New Business Models
…and how musicians, labels and songwriters are compensated
In 2007, I was invited to McGill University to guest lecture at a cross-disciplinary class taught by producer Sandy Pearlman. Since the students had been tasked with designing a workable new music-related business model for their final project, I decided to put together a presentation that focused on the back end of the music business model: how performers, songwriters and labels were each compensated when their music was either streamed or downloaded.
In the years hence, we have presented this information to hundreds of musicians: at our own events in Chicago and New York, at a Grammy Independent’s Day in Philadelphia, at Drexel University, University of Maryland and the NYS Arts Summit. Because the information in the presentation changes so rapidly, we have hesitated to post it up online to this point, but we had such a demand following FMC’s 8th Policy Summit in Washington, DC in October 2009 that we thought it was time to just get it online, and commit to updating it frequently.
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Watch the presentation (25 minutes in 4 parts) which looks at some examples of digital stores, subscription services, artist-to-fan connections, licensing, and new forms of radio and if/how performers are compensated. |
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Download the New Business Models spreadsheet, which gives specific details about if/how performers, labels and songwriters are compensated under various models. |
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Download the Digital Distribution sheet, which explains how independent and unsigned musicians can use services like CD Baby, Tunecore, Reverbnation, Nimbit or Amazon’s Create Space to get their music into many of the most effective digital music services. |
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Download slides from Jed Carlson, COO and co-founder of ReverbNation, who joined us at the 8th Future of Music Policy Summit. His presentation includes survey results from their own members, as well as practical tips on building a “fan funnel” that will drive your fans from casual listeners to active promoters. |
Got a correction? Do you see something that needs to be added or deleted on any of these materials? Contact kristin [at] futureofmusic [dot] org and we’re happy to fix it.



