“Piracy is killing music!” they say. But as far as I can tell, that’s only true when an artist’s earnings come exclusively in the form of music sales. The numbers don’t lie, and they couldn’t be more obvious. And so it is. Long gone are the days when artists make the majority of their income from album sales. Today, it’s all about touring and merchandising.

Earlier this year, Billboard published this list which outlines the “Top Moneymakers for 2009”

1. Madonna: $242,176,466
2. Bon Jovi: $157,177,766
3. Bruce Springsteen: $156,327,964
4. The Police: $109,976,894
5. Celine Dion: $99,171,237
6. Kenny Chesney: $90,823,990
7. Neil Diamond: $82,174,000
8. Rascall Flatts: $63,522,160
9. Jonas Brothers: $62,638,814
10. Coldplay: $62,175,555
11. The Eagles: $61,132,213
12. Lil Wayne: $57,441,334
13. AC/DC: $56,505,296
14. Michael Buble: $50,257,364
15. Miley Cyrus: $48,920,806
16. Taylor Swift: $45,588,730
17. Journey: $44,787,328
18. Billy Joel: $44,581,010
19. Mary J. Blige: $43,472,850
20. Kanye West: $42,552,402

All of the artists above toured throughout 2008. And according to Billboard, the majority of their revenue came from touring alone. Yet many of these artists had better numbers than the year before. This is particularly interesting, given that 2008 brought some of the most dismal music sales figures in history. While Madonna tops the list, she actually had only the 50th best-selling album in the country. Clearly, the money is in the tour. But it’s not just ticket sales; don’t forget about all of the merchandising (which I rarely partake in) that brings in more dough than Madonna could shake a stick at.

Over time I have grown to accept that artists, whether signed to a major label or independent, can no longer rely on their music sales alone for profit. And don’t get tripped up by the typical CD/MP3 debate. The format really has nothing to do with rate of music sales when anyone can pirate music from the web. No matter what the format, it’s simply getting harder to sell music. It’s something that many of us who make a living in the music industry are having a hard time learning to accept.

There’s something that independent artists can learn from the big leagues here. While signed acts (what few there are) have the benefit of a cash advance, independents have to shell out all of the initial production costs from their own pockets. These costs include studio time, replication, distribution, music videos, and so on. And let’s not forget about plenty of legal assistance along the way, not to mention several other unforeseen costs. Many artists break the bank for these expenses with the intent to make up for it in music sales. But unless your band is from the “Top Moneymakers” list above, you should probably avoid this business model. So let’s just say that, hypothetically, you are on that list? It’s important to recognize that even Madonna has learned that the money is in the tour.

And so I’m going to propose a more realistic objective for artists: shift your investments (and focus) toward touring sooner rather than later. Instead of breaking the bank on unnecessary production costs in the beginning, artists should make an honest attempt to minimize the upfront outgoing cash. You can be sure that you’re giving yourself the best chance of financial survival, rather than relying on the day when you “make it big” on record sales. Because at this rate, that day may never come...even if you’re Madonna.

Source: Billboard

Tags: piracy, Billboard, sales, touring

Tags: piracy, Pirate Bay

Like many fellow Los Angeleans I first heard of The Asteroids Galaxy Tour when they were introduced on KCRW, a fantastic public radio station based out of Santa Monica College. Hailing from Denmark, the band came to play some of their music from their recent album simply titled “Fruit”. I loved the sonic character of the album, and the single called “Around the Bend” immediately became a new favorite of mine. So last year when Apple used the song in their commercial for the new Apple iPod touch, I was pleasantly surprised. Of course after reading the lyrics, it’s really no surprise at all. The second verse reads, “Pick a fruit, let me be your apple.”

Recently I decided to pick up the entire album from the iTunes store. But as I glanced through the reviews, something interesting caught my eye. A review posted on December 10, 2008 reads, “Fits the Vision of the Funnest iPod Ever. Personally chosen. Best, Steve.”

I’m happy to know that Apple’s CEO Steve Jobs participate in iTunes store reviews. We already know that he has good taste in music when he chose the song in the first place. And there’s plenty of evidence to suggest that this is Steve’s genuine signature. On several occasions we have seen that he signs his letters, emails, and memos with “Best, Steve”. And a well chosen song it is, Mr. Jobs!

Check out The Asteroids Galaxy Tour.
Tune-in to KCRW.

Tags: Steve Jobs, iTunes