The document summarizes key findings from a survey of over 5,000 US musicians regarding their revenue sources and branding strategies. It finds that: 1) Merchandise and branding only provides a small percentage of income for most artists, around 2% on average. 2) While artists have opportunities to engage their brand through various means like sponsorships and fan funding, widespread participation in these activities is difficult. 3) Successful artists are increasingly strategic about leveraging their brand, whether through dedicated merch teams or limited edition products. 4) For classical and jazz artists, brand engagement beyond music is still evolving as most focus on their artistic purpose over commercial opportunities. 5) Corporate sponsorship and fan

1. The New Power Trio
Bands, Brands and Revenue
Kristin Thomson • Future of Music Coalition
Sunday, January 29, 2012

2. Sunday, January 29, 2012

3. Individual musiciansʼ
earning capacity.
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4. Data collected through:
• in person interviews
• financial case studies
• widely distributed online survey
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5. Over
5,000
US-based musicians, performers and
composers completed the survey.
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6. hours
40% spend more than
36 per
week
performing, composing, teaching or working on their craft.
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7. 42% earned
ALL
of their personal annual income from music.
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8. Primary genres for
survey respondents: Classical
Jazz
Rock/Alt-Rock
Pop • Composer • Singer/songwriter
Folk • Indie • Americana
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9. Brand can include:
Merchandise sales Acting
Fan club income Product endorsements
Persona licensing Corporate sponsorships
Ad revenue Grants
YouTubeʼs partner Fan funding
program
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10. POINT 1
Merchandise and branding is
only relevant to a small number
of US-based musicians.
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11. Apportioning music income
1. Musical compositions
2. Sound recordings
3. Performances
4. Session work
5. Merchandise
6. Teaching
7. Other
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12. Income from merchandise
In aggregate, income
from merchandise
Range by
genre
from
0.6% to 6.6% 2% sales accounted for
about 2% of
respondentsʼ revenue.
N = 5371
Jazz: 0.6% Classical: 0.6% Country: 2.2% Hip Hop: 4.9% Rock: 6.6%
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13. Changes in revenue from merchandise
over past five years
Decreased Stayed same Increased Donʼt know Not applicable
7.5 11.3 7 1.5 72.7
0% 25% 50% 75% 100%
Percent of respondents N = 4072
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14. Changes in revenue from merchandise
over past five years
Decreased Stayed same Increased Donʼt know Not applicable
7.5 11.3 7 73% of respondents: “not applicable”
0% 25% 50% 75% 100%
Percent of respondents N = 4072
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15. POINT 2
Artists have many other brand-
related opportunities, but
widespread participation is difficult.
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16. Income from “other” revenue sources
Income from “other”
revenue sources
7% accounted for about 7%
of respondentsʼ revenue.
N = 5371
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17. Deriving income from brand
Grants
Fan funding
Corporate sponsorships
Acting
Web ads
Endorsements
Persona licensing
Fan club
0% 2% 4% 6% 8% 10% 12%
Percent of survey respondents who have received some income from these activities
in past 12 months. More than one answer allowed. N = 5371
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18. POINT 3
Artists are increasingly
strategic about their brand.
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19. DEDICATED MERCH TEAM
“We have a dedicated merch
guy now and he makes a big
difference...”
" " " " " " " " " " " " " " " " – US rock band
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20. LIMITED EDITION MERCHANDISE
“Coming to the shows, having one
of those shirts that only 200 people
have, they love feeling like theyʼre a
part of something special.”
– Ben Weinman, The Dillinger Escape Plan
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21. LEVERAGING BRAND
“...I think corporate America
understands the influence of rap
music and is using it to help
promote their products...”
– Jini Thornton, business manager for high profile
hip hop artists
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22. POINT 4
For jazz and classical artists,
brand engagement is evolving.
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23. BRAND IN NONCOMMERCIAL WORLD
“[pursuing licensing or branding
opportunities] would be a fun thing
to do, but it takes away from our
main purpose: to promote the artist
with orchestras or with presenters.”
– US classical manager
Sunday, January 29, 2012

24. BRAND IN NONCOMMERCIAL WORLD
“Weʼre very aware that we exist in a
niche. We need to bring people into
the niche and deepen our relation-
ship with them, rather than flinging
ourselves all over the place.”
– classical choral chamber group
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25. POINT 5
Corporate sponsorship and fan
funding fills in where labels may
have dropped off.
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26. CORPORATE SPONSORSHIP
“For us, corporate sponsorship
of videos has been a total
revelation...”
""""""""""""""""" – US rock band
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27. FAN SUPPORT
“Artists have to feel no shame
about asking their audiences and
their fans for support and money....”
"""""""" – US musician/performance artist
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28. The Takeaways
1.Not all musicians are able to leverage
their brand.
2. For musicians and bands who can
leverage brand, they benefit from being
flexible, open-minded, strategic, and
unafraid to involve their fans.
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29. Future ARS data releases
By role By location
Composers and songwriters Music cities
Touring musicians
Session and freelance players
By experience or training
Emerging artists versus old guard
By genre Conservatory or music school
Jazz players and composers graduates
Classical players and composers Label relationships
Organizational affiliations
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30. For more information
http://futureofmusic.org/ars
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31. Sunday, January 29, 2012