About Mark Mulligan

Music Industry analyst and some time music producer. Vice President and Research Director with Forrester Research

Take Five (the big five stories and data you need to know)

Apple ups its artist analytics but do artists care? Kobalt and Spotify both helped reshape the music industry’s understanding of what role data should play and how it should be presented. Apple announced its Apple Music for Artists (AMFA) is coming out of betawith a whole host of cool dashboards and analytics that dive down to city level. Powerful stuff indeed. The problem, though, is not data scarcity but data abundance. Overwhelmed by dashboards and tools, artists and their managers are becoming victims of data paralysis.

Streaming video endgame:Paradigm-shifting announcements don’t come along often and when they do it is not always obvious that they are so important. This is one of them: Disney announced it will bundle its forthcoming Disney+ with Hulu and ESPN+ all for just $12.99.For a tiny fraction of a cable subscription, Disney is giving the average family everything it needs from a TV package. The bundle simultaneously competes with Netflix and the traditional pay-TV companies Disney relies upon for carriage fees. This is go-big-or-go-home for Disney and is perhaps the biggest, boldest move yet in the streaming wars.

 

Star Wars – too much too soon: When Disney bought Lucasfilm for $4.1 billion in 2012 it was a statement of intent, particularly following the 2009 acquisition of Marvel. Marvel prospered with the almost TV-episode frequency of releases; the Star Wars franchise less so. With toy sales down, Galaxy’s Edge underattended, and disgruntled fansCEO Bob Iger cited ‘Star Wars fatigue’ and committed to slowing the release schedule. The temptation to saturate markets to compete in the attention economy can be hard to resist.

Pluto drives Viacom growth: Viacom’s ad-supported streaming service Pluto TV hit 18 million active users at the end of July, up from 12 million at the start of the year– with its connected TV user segment growing 400% year on year. Growth is so fast that 50% of ad inventory remains unsold. Nonetheless, coupled with Viacom’s Advanced Marketing Solutions (AMS) division US ad revenues returned to growth (6%) in the quarter while total Viacom revenues were up 6% also, to $3.35 billion. Maybe you can teach an old dog new tricks.

Sports bubble? What sports bubble? With pay-TV companies losing subscribers and overspending on drama to hold off Netflix, budgets for sports rights are going to feel the pressure. But in the English Premier League (EPL) the mantra is make hay while the sun shines. Total transfer spending before the pre-season deadline reached £1.41billion which was fractionally below the £1.43billion record set in 2017. More than half the clubs broke their individual player transfer records. The market will likely get even more heated when streaming players start increasing their spend, but if they get a market stranglehold they will do what they do best: ‘bring efficiencies into the supply chain’, which is west coast code for squeezing suppliers. Be careful what you wish for sports leagues.

Backing Both Horses: The Thinking Behind Tencent’s UMG Stake

As long expected, Tencent is poised to take a stake in Vivendi, reported to be 10%. While the news might not be surprising, there are a number of important factors at play:

  • Tencent fast-tracked? Given that various entities stated their interest in investing in UMG, Vivendi appears to have fast-tracked Tencent. This might well be because Tencent showed the most appetite for paying a premium, and therefore Vivendi wanted to close the deal so as to create a price that subsequent bidders would have to work with.
  • Betting on both horses: The investment community is increasingly viewing music as a battle between rights and distribution, with Spotify versus UMG as the publicly traded vehicles through which the contest can be backed. Tencent already secured around 5% of Spotify via its Tencent Music Entertainment subsidiary back in 2017, and it is now securing 10% in UMG. Tencent is backing both horses in the race.
  • Investing within constraints: Back in 2016, concerned about capital flowing out of the country,Chinese authorities implemented restrictions on Chinese companies investing in overseas entities. This has compelled Tencent to focus on minority stakes rather than outright acquisitions. The UMG stake fits this investment framework.
  • Outgrowing China: Tencent had a 74% market share of the Chinese music subscriptions market in Q2 2018. While growth in the market is solid, it is slowing. Tencent will recognize that there is only so much remaining near-term opportunity at home. Being a part of the global market is a way of ensuring it is not constrained by its domestic marketplace.
  • Proxy wars: Back in 2018 I argued that Spotifyshould be wary of Tencent setting itself up as a competitor in markets where Spotify is not yet established (Russia, sub-Saharan Africa, some Asian markets etc). Tencent may still do this, and this may be part of the preparations, but for now ByteDance looks the most likely candidateto pursue this strategy.
  • Look east:While streaming is giving an old industry new legs in the west, China’s music industry is effectively being built from scratch. As a consequence, it doesn’t have decades of irrelevant baggage. This is seen in China’s music apps. Western streaming is all about monetising consumption; China’s isabout monetising fandom. If the Western music industry was born today, it too would be putting social at its core. Many argue that apps like WeSing can only really work in China – but I remember people saying the same about mobile picture messaging when i-mode was getting going in Japan nearly 20 years ago. Just look at TikTok’s global success if you need any further convincing.

