How Much Is the Music Industry Really Worth?
With so many avenues for money, it is sometimes difficult to gage just how much the music industry is really worth.
The net worth of the music industry has become an attractive topic in the modern times. From the onset, it is clear that the music industry is perhaps one of the most innovative business ventures in the society. Artists express themselves in various ways according to their preferred genre. In the current music scene, there are countless genres ranging from hip hop, reggae, and raga to dancehall, classics, and rhythm and blues. The traditional music genres such as reggae and raga are getting phased out by more energetic beats from hip-hop and rhythm and blues. Musicians earn their incomes from the sale of music albums or through royalties awarded from the regulatory agency. In a properly regulated system, the returns accruing to players build them.
The net worth of the music industry impacts the lifestyles and welfare of the artists. If the artists are performing poorly, then the music industry is deemed to be dwindling. The worth of the music business can also be determined from the recorded and projected returns of the artists. However, traditional music sales are no longer the defining feature of the industry, especially in the wake of the internet and streaming capabilities. It is becoming increasingly difficult to accurately ascertain the value of music, both in substance and in monetary denominations. The music industry has built the careers and lifestyles of many artists, but it is no longer tenable to rely on the volume of sales or the popularity of a given song to determine the value of an artist involved in the music industry.
Biggest Names in the Music Industry
Despite the tumultuous state that the music industry is in, some musicians and producers have made a big fortune through the art. Some of the household names in the American rapper and singer scene are Jay-Z, Beyonce, Lil Wayne, and Drake. These artists make a fortune every year on the sales of music albums or singles. By any standards, the money received by some of these artists is a tidy sum, capable of transforming their lives significantly. As a result, some of the artists give their extra money to philanthropy. Despite the fact that the charity events take up some of the money earned, they are promotional gimmicks that draw the artists a stronger following. In the process of sponsoring some of these causes, the artists end up making more in sales. Thus, the earning power of the artists can be a result of the exceptional events the musicians engage in outside of the studio and concerts. The net worth of the players involved in such activities increases significantly compared to their counterparts who do not have a name beyond the musical charts.
The ability of any music to receive a wider audience or viewership depends on the promotional tactics employed by the producers or the promoters. Companies that have more money are likely to invest more in promoting their artists and their music. The biggest names such as T-Bone, The Neptunes, and Dr. Dre are worth $250 million, $150 million, and $350 million respectively. The producers earn their money out of commissions derived from producing songs or direct payments for the same. If the artists listed under the production house make more money in the field either by great promotion or by unleashing hit songs, the production studios benefit indirectly from retained royalties.
The worth of the musicians or the producers does not depend solely on the quality of the music produced. Days when the quality of music influenced the volume of sales went with the classics. Nowadays, artists earn money merely through their popularity. Demand drove the likes of Lil Wayne, Nicki Minaj, and Eminem to greater fortunes. Often, the artists maintain a huge fan base who they keep abreast with all the entertainment news. Before a song gets into the airwaves, the artists endeavor to popularize their music through various communication media outlets. The proliferation of the internet has made it possible for these artists to reach out to a larger audience and advertise their music. Using either Facebook, Twitter, or YouTube, the artists inform the public about their upcoming video or audio releases. In most cases, the artists give video trailers or short audio clips that inspire interest in the audience. At the time a song is being released, there are many prepayments from persons interested in hearing the music.
Huge crowds or fan bases usually translate to higher sales. Due to the competition in the music industry, the artists sometimes get desperate for more fans. In such cases, some of the artists may resort to unorthodox methods to improve their ratings. Some cause scandals to draw attention to themselves. In most cases, these public misdeeds accompany the release of a song or an album. The soaring news about the scandal is enough publicity for the musician, and this factor plays out well for sales. For instance, some of the musicians create sex tapes or cause crooked scandals. For example, recently, Jay-z and his wife Beyonce created a fake scandal in which they accused one another of cheating. Later, the artists made a song about the rumors. Despite rumors that the whole event was fake and choreographed, the artists sold albums for more than $700 million!
Emerging Trends of the Music Industry
Traditionally, musicians presented their albums to retail stores and music vendors to sell to interested buyers. The musicians or their promoters kept an inventory with whoever bought their music. Under this system, the artists could trace their music and ascertain their earnings. It is hard to duplicate the compact disks that were the primary storage medium for the music. Also, the producers incurred storage expenses since the music copies took up a good amount of space. Nowadays, people rely on digital media such as flash disks or cloud storage to store music.Most buyers prefer to buy the music online. The online sales mechanism is computerized and keeps an accurate inventory of the sale proceeds. Besides, the arrangement costs substantially less to administer as compared to the physical storage.
Due to advancements in technology, most artists have made their music available for streaming. Under this arrangement, the music is available in a digital internet-powered medium where multiple users can access it at the same time. Depending on the current laws or operational standards, the interested buyers may have the option to download the music for future use. However, most prefer to listen to the song online either in iTunes or on YouTube. The options mentioned above are cheaper than the older methods, and these allow the customers adequate access to music at low or no pay. However, the streaming services do not translate to higher rewards for the artist. On the one hand, the artists gain popularity. Also, after one has listened to the song, there is minor incentive to continue listening. Advanced software can download digital content from previously restricted sites, infringing on the intellectual property rights of the musicians and denying them revenues. In modern times, most artists do not earn as much as they used to before digital media came into being. Even the most popular artists rarely hit millions of album sales under this system.
Actual Worth of the Music Industry
The real worth of musicians nowadays is not only measured in sales but also in the values the music espouses. In a society that is getting more polarized by the day, musicians have an onerous task as the agents of change to promote virtues in the society. Music may sell only on the grounds of popularity or original composition of the beats. However, if the music causes social discrimination or incites people to violence, the entire genre faces the risk of being considered worthless on account of the danger it poses to the society.
Music is a definitive form of art that allows artists to express themselves in ingenious ways. In the process, the musicians pass invaluable messages to society. Besides being a passion and a talent, most players depend on the art as a source of livelihood. Thus, the worth of a musician is determined by the amount of money they make. In this respect, some artists have excelled in the music industry and have amassed millions of dollars in the course of a relatively short career. However, some are struggling, either due to poor musical compositions or inadequate promotion. Beyond the money factor, there is a need to evaluate the industry regarding the value system. The exact worth of the music industry is then difficult to determine. Monetarily, it seems to be declining, but this is due to modern technology. More people are listening, but are paying less. Under these concepts, a thriving music industry is one that promoted the best ideas and enables its artists to earn a decent income from the sale proceeds of their music.