Jeeni Blog

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Facing the Broken Music Industry.

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Facing the Broken Music Industry.

By Adam Cowherd @ AmplifyX.com

Did you know that artists take home only 12% of the $43 billion spent on music annually, according to Citigroup? [1] The hip-hop artist Russ put it perfectly when he said, “The music business isn’t set up for the artists to get rich. It’s set up for everyone else to get rich off the artists.” [2]

If you start looking deeper into the music industry, one of the first things you’ll discover is how broken it is. Artists are the nucleus of the business, but somehow they’re the individuals left with no ownership of their Intellectual Property (IP), inhibited creative freedom, and only a sliver of the earnings. There are so many entities involved in the value chain of music that it has created a convoluted industry structure that lacks equality and transparency.

When we break down the mechanics of the music industry, we see just how many hands are in the pot: record labels, managers, producers, booking agents, and streaming platforms. A report by Ernst & Young highlighted the post-tax payouts of streaming revenue and identified that record labels are taking nearly 75% of the payout. [3] Why are artists today signing with record labels?

Signed artists have fans. They do not have a majority of royalties, ownership of their masters, or creative freedom.

Artists have historically been enticed to join record labels as a way to grow their popularity, because major labels can provide global brand recognition. But the music industry is in the business of making a profit — not in the business of freebies. The artist’s growth may be guaranteed, but not their wealth.

Take Thirty Seconds to Mars for instance: after multiple platinum records, they were still millions of dollars in debt to their label. [4] This is a result of the artist being forced to pay the label back for cash advances. Although advances may seem extremely alluring, many don’t realize how hard these loans will be to recoup from their small slice of royalties.

Artists thriving off of their album sales are the exception, not the rule. This recognizable gap in income has inspired a large number of artists to start challenging the status quo of record label contracts. Artists today have more tools and resources to build their career — and wealth — independently. Traditional services formerly tied to record labels, like recording, distribution, and promotion, are becoming commodified. Also, modern artists have a wide range of social media platforms to engage listeners on, from Instagram to TikTok to Triller.

Artists can grow their fame and find new fans on their own terms—retaining their rights and independence.

Evaluating the industry today, music spending is at an all-time high. Goldman Sachs predicts we will have over 1.1 billion people on paid streaming platforms by 2030, generating over $130 billion in music industry revenue. [5] By pursuing alternative ways to release music, artists can take a larger cut of the profits while retaining ownership of their IP and a majority of royalties.

The industry is projected to experience massive growth over the next decade. Artists should reap the rewards.

