The death of the music industry has been predicted for years ever since Apple gave us the iPod. The rise of free or pirated music online and the declining sales of CDs. Its about the power of the internet. The problem is that people just do not buy music the way they used to. They either pick and choose the odd single, or they stream music on services such as Spotify or YouTube, often free of charge. You might think that the rise of digital music would compensate for the dire fall in sales of physical CDs, but this isn’t the case. It seems now there is a new way of making money by turning up to awards ceremonies and product events. Stars are reportedly making from $4,200 to $170,000 depending on the wattage of your star.
According to Entertainment Retailers Association, who track sales across the entire entertainment industry – albums, films and video-games - last year the top-selling product was a video game followed by the James Bond film Skyfall. You have to go down to 9th place before you hit any music. 10 years ago it was not uncommon for a “hitmaker” to sell 3 million copies. Giving rise to even pop’s biggest female star, Beyoncé, singing on her latest album, “Soul not for sale/ Probably won’t make no money off this/ Oh well.” She even makes the credibility-stretching claim that she is going to have to work “nine to five to stay alive”.
Touring has long been the most lucrative way of making money for the big stadium acts. Now the global recession is over, ticket prices are on the up and tours are an opportunity to sell merchandise and push the brand. The days of a baseball cap or t-shirt are over. Mainstream artists have perfumes to their name; there are artists who have recorded just one album, but have polka dot shorts, necklaces, and lines of nail polish. No area is off limits. Pharrell and Daft Punk's 2013 single, Get Lucky, also spurred a brand of Get Lucky condoms. In 2012, $178 million was earned from “ancillary brand revenues.” This includes sponsorships of a venue, concert or tour, from corporations such as Budweiser and Coca-Cola where the artists taking a cut, being compensated for both the use of their music and of their image. The deals add up. It seems that jazz artists are getting in on the action by cutting deals with the likes of Vitamin Water
PRS does not track the pay checks were stars are possibly the most opaque: personal appearances. It is no secret that pop stars can cash in when they are invited to perform at the birthday. What is more surprising is when celebrities are paid just to turn up: not to sing or present an award, but just to be seen at the launch of a product or the opening of a new nightclub. Reportedly the fees start at about $3,400 for the most Z-list of celebrities, all the way up to $340,000 or more for an A-list star. These personal appearances have to be managed with caution. One agent says “You have to be very, very careful, if you become a hired hand, and are seen at the shaking of every stick, your ubiquity will destroy your credibility.”
KEEP YOUR HEAD TO THE SKY ~ Much Love ~ Gino
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