Take Five (the big five stories and data you need to know) August 5th 2019

Spotify – steady sailing, for now: Spotify hit 108 million subscribers in Q2 2019 – which is exactly what we predicted. Spotify continues to grow in line with the wider market, maintaining market share. Subscriber growth isn’t the problem though, revenue is. As mature markets slow, emerging markets will keep subscriber growth up but with lower APRU will bring less revenue. Spotify needs a revenue plan B. If podcast revenue is it, then it needs to start delivering, fast.

Fortnite World Cup: It can be hard to appreciate the scale of transformative change while it is still happening. A few years from now we’ll probably look back at the late 2010s as when e-sports started to emerge as a global-scale sport in its own right. Epic Games’ inaugural Fortnite World Cup pulled in 2.3 million viewers on YouTube and Twitch, was played in the Arthur Ashe Stadium and the singles winner picked up more prize money ($3 million) than Tiger Woods at the Masters and Novak Djokovic at Wimbledon.

Facebook trying to do an Apple, and an Amazon: With 140 million daily users of its Watch video service, Facebook is positioning to become the video powerhouse it always looked like it could be. Now it is trying to follow in Apple and Amazon’s footsteps and make itself a video device company too. Currently in talks with all its key video competitors, Facebook wants to add streaming to its forthcoming video calling device. That would leave Alphabet as the only tech major without a serious video household device play (unless you count Android TV).

Ticking time bomb?: Having recently hit 120 million users in India, TikTok clearly has scale, but it also has a rights problem, calling in the UK Copyright Tribunal to resolve a dispute with digital licensing body ICE, which characterised TikTok as being ‘unlicensed’. This feels a lot like the days when YouTube was first carving out licenses. Sooner or later TikTok is going to need a licensing framework that rights holders will sign off on. Matters just took a twist with TikTok poaching ICE’s Head of Rights and Repertoire. It’ll take more than that though to fix this structural challenge. 

We’re competing with Fornite: Yes, more Fortnite….fresh from World Cup success and on the eve of the Ashes, the English Cricket Board said ‘There’s 200 million players of Fortnite…that is who we are competing against.’ Do not mistake this for a uniquely cricket problem, nor even a uniquely sports problem. In the attention economy everyone is competing against everyone. And while Fornite might be the go-to for middle-aged execs bemoaning attention competition (yes that means you Reed Hastings) the trend is bigger than Fortnite alone, way bigger.

State of the Streaming Nation 3.0: Multi-Paced Growth

MIDiA Research State of the Streaming Nation 3Regular followers of MIDiA will know that one of our flagship releases is our State of the Streaming Nation report. Now into its third year, this report is the definitive assessment of the streaming music market. Featuring 16 data charts, 37 pages and 5,700 words, this year’s edition of the State of the Streaming Nation covers everything from user behaviour, weekly active users of the leading streaming apps, willingness to pay, adoption drivers, revenues, forecasts, subscriber market shares, label market shares, tenure and playlist usage. The consumer data covers the US, Canada, Brazil, Mexico, Australia, Japan, South Korea, Sweden, Denmark, Germany, Austria and the UK, while the market data and forecasts cover 35 markets. The report includes the report PDF, a full Powerpoint deck and a six sheet Excel file with more than 23,000 data points. This really is everything you need to know about the global streaming market.

The report is immediately available to MIDiA clients and is also now available for purchase from our report store here. And – for a very limited-time offer, until midnight 31stJuly (i.e. Wednesday) the report is discounted by 50% to £2,500. This is a strictly time-limited offer, with the price returning to the standard £5,000 on Thursday.

Below are some details of the report.

