Music has existed and progressed side-by-side with humanity for centuries. Only in modern human history have so many different monetizing strategies become available. Musicians are monetizing with new strategies as digital platforms have become the favorite choice for music consumption.
What are some among many monetization methods?
Also Read: How Modern Technology Enables Independent Artists
Discover how musicians are monetizing their latest tunes and adapting to shifting consumer preferences.
Understanding different monetization strategies reveals which can work best for a particular musician.
Royalties from Streaming on Platforms
Spotify, Apple Music, and YouTube are some recent sources of revenue generation for modern artists that have gained immense popularity. They mostly operate on a per-stream basis where artists earn a certain percentage per stream.
But there are millions upon millions of music content available, it becomes significantly difficult for artists to generate meaningful income. So, many musicians have criticized this monetization model for its low payouts.
Some platforms offer a higher percentage of streaming income if artists choose to be exclusive with them for all of their content releases.
Live Streaming and Virtual Concerts
COVID-19 drove everyone inside their house and onto digital platforms en masse. This ramped up the rise of virtual concerts and live-streamed performances.
Many platforms such as Instagram, Twitch, and YouTube offer artists to perform for their online fans and monetize through tips or virtual gifts. Even VR concerts are becoming popular for fans to experience their favorite music easily from their homes.
Sale of Merchandise and Goodies
This is not a new trend. Selling goodies and merchandise of the artist or band is a classic way of generating income. Items can include posters, T-shirts, vinyls, and more. Additionally, musicians can host meet-and-greets.
The reason why it is on this list is because digital platforms have transformed it. Social media and e-commerce tools have made it easier to promote and advertise. Any artist is now capable of setting up an online store with a mobile device and an internet connection.
Crowdfunding and Other Platforms
Many independent artists used to struggle with reaching their fans, but digital platforms have made it easier. Direct-to-fan sales are now possible for every musician. Here, they can sell music, merchandise, and even tickets to concerts.
Applications that support this are Patreon and Bandcamp. In the latter, people can set their prices to receive a greater portion of the revenue compared to streaming platforms.
Closing Thoughts
Powered by digital platforms, musicians are monetizing their latest tunes. It allows them to have more control over how their content is distributed, and how they interact with their fans.
