Cory Doctorow in his post ‘12% of music industry revenues go to musicians‘ describes the business model of the music business. The title is made to get readers to react about how little that is. But the point developed frankly by Cory Doctorow in the post is that “The best part? 12% is an improvement. Before the internet came along, it was seven percent.”
Modern technologies and removing layers of intermediaries has thus created somewhat more value for artists. However, that remains comparatively little compared to modern forms of direct selling and live events. “Musicians have thus turned to touring as their main source of income nowadays. The strategic shift has paid off in some ways — but barely. ”
Of course, one of the issues is that the overall music industry revenue has diminished in the meantime, and thus finally musicians probably end up earning more or less the same.
Creatives and artists have always generated an ecosystem living off their art and it continues. Marketing and logistics still play a substantial part of expenses needed to promote creation and get it known. This will remain, unless the artist also takes charge of those aspects.
Still, we can watch as increased shares of value get to the creators. And this trend will continue.