05
Jun

Global Online Music Streaming Grew 32% to over 350 Million Subscriptions in 2019

By Abhilash Kumar Spotify continues to be the market leader and recorded a 23% YoY growth in total revenue during CY 2019.Music streamers are focusing on creating exclusive content with podcasts continuing to feature strongly in 2020. Seoul, Hong Kong, New Delhi, Beijing, London, Buenos Aires, San Diego – 3rd April 2020 Global online music streaming subscriptions grew 32% year-on-year (YoY) reaching 358 million subscriptions in CY 2019, according to the latest findings from Counterpoint Research. This is driven by the availability of exclusive content like podcasts, originals which attracted people towards the platform and eventually turned them as subscribers. Also, promotional activities like price cuts in subscriptions in emerging markets, bundled offers from telcos added to the growth. We expect that online music streaming subscriptions to grow more than 25% YoY to exceed 450 million subscriptions by the end of 2020. Commenting on the overall market, Research Analyst, Abhilash Kumar, said, “Paid subscriptions grew 32% YoY compared to 23% YoY growth of total MAUs. This suggests people are ready to pay for music streaming for a hassle-free experience.  However, this is not completely user-driven. Music streaming platforms are following a two-step approach to gain subscribers, first registering them to their platform as free users by means of excellent advertising campaigns and secondly pitching them with attractive offers to transfer them to become paying subscribers.” Spotify topped CY 2019 grabbing a 31% share of the total revenue and a 35% share of the total paid subscriptions. The runner up, Apple Music, follows with a 24% share of total revenues in the industry and a 19% share of the total paid subscriptions. Due to Apple’s high focus on its services segment which includes Apple Music, its subscription base grew 36% YoY in CY 2019. Amazon Music subscriptions reached a 15% share in 2019 compared to 10% in 2018. Talking about the top performers, Kumar added, “Spotify maintained its top spot with the help of promotional activities like free Spotify Premium for three months, price cuts, customized campaigns like Spotify and a focus on exclusive content. Tech giants like Amazon, Apple, Google have started focusing on music streaming and have sufficient cash at their disposal to give stiff competition to Spotify. Apple Music is making improvements in its app like the introduction of night mode, curated playlists to target a group, etc. Similarly, Amazon Music has been trying lossless music and is creating its own niche where it competes with Tidal.” Despite global players strongly pushing their music streaming platforms, regional players stand strong in their respective regions, primarily because of regional exposure and high focus on local content. Gaana continues to be the no.1 player in the Indian market, Yandex Music is leading in Russia. Similarly, Anghami leads the Arab world. Tencent Music Group leads the China market with the help of its apps QQ Music, Kugou and Kuwo. Discussing the impact of the COVID-19 pandemic on the OTT industry, Kumar added, “We expect the OTT sector will experience an uptick as people stay at home actively tracking the latest updates. During this outbreak, audio OTT consumption has switched from music streaming to the radio. People in highly affected areas are worried about the outbreak and are therefore continuously tuned to news on TV/radio for updates. The traction of news channels and podcasts saw an upswing while that for music streaming dropped.” What’s common is that both the regional and global players are focusing a lot on building exclusive content. Acquiring podcast companies and creating their own channels are all being undertaken. It’s often exclusive content that drives paid subscription growth. More than 80% of music streaming revenue came from paid subscriptions. The rest came from advertisements and partnerships with brands and telcos. Therefore, increasing paid subscriptions is of prime importance for music streaming platforms. The comprehensive and in-depth chain of reports on Global Online Music Streaming Market for Q4 2019 is available to help track the market in terms of MAUs by region, paid subscriptions by region, revenues, and ARPU. To view the global report in terms of users, revenues and ARPU, click here. For regional analysis on MAUs and paid subscriptions, click here. Please contact press(at)counterpointresearch.com for further questions regarding our in-depth research, insights or other press inquiries. Background: Counterpoint Technology Market Research is a global research firm specializing in Technology products in the TMT industry. It services major technology firms and financial firms with a mix of monthly reports, customized projects and detailed analysis of the mobile and technology markets. Its key analysts are experts in the industry with an average tenure of 13 years in the high-tech industry. Click HERE to visit or return to jeeni.com

04
Feb

Daisy Chute, ‘Cradle Songs’, EP review

Daisy Chute’s newest EP consists of three sonic fairytales, crafted with swelling strings, twinkling percussion and her bewitching vocals.   Daisy has been an important and keen part of Jeeni by creating and uploading her incredible tracks to Jeeni's folk channel. She was also a key part of Jeeni's artist partnership programme alongside Arianna May. Check out Daisy's showcase here: https://jeeni.com/showcase/daisy-chute/ The opening track, ‘Cradle Song’ is a theatrical piece which expresses an implacable feeling of uneasiness. This tempting and crafty opener is intentionally overcompensated with syrupy amounts of serenity and reassurance as an attempt to calm and lull the listener, “Now, hush”.   The near-sinister nature of this track is thanks to the dark guitar notes, rumbling bass and sultry vocals from Daisy that coaxes you further into something that you just might not be able to back out of.  Daisy’s voice here utilises the non-sensical melodies heard in the oldest of lullabies and folktales in a hypnotic repetition, which further pushes the feeling of being enticed and convinced. This track creeps along slowly and regularly, like a rocking cot and totally succeeds in lulling the listener to concede to a peaceful, warm state, despite its dark character.  Contrary to its name, ‘Melancholy Air’ feels much more sincere and warm than the first track, due to the flittering strings, traditional folk percussion and uplifting plucked string instruments. The piece is medieval and traditional, but brought together and realised in a way that could only be done now. The atmosphere and space given to each instrument is reminiscent of the delicate and sparkly quality that Thomas Newman gives to his motion picture scores such as ‘American Beauty’ and ‘Finding Nemo’. This cinematic essence could be what inspired Daisy to include an instrumental version of the track, focused purely on the orchestral impact and story-telling.  The final track, ‘Mary’s Song’ has all of the charm and sentiment of a typical dedicated piece. This is because the arrangement is formed around a specific person and the emotions that that person evokes. As a result, the piece is interwoven with feeling in each instrument and note. Daisy’s capabilities for writing sweet, gliding melodies are utterly enchanting and are showcased quintessentially throughout this dream-like project. Check out Daisy Chute's Jeeni showcase here: https://jeeni.com/showcase/daisy-chute/ Follow Daisy on social media: Facebook: https://www.facebook.com/daisychuteofficial Instagram: https://www.instagram.com/daisychuteofficial/ Twitter: https://twitter.com/daisychute How can Jeeni support artists like Daisy Chute?   JEENI is a multi-channel platform for original entertainment on demand. We’re a direct service between creatives and the global audience.   • We give creatives, independent artists and performers a showcase for their talent and services. And they keep 100% of everything they make.  • We empower our audience and reward them every step of the way.  • We promise to treat our members ethically, fairly, honestly and with respect.  • Access to artist liaison and a supportive marketing team. 

