How far can ‘Freedom’ reach until it becomes problematic?
Maybe we find the answer on the internet, this ‘free‘ world with unlimited possibilities.
The internet is a great platform to connect with your fans. Social Media can be a great addition, if you understand Marketing pretty well. If you don’t, social media is just a waste of time. You’d better spend this time writing great songs. Correction, do spend your time writing great songs and let someone else concur the social platforms with your music.
It seems like the ‘free‘ world is runned by an elite who are ruling this world and no police or government have the power to change this.
If you’re a lucky man or women working in the Music Industry, you are probably wondering every day to find this backdoor to get the hell out of it.
Apparently it’s good bu$ine$$ for some others.
Spotify, a great application I like, has a huge growth in workforce in the last year and the average wage should go up to about 151.000€ per employee per year. Of course this is not a correct number because the boards of directors are making even far more money.
So if you would take a 0.00052€ per spin on Spotify, and take a more realistic average wage, like 30.000€ per year, the musician/band would need to have about 58 million spins to get the average wage as the Spotify employee.
For about 99% of all musicians/bands on Spotify, reaching this number of spins is almost impossible. Also, don’t forget you’ll have to divide this number for every band member. That means for most bands, you’ll have to get more then 200 million spins. And, you’ll have to set up a company in The Netherlands to get your Tax cut on Royalties.
Only the superstars will hit this number and have the resources to escape the Tax on Royalties.
Just a question in between lines: Don’t we see this number, 99%, appearing more often?
Spotify is still not making any money, even no 0,00052€. No profit at all. 0.
Just another question: Is this bu$ine$$ model even sustainable? Apparently, a lot of Record Labels think it does.
We can conclude that only the the Spotify user and the Spotify employee, especially the board members, are the true winners in this story in the end.
The people who deliver the content, the music, are stuck in a double situation: the customer clearly made the choice for streaming, but the pay per stream isn’t sustainable for most musician/bands.
Another problem in this area is YouTube. In regard to bu$ine$$, Youtube makes hardly a break-even. So in essence, this company makes no profit with 1 Billion views per month.
YouTube, also fully embraced by the online customer, earns the money by his biggest content provider: music videos.
It’s weird really: YouTube is a ‘sharing’ technology in a neo-capitalistic world.
That’s like Stalin is trying to get Thatcher pregnant…
I have doubts this creature will have a bright future, don’t you…?!?
And what to do with this: How is it possible that terrorists can have access to an YouTube channel? Freedom of speech…?
Don’t get me wrong here, these services are great, especially for the end-user. Only the bu$ine$$ side is a gigantic bubble waiting to explode.
The main question I keep asking: are these services sustainable? As if they refuse to pay the musicians and bands a fair pay because they know, if they do, they can lay down the books…
Basically, running a bu$ine$$ on adds and for free, will produce you a ticket to the casino.
Facebook however, manages to make good profit. But their list of clients do not only contain clients from the Music Industry. They can spread the risk and speak to a bigger audience.
Maybe that’s the problem with Spotify: a great part of their business is generated by the Music Industry. It costs 30€ to release one album per year on Spotify. Many bands won’t make 30€ per year from streaming on Spotify.
Now draw a circle for yourself: a Music Industry pays to be part of this Music platform, but doesn’t get payed in return…