YouTube Revenues Explained…

YT3YouTube monetization is complex but well worth understanding in a music economy where every revenue stream counts.

Attorney Chris Castle recently participated in a SXSW panel and posted an excellent guide to YouTube monetization on his MusicTechSolutions blog.

A Billboard chart explains revenue splits for compositions, recordings, and videos, and Castle touches on the opacity of CPMs and the impact Multichannel networks (MCN) can have on creator’s revenues.

The article explains the difference between “Official” or “Premium” videos and user generated content (USG).

Castle delves into the mysteries of YouTube’s ContentID and Content Management Systems (CMS) and shed light on the reality of what it takes to become a YouTube celebrity.

“We often hear about “YouTube stars” with elite channels (1 million plus subscribers) who are very well compensated. The source of this high level of compensation is rarely limited to advertising revenue. Most of the time, their ad revenue is salted with a high number of payments for what are essentially sponsorships, endorsements or product placements, often called “brand integrations“.

This is a good read for all musicians that can help them decide how best to distribute their marketing assets.

Musicians Are Natural Entrepreneurs

Berkle article clip imageBerklee Today, the journal for alumni of Berklee College of Music, recently gave me the opportunity to explore the relationship between musical training and the skills of entrepreneurs. I interviewed several Berklee alumni who have gone on to create groundbreaking music technology companies serving independent artists.

Each of these companies provides tools that help musicians distribute music, raise funds and market themselves, but what struck me was the similarity between direct-to-fan and lean startup practices. Direct-to-fan platforms give artists a strong connection with their super-fans, providing valuable feedback and ongoing engagement. In particular, early-stage pre-release platforms like PledgeMusic show artists what their fans value and how they want to be engaged. By the time the funding cycle is complete the artist knows their customer and has had the opportunity to tweak their offerings. Each person I interviewed described their musical training as fundamental preparation for working in a startup environment.

You can read the full issue of Berklee Today here or download a pdf of the article. Please check out each of these inspiring entrepreneurs and their companies. You will be amazed!

The rare and valuable skills of musicians

Daniel IndartI recently had the opportunity to create a presentation for Daniel Indart’s Music Entrepreneurship students at the Cornel School of Contemporary Music at Shepherd University in Los Angeles. My presentation: Thinking Different(ly)…The Rare and Valuable Skills of Musicians discussed the importance of an entrepreneurial mindset in today’s music industry. While business and music are diametrically opposed activities, they are complimentary. The life of professional musicians is remarkably like a startup company. We may not think of ourselves in that light, but the similarities are striking. Musicians can learn a great deal by thinking metaphorically and studying lean startup practices. We are uniquely equipped to learn new skills because we understand the process of deep, deliberate  practice. This also makes musicians valuable in a continually disrupted economy where innovation, flexibility, and intrinsic motivation trump past work experience and training.

The students were inspiring and I had a great time. You can check out my slides, a list of related resources, and a survey of revenue streams for musicians from the awesome folks at the Future of Music Coalition.

Please be sure to find out more about Daniel Indart and Latin Music Specialists. Daniel is one of the premier authorities on all genres of Latin music, a prolific composer/producer and a wonderful educator. Thanks for inviting me!

Chamber Music America Jazz Grant Workshop

chamber-music-america

As musicians we spend as much time as possible working with our craft but can struggle with the business side of our careers. I  think of business as the complete chain of events that brings the music out of our imaginations into the world. Money is fuel, but is only one piece of the equation. Bringing music to life requires the skills and attention of many smart people; musicians, presenters, managers, agents, marketers, labels, publishers and fundraisers. Composers and performers are musical CEOs, managing each step and partnership along the way.

Organizations like Chamber Music America (CMA) are making a huge contribution to classical, jazz, and world music by providing grants and the business education that musicians need. On January 24, 2013, Jeanette Vuocolo, Program Director for CMA Jazz led a well-attended workshop at The Blue Whale jazz club in downtown Los Angeles. Ms. Vuocolo’s presentation focused on the New Jazz Works: Commissioning and Ensemble grant application process and featured panelists, Bennie Maupin and Remy La Boeuf.

The New Jazz Works grant, which is made possible by the Doris Duke Charitable Foundation, provides funding and music business guidance to professional US jazz ensembles of 2-10 musicians in three phases:

1.  CORE: Creation and Performance

The creation of a new work, the work’s world premiere, and one additional performance. Both performances must take place within the United States. This phase must be completed within eighteen months.

2. Continued Life

The second phase supports additional concerts, touring, open rehearsals, master classes, clinics, school and community visits, residencies, conference showcasing, promotion, self-presenting and recording. Activities can take place in the US or abroad.

3. Better Business

Phase three supports the ensemble leader, funding business related activities; attending conferences, meeting prospective presenters, taking classes, and working with mentors and consultants.

Both musician-panelists described what they have learned. Besides the opportunity to compose and perform a new extended work, they found that the application process itself was educational, helping them to articulate their goals and musical vision. Both Mr. Maupin and Mr. La Boeuf described the many new opportunities and business relationships that have emerged from their involvement with CMA. The program also encourages musicians to give back to their communities, mentoring others and sharing their experiences in panels and conferences.

For more information and application materials please visit: http://www.chamber-music.org/

Thinking Different(ly): Creative Music in the Digital Economy

On January 15, 2013 I gave a presentation to alumni of The Royal College of Music in Stockholm Sweden. The topic was music careers in today’s economy – musical entrepreneurship and developing multiple income streams. Here are the slides featuring case studies of several entrepreneurial musicians and a basic overview of the principles music publishing and licensing.

RCM: Business books and resources

A list of business-related books referenced in my recent seminar at The Royal College of Music in Stockholm, Sweden:

  • ReworkJason Fried and David Heinemeier Hansson

RCM: Creativity, problem solving, and skill building resources

A list of creativity, problem-solving, skill-building and teaching/coaching resources. referenced in my recent seminar at The Royal College of Music in Stockholm, Sweden:

  • SwitchChip Heath and Dan Heath

RCM: Music industry books

A list of music industry related books referenced in my recent seminar at The Royal College of Music – Stockholm, Sweden:

Following the Money – Alternative music revenue streams for musicians

A bucket under every drip…

Drops in a Bucket
Photo courtesy of Smabs Sputzer

I recently had the opportunity to research and write a piece for Berklee Today magazine exploring lesser known revenue streams for composers and musicians.

In today’s music industry, tapping every revenue source is key, particularly for independent artists. Thinking like an entrepreneur and getting ahead of the curve with new technologies can create exciting opportunities for distributing and promoting music.

This piece starts with the basics of copyright and the role of rights organizations and jumps into library music and the potential shifts that will be created with the adoption of HTML 5 as the new web standard.

I was was very fortunate to receive input from artist Neara Russell, music publishing administrator Patricia Blair, composer Joel Goodman, and the good folks at ASCAP and SoundExchange. Special thanks as always to my editor Mark Small at Berklee Today!

You can read the full article here:

Follow the Money

 

How Social Media Impacts Brand Marketing

Today Nielsen  released graphs illustrating where consumers are getting trusted recommendations. Their charts clearly illustrate the importance of peer recommendations and clear communication and interaction from company web sites. You can view the full post here.

Preferred consumer sourcesWhere are your customers getting information about your products and services?

What are their most trusted sources?

Are your communications reaching your audience?

Is it easy for them to join the conversation and spread the word about your company?