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Music Industry Will Hit $41 Billion By 2030

A Goldman Sachs analyst forecasted that streaming will account for $34 billion of the total revenues.

The global recorded music industry will grow into a nearly $41 billion behemoth by 2030, thanks largely to the growth of streaming, according to Goldman Sachs analyst Lisa Yang and her team.

The Goldman Sachs analyst further predicts that streaming will account for $34 billion of that, of which $28 billion will come from paid subscription while $6 billion will come from ad-supported streaming services. She predicts that another $4 billon will come from performance rights, synchronization will be $500 million, physical and downloads $700 million and other come in at $1.2 billion.

The report further states that thanks to the explosion of streaming, the Universal Music Group and Sony Music Entertainment should carry hefty valuations. Both companies are themselves not listed in the stock market, but the shares of their parents, respectively Vivendi and Sony. Corp., are publicly traded.

Looking at the Universal Music Group, Yang assigns a valuation of 19.5 billion euros, which according to the OandA website, converts to $23.3 billion; while she says that her estimates for Sony Music Entertainment’s performance suggests a valuation of 2.16 trillion yen or $19.8 billion.

Looking at UMG, Yang breaks out her estimates for that company, which helped derive its valuation. In the Goldman Sachs report, she estimates UMG’s revenue at 12.6 billion euros  ($15.05 billion) by 2030 (that’s twice its current level), of which 1.58 billion euros ($1.89 billion) will be from publishing; 9.3 billion euros ($11.11 billion) from streaming; 1.1 billion euros $1.3 billion) from artist services and music licensing; 500 million euros ($597 million) from merchandising and 150 million euros ($179.2 million) from physical and download sales.

In 2016, U.S. recorded music sales were up by double digits for the first time in nearly 20 years to 11.4 percent with $7.65 billion in revenue, according to the RIAA. That was up from $6.87 million in 2015. Although the music business showed signs of a recovery at the half-year mark, the 2016 year-end results show more significant growth, led by streaming revenue. This was the first time since 1998 that the U.S industry experienced a double digit increase in overall revenue.

Chicago Clubs Fined for Back County Entertainment Taxes

Clubs across Chicago have suddenly found themselves in deep water as the Cook County Department of Revenue demands years worth of funds from unpaid amusement taxes.

According to an article from the Chicago Reader, the county code dictates that 3 percent of all ticket sales from venues with a capacity of 750 or fewer, unless the tickets are sold for “live theatrical, live musical, or other live cultural performances,” should be paid in taxes. Small-capacity club Beauty Bar has been asked to pay more than $200,000 in taxes going back at least six years, and President of Hospitality Business Association of Chicago Pat Doerr told the Chicago Reader he represents a half-dozen more clubs asked to pay similar prices.

Most of the businesses the county has so far demanded back-taxes from are venues that primarily book DJ and electronic acts. Beauty Bar owners and Doerr tell the Chicago Reader they thought these establishments were exempt from the amusement tax when the city of Chicago deemed DJ performances to be “live cultural performance” in 2006, but the county says that rule does not apply at its level.

A statement from Cook County Spokesman Frank Shuftan to Billboard Dance reads as follows:

The Cook County Department of Revenue is responsible for collecting the County’s home rule taxes. Among those are an amusement tax which imposes a tax upon the patrons of every amusement which takes place within the County that fails to meet certain exception criteria contained in the County’s ordinance.

The tax in question contains an exemption for live cultural, live musical or live theatrical performances taking place in a venue with a maximum capacity under 750 people. Venues that fail to meet these criteria or the definitions within the ordinance are subject to collecting the amusement tax from its patrons. Pursuant to the evidence currently in our possession, the County believes there is an outstanding tax liability. The Department of Revenue works with venues to address various questions and resolve outstanding tax liabilities.  In the event, the Department of Revenue is unable to resolve outstanding tax liability issues, those matters are then referred to the County’s Department of Administrative Hearings and after a hearing is conducted, the hearing officer will deliver a decision. 

We look forward to resolving this case in a fair and expeditious manner.

