Why Physical Products Make You Money
In the digital age, many artists believe they should exclusively release their music for streaming, and that CD’s just don’t sell.
Well, it seems resurgence is underfoot, as CD sales in the US increased by 21% in 2021. This is the first increase we’ve seen in 17 years!
There’s no better time to remind your fans how to support their favorite artists by purchasing physical merchandise.
Why should artists offer a physical CD to their fans?
- It puts the artist in the financial driver’s seat. No waiting to get paid!
- It’s a collector’s item.
- It’s packed with lyrics, images, and information about the artist.
- It creates revenue.
- It allows fans to be part of something special.
- The fans own the songs forever, without having to pay for each stream.
- It supports the artist for their hard work, songwriting, pre-production & recording costs.
- It creates a sustainable industry that can grow and thrive for years to come!
How much does an artist receive from an average streaming subscription?
The average person listens to 18.4 hours of streaming music per week, with an average song running three minutes and 17 seconds.
That’s 336 streams per week, 17485 streams per year.
With annual fees around $134.28 and royalties paid of $12.24 of that $134.28, less than 11% of the money generated goes to the artists (this is nearly half of a standard licensing agreement).
89% of your subscription supports the platform, big business, and not the artist.
We spoke with Karen Wood (File Under Music) a veteran label owner, who mentioned she is still waiting for the distribution of royalties from streaming platforms for her artists from 2019, and physical distributors are 6 months behind.
That’s a long time to cover costs while you are waiting to get paid!
By purchasing physical merchandise at live events, or online from artist’s official social media pages and websites, fans put more money in their favorite artist’s pocket.
50-60% of the purchase price will go to the artist, compensating them for their hard work.
To put it into perspective:
A CD that is sold for $10.00 – $20.00 at an artist’s live event, online store, or social media pages is worth 14,285 – 28,571 streams!
A Tee-shirt sold for $25.00 is worth 35,714 Streams!
A USB with 3 albums, Videos, and an image gallery sold for $60.00 is worth 85,713 streams!
Having fans purchase a physical product – whether a USB, CD, Sticker, Vinyl Record, Tee Shirt, Hat, or Hoodie can lead to financial freedom for artists and their brands!
However, physical products are the real workhorse to delivering sustainable revenue. Just ask the Ramones, KISS, Metallica, or any successful artist!
Reach out to us anytime for an expert opinion, were always here to help!
Cheers!
Kelly
