Representing the artist that would otherwise not have a voice

Tag: Music Business

Kickstarter Has Helped Create 300,000 Jobs!

Is crowdfunding changing the world?  Apparently it is making a difference.  A new study from the University of Pennsylvania has found that crowdfunding site Kickstarter has created over 8,800 companies since launching, and with it 29,600 full-time jobs and 283,000 part-time ones. Professor Ethan Mollick examined 61,654 successful Kickstarter projects from 2009 thru 2015 and found that the site has generated $5.3 billion for creators and their communities.

“Successful crowdfunding projects have implications that go beyond the interactions of the backers and creators who participate in projects,” Mollick writes. “Crowdfunding campaigns lead to new organizations that ultimately generate billions in non-crowdfunding revenue and have hired thousands of employees.”

According to Mollick’s research, two- thirds of Kickstarter projects were created by individuals, with the rest coming from teams of mostly friends. A plurality of creators were between ages 25-34, though the average is 38, with 41 percent of the creators being female.

For musicians using Kickstarter, only 5 percent said that their projects helped “a lot” in securing a record deal, with 8 percent for publishing deals and 5 percent regarding distribution deals. That said, over 53 percent of respondents reported that their campaign helped “a lot” in owning the rights to their work, and 14.5 percent said it helped when going on tour.

“While it is not possible in this study to compare the e ciency of crowdfunding to other methods of encouraging entrepreneurship or subsidizing creative work, it is clear that, overall, the money raised from campaigns leads to positive returns across a variety of measures,” Mollick concluded.

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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Apple proposes flat streaming music royalties for songwriters

Apple has submitted a proposal to the U.S. Copyright Royalty Board that would simplify streaming royalty rates paid to songwriters, and significantly increase the rates paid by Spotify and other services that offer free, ad-supported music streaming.

A report by Ben Sisario for the New York Times surfaced the company’s submission to the Copyright Royalty Board. Amazon, Google, Pandora, Spotify and the Recording Industry Association of America are also expected to weigh in with their own proposals.

The Copyright Royalty Board is accepting input on future statutory rates that would be applied to downloads and interactive streaming services starting in 2018.

Apple recommended a set songwriting royalty of 9.1 cents per 100 song streams, to replace existing complicated federal streaming rules that enable its competitors—particularly Spotify and YouTube—to offer free streams of music that effectively pay artists very little and devalue music playback as a service.

“An interactive stream has an inherent value,” Apple’s proposal states, “regardless of the business model a service provider chooses.”

Apple Music does not offer a free “interactive” streaming tier as Spotify does, or as Google enables on YouTube. Increasing royalty rates to a flat minimum would make it much more expensive for Apple’s streaming rivals to offer unpaid streaming services, as advertising would not cover the difference.

The music industry has increasingly complained that free streaming services don’t pay enough in royalties, and that the easy access to libraries of artists’ music on sites like YouTube essentially erase the demand for paid services that deliver artists higher royalties.

In an interview last month, Nine Inch Nails frontman and Apple Music Chief Creative Officer Trent Reznorsaid of YouTube’s unpaid streaming services, “it is built on the backs of free, stolen content and that’s how they got that big. I think any free-tiered service is not fair. It’s making their numbers and getting them a big IPO and it is built on the back of my work and that of my peers.”

Apple currently pays out about $7 in royalties for each $10 monthly Apple Music subscription. The company’s last report on subscribers stated that it had 15 million paid subscribers.

Spotify says it has 30 million paid subscribers, but it also provides a “fremium” unpaid tier of interactive streaming service to another 70 million users, who also hear ads. Apple complains that Spotify’s unpaid tier hurts the industry and artists.

In turn, Spotify has complained that in order to reach iOS users in the App Store, it has to pay Apple a cut of subscriptions sold through the App Store. It does not have to pay Apple anything for subscriptions it sells on its own.

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.

To Subscribe to our Music News Updates, Click Here

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Making it in the Music Biz

Is it even possible to make it as a Musician or Songwriter now days?  The music industry is, no doubt, complicated and out of control!  I’m you or someone you know, feels the pain.  We all love music, but loving music isn’t enough to pay the rent.  Navigating Musicians the complicated music industry is not easy for anyone — not even the biggest names in the industry.

This infographic shows the typical organizational hierarchy of a Record Company:

Record Label Industry Org Chart

The big labels have resources that can take someone with minimal talent and make them a star.  We all see the performances and wonder, how did they get on TV, Radio, Morning Show, etc. when we all know x people that are better?  The reason is simple.  The labels know how the system works — they created it!

But what about the guy or gal that can’t even get a meeting with a label?  What about you or your friends?  Why can’t we make it?   Right!  We are with you on that!

Do you ever wonder why record labels require musicians T-shirts to effectively give away their names, lives and careers by requiring them to enter into 360 degree deals? They do so because they can.  They are in the business of making money for their investors, not making music. wholesale NFL jerseys  Think about it…How many record company CEO’s were ever making a living as a musician or songwriter?

This is where the Foundation for Musicians and Songwriters steps in.  We leverage our connections and resources to help the artist we huge represent develop their careers.  In many ways we function similar to how an Independent or Major Label works with one BIG exception — We DO NOT take any ownership of the Intellectual Property of our artist.  They come in with music — they keep it.  We help them write hit tunes — they keep them.  They make zillions of dollars as a superstar — they keep the $$ (although we hope they thank us when they win a Grammy ;).

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Artist DO Make it on their Own!

As an independent artist, how can anyone make it on their own?  We not only believe — we know, that it is very possible to make a good living as independent musicians and songwriters.  The key to success, however, is not simply being talented — there are millions of talented artist that never make it!  We believe the key to success is through learning how to navigate the complex nature of the industry.  It isn’t a secret that record labels and publishing companies make money through the artist they represent.  How many record label CEO’s actually made a living as a Musician or Songwriter?

Yet, we all know artist that have made it big largely on their own.

Sheryl Crow

After being a school teacher, jingle singer and backup vocalist (for Michael Jackson and Stevie Wonder) throughout her 20s, Minimo she released her debut album at 31 and didn’t get a massive hit until a year later with “All I Wanna Do.”

Pharrell Williams – 40 years old

Pharrell is an excellent example of someone that has figured out how to navigate the music industry. He created his own production company, he has had a very successful career as an independent producer (his production duo, The Neptunes, wrote and produced Britney Spears #1 hit “I’m A Slave 4 U” in 2001 when he was 28). However, he also Off-Shoulder-Obsession was the singer/songwriter/producer for “Happy.” One of the biggest songs of the decade.

Bill Withers – 32 years old

After serving in the US Navy for nine years and working on a factory assembly line, Withers released his debut album cheap NFL jerseys with the hit “Ain’t No Sunshine” at age 32.

Talented Artist Walk Away from the Music Industry Every Day

We are tired of seeing amazing talent walk away from the industry and give up their dreams because they can’t make a living as a musician  or songwriter.  Humanity suffers when people are not creating music.  Think about cheap jerseys our world history.  From the beginning of time people were creating music and sharing it with others.

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 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 Internet is Quickly Evolving

Let’s talk a minute about developing fans and how the industry and the internet is evolving.

Here’s a video wholesale jerseys of Ian Rogers, former GM of Yahoo Music, CEO of Topspin and now the CEO of Beats Music talking about the Stages of the Internet and the importance of trusted sources.

Ian Rogers Discussing the Phases of the Internet

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

The Foundation for Musicians and Songwriters was established to help in 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 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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