Beauty Bar responded to Billboard Dance as follows:

In May, 2015, our under 750 capacity venue Beauty Bar Chicago that provides some of the best live DJ experiences to our patrons on a weekly basis, received a fine from the Cook County Department of Revenue for $198,104.30 for Amusement Taxes owned since 2008.  We were surprised, to say the least, as we have operated under the commonly understood interpretation of the Amusement Tax ordinance, for both the County and the City, that venues under 750 capacity were exempt from this tax as long as they were collecting cover for “live musical or other live cultural performances”.  In 2006 the City of Chicago issued a Safe Harbor Ruling concluding that DJs were considered to be a live musical and cultural performance so long as they manipulated the music, and in general created a live experience.  Thus, as Beauty Bar only collects cover for nights during which we showcase professional DJs that meet all the criteria set forth by the City of Chicago, we’ve been comfortable operating under the assumption that we’ve been exempt from this tax.  Not once had we been questioned by the County about this tax until receiving the bill.

After we received the May 2015 citation, we merely thought the County was looking for us to articulate our position, which we did via phone and email.  We then received a letter asking for us to provide contracts for our DJs, and a signed statement explaining reasons why our venue was exempt.  We easily complied.  Last Fall and Winter they requested more information such as examples of our advertising/posters showing that our DJ’s were prominently displayed, and amounts paid to DJs during 2015 per month.  On February 23, 2016 we received a summons to court, after which we engaged an attorney to defend us.  We became aware that the County was targeting other DJ driven small venues, and thus we engaged with the Hospitality Association of Chicago to coordinate efforts.  During the proceedings this summer, we became alarmed to learn that the County officer Anita Richardson hearing the case made comments such as “Rock, Rap, and Grunge are not fine art, no matter how popular they may be…”, causing us concern that the County may be positioning to not only collect taxes on our DJ driven venues, but also on our small venues that showcase live bands such as The Empty Bottle that for 25 years now has been a staple in Chicago’s cultural fabric.

The great thing about Chicago is that it is ripe with small venues such as ours, and so it’s a shame that the County would attack the very venues that give life to the City’s culture, instead of working on ways to support and cultivate such enterprise.  As it is, we pay an exorbitant amount of tax, in one of the nation’s highest taxed cities.  We hope that eventually common sense will prevail, and that the County will come to realize they are attacking some of Chicago’s most important cultural contributions to the world.  Chicago invented the idea of a DJ being an artist, and spawned House music, one of the world’s most popular musical genres.  Last year the City of Chicago Department of Cultural Affairs presented a summer long showcase on House Music’s 30 year history.  Some of the world’s best known rappers come from Chicago.  If these proceedings continue on, and Beauty Bar is forced to continue expending legal bills to defend itself and the idea that rap, house, rock, and country are indeed ‘art’, it will become impossible for us to continue operating.  This amount of tax, both the back-tax they are seeking and having to pay this tax on an ongoing basis, would simply put us out of business.  Again, we hope this will not be the case, and that the County officials will not take the preposterous position that a government body ought to determine what is and what is not considered to be ‘art.’

About the Foundation for Musicians and Songwriters

The Foundation for Musicians and Songwriters is an IRS 501c3 Public Charity that is dedicated to helping Musicians and Songwriters develop their careers in the Music Industry.  We do so without taking a penny or rights from the artist we represent.

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Finally! A Foundation FOR Musicians and Songwriters!

Virtually everyone knows a talented Musician or Songwriter that is struggling to make it in the Modern Music Industry.  It is very difficult to be “discovered” in today’s climate.  And the ones who are fortunate enough to get a Labels interest are often pressured to sign a one-sided 360 degree wholesale nfl jerseys contract.

The sad fact of the matter is that even if they do sign a contract, there is zero guarantee that the record company will cheap jerseys actually promote the artist.  All too often the artist ends up signing their name, music, copyrights, and career over to a Company only to find out they are still on their own.  All too often they wake up one day realizing that they owe the Label that was supposed to help them hundreds of thousands of dollars, that they are “Controlled” by an organization that is not in the business of music — they are in the business of making money for their shareholders and investors, and with they have zero ability to get out of the long-form rock solid contract!

