label, while others may receive a lump sum (buy-out) payment at the time of recording.
4. Broadcasting and Public Performance
Authors, composers, and publishers receive direct remuneration through their CMOs for broadcasting and public performances of their works. This includes FM radio, online radio, TV, as well as venues like bars, hotels, and restaurants. Performers and producers also receive remuneration directly from their CMOs for these uses, under the so-called right to ‘equitable remuneration.’
5. Synchronisation
When music is synchronised in audio-visual productions such as games, movies or commercials, various parties receive compensation. Authors and composers both receive direct payments from the producers of games, movies or commercials for synchronisation and indirect payments through their CMOs for the distribution and public performance of the new work. Producers also receive both direct and indirect payments from the producers of games, movies or commercials and their own CMOs Performers are only compensated when their contract offers them a royalty that takes the synchronisation further distribution into account.
Navigating the intricacies of earning money through music requires an understanding of these diverse revenue streams. By leveraging live performances, recordings, distribution channels, broadcasting, and synchronization opportunities, musicians can create sustainable income streams while sharing their art with the world.
Music360 