The music business is so complex, with so many actions being involved before a record and subsequently music video is released. There are so many middlemen all the way to the streaming and other distribution services that allow fans and consumers to enjoy their favourite artists records. It is no wonder that a lot of the revenue is garnished along the way. 12% of $17 Billion, $2.04 Billion we all must agree is pittance for all the hard work that goes into the creation process.
There are 55,000 artists in the UK, if the revenue were evenly distributed (which it ever rarely is), then each artist only makes £11,563. This is a serious problem to the sustainability of the craft.
This was why it was imperative for us to target that sector 1st, that and the short form factor and how it is perfect for on-demand and live-streaming. That is bearing in mind that the pandemic even decimated their live gig revenue stream which accounts for £1.1 Billion and employs 30,529 people
So, let’s say in 2020 the expectation of total revenue stayed the same, lockdown would have caused the total revenue to become £4.2 Billion and 160,406 employed and average artist revenue plummeting to £9163.64 estimated. We must also mention that there was a total of 11.2 million music tourists who went to live events in 2018, spent over £4.5 Billion and sustained 45,530 jobs.
Overall, the licensing market – of which ‘entertainment/character’ is the largest sector, accounting for $122.7bn worth of revenue – grew 3.2% from 2017 to 2018, to $280.3bn, with royalty income for rightsholders climbing almost 4% to $15bn. (Other sectors include corporate brands, fashion and sports, while the largest product categories are clothing/apparel, toys and fashion accessories.)
“The 2019 Global Licensing Survey drives home the fact that licensing continues to be a vital part of the consumer marketplace,” says Licensing International president Maura Regan, “and a versatile tool for brand owners and licensees to creatively build their businesses.”
With the promise of immersive experiences, being able to support the live gig industry with more realistic experiences was a way to help artists in the last year bear that burden. That with giving them other revenue making capabilities like ability to create subscriptions for their fans and merchandise, creating hybrid (online/virtual) combined with real life experiences, we can create massive opportunities in an immersive market predicted to be worth over $900 Billion by 2026 with our strength in AI, predicted to be contributing over $16 trillion to the global GDP by 2030
