Most artists make money with their music by selling downloads and CDs, however this is only one way to earn in the new music business. In a previous post we talked about the YouTube Partner Program which allows artists to generate revenue through uploading popular videos to YouTube. Licensing your own music however can be time-consuming as we discussed in a previous blog. We help get sync licensing by partnering with the pioneers in the world of music licensing, youtube.com. You’ll get paid every time somebody uses your music as part of their video project.
This is particularly exciting as Youtube has become one of the top ways people hear new music now.

Here’s how you earn money for your music on YouTube: once you become a Pro Soul artist, we’ll make your music available in YouTube’s growing catalog of licensable music. Your music will come up in the list of soundtrack options video creators have to bring their next project to life on youtube, it’s as simple as that.

In addition, your songs will be made available to be used in movies, TV programs and video game productions through other third party affiliates. Furthermore, we’ll give you the opportunity to livense your tracks to content creators for usage as background music in online videos, presentations, etc.

The best news is, as the author you get to keep 100% ownership of your compositions and recordings, and the license is not exclusive which means you can earn money from your music elsewhere as well. And if  you get an opportunity for exclusive license, you can cancel this license if required. We handle all the paperwork and legalities, you keep control of your music!

For more information about getting assistance from Pro Soul Alliance with your licensing or anything else, click here.

Youtube’s partner program has made some musicians realise that being active on Youtube can bring some real income. Here’s how it works and what you need to do to make money with it:

“Moldover’s new CD, over 3 years in the making, not only delivers gorgeously diverse music with meaning and musical mastery, it completely redefines what it means to “play an album”… Moldover’s CD packaging itself IS a new musical instrument! The CD is mounted on a custom designed circuit board, intricately patterned and powering a “light-Theremin”. Yes! You play the artwork and it makes sound! Only the musical supervillain genius of Moldover could develop something so stunningly innovative.”

Moldover got a little grumble over at Hypebot though – When Marketing Overshadows the Music – the author states: “This YouTube video shows just how innovative and fun the packaging is, but fails to do almost anything to showcase the music that Moldover says took three years to record.” Hypebot readers’ comments didn’t quite agree with the author’s opinion: “Look, it’s totally awesome what he did and if you think it “doesn’t focus on the music” enough… I would ask you, has the conventional major label delivery system been focused on “the music” at any point in the last 25 years?” Another reader thought the album’s circuit board and video an “awesome tech artifact, a good viral video” – and two readers exchanged digs between themselves (virtually, of course).

Whether the “Marketing Overshadows the Music” or not – one reader summed it up “they pulled a viral stunt that will get people talking about them.” Indeed they did! These days, artists have to get people’s attention amidst countless other distractions however they can. When marketing is fun, it’s a win win situation – and fun is what Moldover appears to have had marketing his music.

The Google owned video sharing site YouTube is blocking the UK from accessing music videos on their site after negotiations with the country’s Performing Right Society (PRS) for Music failed.  A statement from the owners of YouTube reads:

“Our previous license from PRS for Music has expired, and we’ve been unable so far to come to an agreement to renew it on terms that are economically sustainable for us. There are two obstacles in these negotiations: prohibitive licensing fees and lack of transparency. We value the creativity of musicians and songwriters and have worked hard with rights-holders to generate significant online revenue for them and to respect copyright. But PRS is now asking us to pay many, many times more for our license than before.”

The YouTube statement continued: “The costs are simply prohibitive for us–under PRS’ proposed terms we would lose significant amounts of money with every playback. In addition, PRS is unwilling to tell us what songs are included in the license they can provide so that we can identify those works on YouTube–that’s like asking a consumer to buy a blank CD without knowing what musicians are on it.”

PRS is claiming that the owners of Google are not willing to pay enough for licensing fees. In fact, PRS is outraged that the owners of Google would “neglect” artists and songwriters in this way. A report from the BBC states the changes were to take effect March 9, 2009.

YouTube pays a licence to the PRS which covers the streaming of music videos from three of the four major music labels and many independent labels.

Last week, PRS music, likely realising how many millions of dollars they are losing due to their stubborness, agreed to half their royalty rates from youtube. Smart move considering the site contributed 40 percent of PRS members’ plays!

I wonder if anyone will ever come up with an accurate analysis of just how much money artists with major representation are losing due to the lack of foresight the big music corporations have regarding the internet? It’s no wonder major artists managers are telling artists to go out on their own.

Connecting with Your Fans- The Trent Reznor Case Study

Michael Masnick talked at MIDEM about Trent Reznor and his business ideas, saying that Reznor and Nine Inch Nails represent the future of the Music Business. Apparently Reznor has found the “secret” of a successful Business Model.  It all starts with CwF, which stands for Connect with Fans. Once you have connected with these fans you create what is called the RtB, which stands for Reason to Buy. Thus, these two things together and you have the business model. Which seems simple, however it has been amazingly difficult for other mainstream artists to do what Reznor has done.  Reznor was even using this Business Model when he was signed with a Major Record Label.

In 2007, Just before Trent Reznor released his album Year Zero. Before the album was launched, Reznor set up a scavenger hunt, which started with the back of a t-shirt from the concert tour that started in 2007. On the back of this t-shirt some of the letters in some of the cities were highlighted. They spelled “I am Trying to Believe”. Some people managed to put it together and added .com to the end.  This then got these people sucked into an alternative reality game. Which was intensely fun. This was a new way to connect with the fans beyond the music. It create interest in the fans and new listeners, however it upset his record label. Another thing Reznor did to upset his record label is he would take USB drives, upload his unheard new music onto them and ‘accidentally’ leave them in the bathrooms of various concert locations he was playing at. This again excited fans! However, RIAA enforced laws and demanded Reznor stop distributing these songs. So basically what Reznor did, was continually give people a reason to connect with him which led to new fans and music sales. Even when it came to the release of the album, Reznor made it so that when the disk player heated up the CD, the CD itself changed colors. A reason to buy their CD when downloading was rampant. Innovation, creativity, experimentation.

Once Reznor was no longer signed with the Major Record Label, he went out on his own. This wasn’t a problem, because he had a business model. He gave fans options, and reasons to support him.

The price of an album is definitely not the issue. Fans will still be willing to buy, but an artist definitely has to earn it. As long as you can connect with fans, they have a reason to buy and there is money to be made in this industry!

www.youtube.com/watch?v=Njuo1puB1lg

More and more artists are finding new ways to get in touch with their fans.
The first major artists to actually really listen to their fans, and not demand attention from them, was NIN’s Trent Reznor, and Radiohead. These two bands showed the world what is to come in the music industry: connecting with your fans as a way to earn income with music.

Over and over again, you hear industry leaders saying “Connect with your fans, connect with your fans!” and for good reason. Trent Reznor and Radiohead practically gave their most recent CD’s away for free and generated significant income, and now there are many artists doing much the same with success.

Gaining the respect of ones fans is now the only way to go. Who wants to have a fan’s friendship and loyalty for one hit single, or even one CD? What is that worth in the long term? Not much. The more an artists connects with their fans, the more likely a fan is willing to pay for that artist’s music, and support and promote anything the artist does for a long time to come.

Not to say that earning income from what one has created is not important. Downloads and ringtones, donations, as well as earnings from YouTube and imeem can provide some of the income to fuel the new music business. But only by serving fans and adding value to that relationship can music begin to move from pennies to dollars again.
After much effort, many indie artists are now earning a full time income using these techniques. Examples coming in the next post…

www.hypebot.com/hypebot/2009/01/analog-dollars-vs-digital-dimes.html#more