The Foundation for Musicians and Songwriters represents the artist that would otherwise not have a voice. Through the generosity and philanthropy of our donors, FMS provides services similar to a record label without binding those we serve into any contract.

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The story that is as old as the Music Industry

It cheap nba jerseys is very difficult to be a young artist and turn away a development deal and a check for more money than they have ever seen in their lives!  Countless musicians and songwriters have been in this situation.  Recent news about Prince (RIP) highlights the struggles that even an artist as accomplished as he was faced.

“Record contracts are just like — I’m gonna say the word — slavery,” Prince said as recently as August while speaking to a group of reporters at his Chanhassen, Minnesota, recording studio, Paisley Park. “I would tell any young artist … don’t sign.” —
Prince Warns Young Artists: Record Contracts Are ‘Slavery’, Rolling Stone Magazine, August 19, 2015

Prince was an incredibly famous Musician that also had incredible resources, yet he was unable to get out of his contract with Warner.  This is a story we all need to take to heart.  We hear about Prince.  He can get articles into Rolling Stone.  What about the thousands of others who end up bankrupt and unable to sing their own music without paying royalties to their Label?

  • When musicians and songwriters sign over their copyrights, this is precisely what happens.

Want another story of a famous PPT powerful rocker that had to file bankruptcy and nearly give up his career to fight a record label?
Tom Petty’s Real-Life Nightmares, Rolling Stone Magazine, January 17, 2015

The Foundation for Musicians and Songwriters purpose is to help musicians develop their careers so when they do get to the point of signing a “Record Deal” they have the leverage to negotiate a fair contract.

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Here’s a good video interview from Liquid Web’s This Week in Music with Scott Roger who is the Manager of Paul McCartney, Arcade Fire, Noah and the Wale, BDI and others.  They talk about how Scott has navigated the complicated record industry.  Scott Roger is one of the few managers out there that understand the music industry well enough to help his clients navigate it successfully.  Of course, most artist can’t afford or even get a meeting with someone like Mr. Roger.   This is another area where FMS can make a difference for the artist we represent — without taking any money, copyrights or intellectual property from them.

Music Matters — Future Generations are Counting on us!

Every generation has created new music that has influenced future generations — Classical, Jazz, Blues, Rock, EDM, etc.  Every genre of music can be heard in the next.  The Rolling Stones, in fact, were deeply influenced in the UK by the Blues music that was coming out of America.  Heck, they got their name from a Muddy Waters tune titled “Rollin’ Stone!”  If the Blues music wasn’t being recorded and shared from America, the chances are we would have never had the Rolling Stones, Jimi Hendrix, The Beatles, etc…

We have been fortunate as a society to have had an industry wholesale mlb jerseys that, good or bad, has backed artist and helped them get their music out.  That all started to change sometime around the Napster era circa 2001.  15-years later, music is not being created or discovered like it once was.  Now days there is more music available in the word than ever, but there is no filter that helps people discover music they like.  It is very difficult for the average consumer to weed through the constant barrage of media hitting them daily.

Musicians need to create music that targets their core audience and generate fans if they ever want to make it in the music business.  Fans drive plays, which drives credibility, that drives interest, that drives revenue…  And the entire process starts by creating good quality music that is at a level that consumers expect — not a Garageband competition recorded in the basement.

The Foundation for Musicians and Songwriters can, and will, make a difference…

The Foundation for Musicians and Songwriters was established to help in cheap jerseys all areas of artist development.  FMS through the generous donations of our sponsors can bring in the resources artist need to establish a career that can influence future generations.

FMS has the connections, insight, eCommerce expertise and business And acumen that the vast majority of Musicians and Songwriters don’t have.  Accordingly, as a 501(c)(3) organization, donations to FMS are 100% tax deductible, which helps our Donors pay-it-forward and promote the continuation of music for future generations — benefiting all of humanity.  As a Music Foundation, every dollar we rase is used to develop the artist so they can make a living in the Music Industry and get their music to the world.

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