The 20,000 Foot View: 2018 was yet another strong year for streaming music growth, with the leading streaming services consolidating their market shares. Consumer adoption continues to grow but as leading markets mature, future growth will depend upon mid-tier markets and later on emerging markets. Disruption continues to echo throughout the market with artists direct making up ground and Spotify spreading its strategic wings. Utilising proprietary supply- and demand-side data, this third edition of MIDiA’s State of the Streaming Nation pulls together all the must-have data on the global streaming market to give you the definitive picture of where streaming is.

Key findings: 

THE MARKET

  • Streaming revenue was up $X billion on 2017 to reach $X billion in 2018 in label trade, representing X% of total recorded music market growth
  • Universal Music consolidated its market-leading role with $X billion, representing X% of all streaming revenue
  • There were X million music subscribers globally in Q4 2018 with Spotify, Apple and Amazon accounting for X% of all subscribers, up from X% in Q4 2015
  • With X% weekly active user (WAU) penetration YouTube dominates streaming audiences, representing X% of all of the WAU music audiences surveyed

CONSUMER BEHAVIOUR

  • X% of consumers stream music for free, peaking at X% in South Korea and dropping to just X% in Japan
  • X% of consumers are music subscribers, peaking in developed streaming markets Sweden (X%) and South Korea (X%)
  • Free streaming penetration is high among those aged 16-19 (X%), 20-24 (X%) and 25-34 (X%) while among those aged 55+ penetration is just X%
  • Podcast penetration is X% with pronounced country-level variation, ranging from just X% in Austria to X% in Sweden

ADOPTION

  • 61% of music subscribers report having become subscribers either via a free trial or a $1 for three months paid trial
  • Costing less than $X is the most-cited adoption driver for music subscriptions at X%
  • Today’s Top Hits and the Global Top 50 claim the joint top spot for Spotify playlists among users, both X%
  • As of Q1 2019 there were X YouTube music videos viewed one billion-plus times, of which X were two billion-plus view videos and X were three billion-plus

OUTLOOK

  • In retail terms global streaming music revenues were $X billion in 2018 in retail terms, up X% on 2017, and will grow to $X billion in 2026
  • There were X million music subscribers in 2018, up from X million in 2017 with Xmillion individual subscriptions

Companies and brands mentioned in this report: Alexa, Amazon Music Unlimited, Amazon Prime Music, Anchor, Anghami, Apple, Apple Music, Beats One, CDBaby, Deezer, Deezer Flow, Echo, Gimlet, Google, Google Play Music, KuGou, Kuwo, Loudr, MelOn, Napster, Netflix, Pandora, Parcast, QQ Music, RapCaviar, Rock Classics, Rock This, Sony Music, Soundcloud, SoundTrap, Spotify, Tencent Music Entertainment, Tidal, Today’s Top Hits, T-Series, Tunecore, Universal Music, Warner Music, YouTube

The Frank Ocean Days May Be Gone, but Streaming Disintermediation Is Just Getting Going

Aaron_Smith
At the start of this month Apple struck a deal with French rap duo PNL. PNL are part of a growing breed of top-tier frontline artists that have opted to retain ownership of their masters. In our just-published Independent Artists report (MIDiA clients can read the full report here)we have sized out the label services marketplace, and when it is coupled with artists direct (i.e. DIY) the independent artist sector was worth 8% of the entire recorded music business in 2018.

While that number may sound relatively modest, it is growing fast and represents the future. Traditional label deals are not disappearing, but they are becoming just one component of an increasingly complex recorded music revenue mix. This is the industry context that enables initiatives such as Apple’s PNL deal and both Spotify and Apple backing Aaron Smith, who incidentally is signed to artist accelerator Platoon, which is a company that Apple acquired in December 2018.

Independent artists open up new opportunities for streaming services

When Apple did its exclusive with Frank Ocean back in 2016it caused such an industry backlash that UMG head Lucian Grainge banned his labels from doing exclusive deals and the movement seemed dead in the water. If there was any doubt, Spotify kicked up so much label ill will when it launched its Direct Artists platform that it officially shuttered the initiative in July. However, now we are seeing that there many more ways to skin the proverbial cat. It is perfectly possible to disintermediate labels without having to actually disintermediate them. Doing an exclusive with an independent artist or giving him / her priority promotion is doubly effective for streaming services as:

  1. Record labels have no right to complain because independent artists have just the same right of access to audiences as label artists
  2. The more exposure independent artists get, the more their market share will grow, which will lessen record labels’ market share, which makes it harder for them to resist and easier for the streaming services to start making bolder moves down the line

Ambiguity will be the shape of things

Even this structure plays into the traditional view of labels versus the rest. The new truth is much more nuanced. For example, when Stormzy was duetting with Ed Sheeran at the Brits, signed on a label services deal to WMG’s ADA, was he a Warner artist or an independent artist? He was, of course, both. The evolution of the market will be defined by progressively more of this ambiguity, which will give streaming services equally more ability to not only play to these market dynamics but to stress-test the boundaries. The simple fact is that streaming services will become ever-agnostic with regards to artists’ commercial partnerships and in turn they will become a more important component of the value chain. Apple Music did the PNL deal because they had much more commercial flexibility dealing with an independent artist than dealing with a label artist. At some stage, labels will have to decide whether they want to revisit the exclusives model. Without doing so, they may not get a seat at the new table.

New MIDiA Artist Survey – Take Part!

Firstly, thanks to all of you who took part in our artist survey last year. If you did so, you should by now have received the link to the free report. If not, email us at info@midiaresearch and we’ll get it to you.

We are now fielding a new artist survey and we’d like you to take part! This time we are diving into the tools and services that artists use and what they think about them. All respondents will get a free copy of the final report when it is published.

You can complete the survey by following this link

Independent Artists: The Age of Empowerment

MIDiA - Amuse Independent Artist ReportMIDiA is proud to announce an exclusive new report in conjunction with Amuse – Independent Artists: The Age of Empowerment. The report is based on a global survey of independent artists that we conducted earlier this year, with respondents from all of the world’s continents. The full report is immediately available for free download here. Here are some of the key themes and findings of the report:

The science fiction author William Gibson once said, “The future is already here, it just isn’t evenly distributed.” He wasn’t writing about the rise of independent artists, but he could have been. We are seeing the beginning of what may be the biggest paradigm shift in the music business in decades, but as with all big changes, we won’t appreciate the true magnitude of it until further down the road when more of the pieces have fallen into place.

In the old music business, artists had a limited number of choices when planning their careers. They could sign with a record label and hope they were the one in ten that made it, or they could treat music as a hobby, contenting themselves with playing the local bars and clubs. Then a UK rock band did something in 2001 that little known to them would act as the genesis for an entire new way of being a recording artist. After having split with record label EMI, Marillion decided to ask their fans to pre-order an album they hadn’t made yet. More than twelve and half thousand fans did so and with the resulting hundreds of thousands of dollars they recorded Anoraknophobia. Music crowdfunding was born. Marillion had just shown the artist community that there was a new way to be a successful recording artist.

Fast forward 18 years and artists now have more tools, services and choices than at any previous time in the history of recorded music. An entire industry has evolved to enable artists to plot their own unique paths through the fast-changing music industry. From finding a vocalist, through remote mastering, to funding, marketing and distribution, artists now have the tools at their disposal to create their own virtual record labels.

Forget digital service provider (DSP) disintermediation; artist disintermediation is the real threat

Record labels often worry about streaming services disintermediating them, but they should be more concerned about artists disintermediating them themselves. With all of the tools and services at their disposal, artists have the ability to create their own bespoke labels. In this ‘label as a service’ world, record labels have to define a new role for themselves, one in which artists will place ever greater focus on retaining creative and commercial independence. Signing a traditional record label deal is now just one option among many for artists.