15
Dec

Artist Focus: Giack Bazz - A Royalty Revolutionary

In just five short years, Giack Bazz has crafted a spectrum of ideas and concepts with his discography that a lot artists don’t get around to in their lifetime. Although Giack has expanded his sound to stylistic corners that he even had to create himself, his sound has typically always been centred around alternative, experimental rock, inspired by the likes of David Bowie, Thom Yorke and Devendra Banhart.  Giack studied songwriting at BIMM London where he honed his already present skills as a singer-songwriter. Jeeni is always on the lookout for exciting, new talent that deserves a wider outreach and so, BIMM alumni, Ella Venvell, Jeeni’s artist liaison specialist remembered Giack as a unique and layered act and introduced him to Jeeni’s mission. As well as working with BIMM students, Jeeni has recently become partners with ACM to be at the source of new talent and help to uplift them in their careers. Hailing from Modena, Italy, the london-based Giack Bazz began his musical journey in 2016 with the sentimental and heart-aching ‘Childhood Dream'. The stunning debut was a means of processing the wave of emotions that came with the passing of his mother when he was just nine. Giack was also lucky enough to be picked up by his region’s arts council to fund a grand rock opera based off the impressive debut.  By kicking off his musical path with such a challenging and maturely profound project, Giack set up a powerful origin, with which he has used to launch into increasingly fascinating works, the likes of which I have never heard before.  As a fairly straightforward 9-track project, ‘Childhood Dreams’ is so far the only vanilla tracklist in Giack’s discography. Giack went on in 2018 to make a long-redundant 2-disc split with his second album, ‘Giack Bazz Is Not Famous’. This album had a more light-hearted, yet angsty indie rock tone which featured more full band arrangements compared to his first. The disc openers, ‘Beetle’ and ‘Forgotten Media’ are certainly two focal points of the project.  The year after came the Japan inspired ‘Haikufy’ which, despite containing 30 tracks, clocked in at under 20 minutes long. This project is the clearest first sign of Giacks experimental tendencies. Ranging from twinkling, dreamy moments to thrashing noise and yelling, the weird and wonderful ‘Haikufy’ still can’t help but feel cohesive as an experimental project due to clear vision and production. ‘Haikufy’ proved to be a vital stepping stone for Giack’s future as an artist and not just experimentally, as it was here where Giack first initiated his “personal protest against the unfair paying scheme of streaming platforms.”  Giack explained to me that “streams are only paid after the first 31 seconds clock in, the rest of the song is worthless for streaming platforms.” And so, by releasing an album that has densely packed in tracks that meet the bare minimum length to gain royalties from streaming services, Giack exploits a system just as they do. It was this concept that gave birth to Giack’s most recent project which is a kind of sibling to ‘Haikufy’ except, instead of 30 short songs, last year’s ‘Impression A.I.’ contained 366 written, mixed and mastered songs in a 6.5-hour timeframe!  Released under the name ‘The Royalty Instrumentality Project’ as a collaboration with partner and producer, Deborah Verrascina, ‘Impression A.I.’ is an inspiring and righteous protest against the unethical operations of streaming services, “By creating a vast album of short songs, we effectively use their system against them.”   With concepts like this; born of passion, research and justice, Giack makes for such a formidable force in the music industry. With Deobrah’s production to polish Giack’s ambitious projects and equally in-depth, albeit sinister marketing campaigns from manager, Marta Teolato, the team of three are a force to be reckoned with when it comes to music royalty justice. Fortunately, the trio are currently planning a similar protest project, fulled by extensive collaboration. Watch this space.  Giack is performing live at The Beehive, Empson Street on the 21st of January, tickets are available now: https://www.eventbrite.co.uk/e/the-beehive-underground-sound-tickets-211275650157?aff=GiackBazz  How can Jeeni support artists like Giack Bazz?   JEENI is a multi-channel platform for original entertainment on demand. We’re a direct service between creatives and the global audience.   • We give creatives, independent artists and performers a showcase for their talent and services. And they keep 100% of everything they make.  • We empower our audience and reward them every step of the way.  • We promise to treat our members ethically, fairly, honestly and with respect.  • Access to artist liaison and a supportive marketing team.  Check out Giack’s Jeeni showcase here: https://jeeni.com/showcase/giack-bazz