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ExtraTorrent.cc > Articles > Artists’ Profits Up 66%

Artists’ Profits Up 66%

Artists’ Profits Up 66%

Added: Monday, September 27th, 2010
Category: Bit Torrent Freedom > The Industries Of Records, Gaming, Software, Movies
Tags:ET, p2p, Torrent, Piracy, Peer To Peer, Network, Hackers, Internet, BitTorrent, Google, utorrent, bitcomet, extratorrent, 2010, www.extrattorrent.com
The recent study showed that the decrease of music sales only negatively affects record labels, but not the performers, since musicians usually only get 15% revenues arising from album sales. At the same time, the artists receive about 80% from collected remunerations and 50% from live performances.

While record labels stick to the argument that the decline in music sales caused by illegal file-sharing practice leads to less revenue for musicians, therefore decreasing their incentive to create new works, a new study proves the opposite.

The research, conducted by two master’s degree students from the BI Norwegian School of Management, which is considered the biggest business school in the country and the second in size in Europe, denies those music industry’s claims. The students concluded that since the advent of digital music the profits of the artists have increased by 66% on average! In fact, the only losers suffering from digitization are record labels.

Their master’s graduation work, called “The Norwegian Music Industry in the Age of Digitalization”, reveals the figures proving the increase in the artists’ income, which is rising thanks to an increase in profits from live performances, remunerations and government subsidies. The income of the musicians has been increasing over the last decade even though the record sales decreased twice over the same period.

Specific figures from the study are the following: profits from live performances rose by about 140% over the last decade, while remunerations rose by 110% and government subsidies – by 155%. Within the same period the number of performers has increased by around 30%.

The students found out that the decline in record sales hasn’t affected the individual performers, because they can only receive as little as 15% of the revenues from those sales. On the opposite, the prosperity of the singers saw a rise since they get about 50% from their live performances and 80% from collected remunerations.

Although the artists tend to complain they are losing money because of the digital revolution, the results of the study show that the only losers are record labels. Besides, these results indicate that the record companies are now losing their importance as a launch pad for newcomers to the industry, especially considering that an artist can only receive 2,5% from their music sold.

September 27th, 2010

Posted by: 

Date:  Monday, September 27th, 2010

Comments (2) (please add your comment »)

posted by (2010-09-27 13:05:20)
jpjp avatarHere's a link to an article in the UK Sunday Mail 26/09/2010. The article is about James Blunt - BUT the table at the bottom of the article shows a breakdown of who earns what from the retail price of music in a number of different formats. It clearly shows that the record companies make much more money from downloads than they do from a physical CD release.

posted by (2010-09-27 14:05:40)

labels have always been thought of as the middle man leach.
now they can get a real job and leave the coat tails of the stars

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