The business of music
MAKE OR BREAK: TO MAKE MONEY, VARIOUS ASPECTS ARE CRITICAL Changes have been widespread and are constant.
Understanding the business of the music industry can make or break a band, engineer, producer or solo performer. Because this is what puts food on the table, ensures longevity and could be the parachute that prevents a hard landing. More than almost any other creative industry, the music business has changed rapidly and radically in the past few decades.
It underwent a sustained evolution with digital platforms reshaping how music is produced, distributed and consumed. Buying physical copies of music like CDs, vinyl and DVDs have been relegated to the annals of history. “Online streaming platforms have facilitated greater access to music from around the world. Listeners can discover and explore a diverse range of artists and genres from different cultures and regions,” said Thando Makhunga, managing director of Sheer Publishing Africa. “This globalisation of music has led to increased cross-cultural collaboration and exposure for artists as well as greater opportunities for international fan bases, which is best illustrated by the growth of Afrobeats and Amapiano consumption in Europe and the US.
“The fastest growing markets are now in non-English language territories such as South America and Asia, which is an indication of the future of the industry,” she added.
This is the backdrop against which Sheer Publishing Africa, one of the largest publishing businesses on the continent, forged a partnership with the Academy of Sound Engineering (ASE). Makhunga is front and centre of an initiative that focuses on teaching the ins and outs of publishing.
“Many artists tend to overlook the business side of music, focusing almost exclusively on creation and performance.
However, understanding copyright law, publishing rights and how to monetise these rights is crucial for any artist aiming for sustainability and success in this industry.”
Navigating the jungle of music rights, which include publishing rights, mechanical rights and performance rights, each covering a different dimension of music use and monetising it, is at the heart of what she will be teaching.
In South Africa, music copyright encompasses publishing rights and is managed by the South African Music Rights Organisation (Samro), covering composition aspects like lyrics and melodies, mechanical rights handled by the Composers, Authors and Publishers Association (Capasso) for music reproduction and distribution, and performance rights also overseen by Samro.
Digital rights, for online distribution via platforms like Spotify and YouTube, are administered by Samro and Capasso, ensuring fair digital use compensation.
Master rights, related to sound recordings and typically held by record labels, allow for the exploitation of recordings across various formats.
This system ensures fair compensation for artists, composers and publishers across different media.
It’s a lot to take in – and the partnership between Sheer and ASE plans to bridge the knowledge gap by integrating industry expertise into the academy’s curriculum.
“We’re looking to do more than just lecture. We want to provide students with real-world applications and insights that they can directly apply to their careers,” said Makhunga.
The shift from physical media to digital platforms over the past few decades can be a double-edged sword for artists.
While digitalisation has democratised access to music and opened new markets for artists, it has also posed challenges, particularly in ensuring fair compensation, she noted. Yet the opportunities presented by the digital age are unprecedented, including the ability for artists to reach global audiences and market their music more directly. But again, this requires an understanding of the business end, more so than ever before.
There is no doubt that the music business can still be very lucrative but it remains a fickle industry. “It depends on various factors such as market trends, technological advancements and individual talent.
“A complete artist who is a producer, songwriter, performer and has commercial appeal for brands and is actively touring can capitalise monetarily in all these areas.
“Artists should also look beyond traditional income sources like live performances,” she added.
Opportunities in merchandise sales, sync licensing and social media platforms offer additional revenue streams and ways to engage directly with fans.
“Technology has also empowered independent artists to build direct relationships with their fans.
“Platforms like social media, e-mail newsletters and crowdfunding sites allow artists to engage directly with their audience, bypassing traditional intermediaries.”
She said this direct-to-fan approach allows artists to cultivate a loyal fan base and generate revenue, reaching audiences without the need for a record label or distributor. But looping back, it requires far more business savvy to realise and capitalise on an artist’s talent.
Fastest growing markets in non-English areas