How Do Bands and Artists Get Paid?

I watched a video by Fox News titled Music Industry Woes in 2011, which consists of an interview with Richard Yaffa, the Founder/CEO of Media Ventures Group Holdings.  I'm sure we are all aware of the popular trend within the music industry to date.  Digital music sales increase as time goes by.  Through the advancement of technology and digital formats, record labels and established artists are looking for different ways to generate revenue.  The big dilemma is how to determine how to monetize their music, because CD sales decrease as digital sales increase.  When was the last time you have seen a record store, such as Sam Goody's, and I'm not talking about the small independent shop in your town?  None...they've closed down. 

The increased use of the web and social media has become the new way to discover music, and purchase.  YouTube can benefit unsigned artists by streaming their music to fans across the world, but established artists would not agree to using media networks as YouTube to stream their music because they need to sell it.  Touring seems to be only one of the many ways to monetize revenue from their artistry, however ticket sales have also plummeted.  Corporate partnerships is one way to assist in generating revenue, because they take care of the marketing and promotion side of the music business, which was available by record labels when they had much larger budgets.  Brand partnerships and sponsorships are more strategies taken on by bands and artists to bring in more revenue.  Vevo was launched by the major record labels as a sort of social media so they would be able to monetize their music through advertisements.  Today, every facet of the music industry is seeing a cut, except for digital sales.  



Social networks connect people from all over the world and sharing music serves the same purpose. When fans buy a full album from artists, it is seen as a leap of faith.  Artists are being put to the test to create greater songs than before, and they would have to do so if they want to sell their entire album instead of a couple of songs.  When artists adapt to using social media, it enables their fans to follow them and connect them to their passion.  There has been a huge transition on the consumer side and the artists side of the music industry, and artists must adapt to this change in the best way possible if they want to monetize their art (Yaffa, 2011).
(2011, February 11). Music industry woes in 2011. fox news. Retrieved July 2, 2011, from http://video.foxnews.com/v/4534588/music-industry-woes-in-2011/.