Independent Artist Data MIDiA Research

  • Culture first, cash second. Artists’ definition of success is very much culture first, then cash. They are looking for respect and recognition first and foremost. With this respect and recognition, they can become viable touring acts with the chance to earn loyal fan bases.
  • Labels are not a prerequisite.Artists now view labels very much as one possible means to an end. Less than a third of label artists consider it important to get signed to a record label, while for independent artists (i.e. those without record labels) the rate rises to a little over a half.
  • Earnings are the biggest obstacle. It is just as well that artists take a culture first, cash second attitude as most artists should not expect to earn a living from music without something close to divine intervention. Nearly three quarters of independent artists earn less than $10,000 a year from music, and average incomes are also low even for signed artists.
  • Artists’ income streams vary widely. Streaming income, along with earnings from live performances, make up the majority of artist revenues today. For independent artists, streaming is now their primary source of income at 30%.
  • Signing to a label is not enough for artists’ financial security. Being signed to a label often does little to ease an artist’s financial woes. Overwhelmingly, both independent and label artists do not feel that they earn enough from music to not worry about their financial situation.
  • Don’t give up the day job: Most artists have plural careers. Whether signed to a label or not, over two thirds of artists feel they will have to keep up other work alongside making music in order to make ends meet.
  • The age of artist empowerment has arrived. Despite the challenges of a music career, the vast majority of artists now feel they have more control over their careers than ever before. With their choices both increasing and improving, nearly two-thirds of artists have a positive outlook about their career paths.
  • Artists want to listen. The modern day artist has flexibility and freedom to make choices – but how do they make the right choices? While the vast majority of artists do not want to lose creative control, most of them are open to influence and advice about their creative direction.

Download the report for free now!

Free-to-Attend Event: Monetising Fandom

monetisingfandomspeakers2x2Join us on Wednesday 17thJuly in central London for MIDiA’s next free-to-attend event: Monetising Fandom in a Fragmented Content Landscape. Regular attendees of our events will know that they combine great new data and analysis with insightful panels and a mix of attendees not quite like at any other event, with representation from across multiple industries.

Next week is a big one. We will be showcasing a brand-new stream of data for MIDiA: audience fandom. With audiences fragmenting across so many different platforms, formats and content genres, the attention economy not only puts pressure on every form of content, it also necessitates a complete rethink of how we measure success. Pre-streaming, success was much easier to understand: album sales and TV ratings were nice, simple-to-measure metrics. Now though, audiences are spread across a host of different platforms, sometimes consuming, sometimes simply engaging with social or promotional content. It all contributes to the artists’ brand impact, and in the era of the attention economy, extended brand reach is more important than it has ever been.

In this event we are going to showcase our latest audience insight data on music artists and TV shows, and we will present our case for an entire new way of measuring and understanding success.

The event itself will include a keynote presentation from Mark Mulligan, followed by a panel discussion featuring representatives from TikTok, ATC, Kobalt and Spirit Media.

Follow this link to sign up (fully-refundable deposit required).

For those of you who are not in London, a live stream will be made available on our Facebook page at 18.30 BST.

The Artist Marketing Playbook Needs Rewriting

The whole essence of fandom is being turned upside down. An emerging crop of streaming-native artists is finding its audience in a much more targeted and efficient way than via the traditional music marketing. Instead of blowing a huge budget on carpet bombing TV, radio, print, online artists and their teams are finding their exact audiences, focusing on relevance and engagement rather than reach and scale.

The traditional model is great at creating household brands but so much of that brand impact is wasted on the households or household members that are not interested in the artist. Niche is the new mainstream. Targeted trumps reach. But too many label marketers fear that unless they use the mass media platforms, they will not be able to build national and global scale brands. They might be right, at least in part, but this is how the future will look and new marketing disciplines and objectives are required. Here’s some brand new data to show why.

midia index music fandom

Since Q4 2016 MIDiA has been tracking leading TV shows every quarter for awareness, fandom, viewing and streaming. Since the start of 2019 we have been doing the same for artists, with viewing swapped out for listening. These metrics provide a rounded picture of an artist’s full brand impact and consumption, while the ratios between these metrics give a unique view of just how individual artists are performing and of the impact of their respective marketing strategies. Later in the year we will be feeding this data into Index for Music,a unique new dashboard tool to combine with data from social platforms, streaming, searches, reviews and other metrics that create an end-to-end view of artist impact. We have already built our Index for Video tool which you can find out more about here.

In the above chart, using the consumer data component of Index, we have taken a contiguous sample of the five artists that represent the mid-point of each third of the rankings (i.e. top, middle and bottom) for two of these ratios:

  • Fandom-to-streaming, which we call Streaming Conversion
  • Awareness-to-fandom, which we call Brand Conversion

The results show some very clear artist clusters with clear implications for artist success and marketing strategy (remember, these are ratios not rankings of how well streamed or popular they are):

Streaming Conversion

  • Rising streaming stars: These artists have twice as many people streaming them as they do fans. These artists are largely younger, frontline artists that are building their careers first and foremost on streaming platforms. These are artists that have not yet built their fanbases but are being pushed hard by their labels on streaming and elsewhere. Their listening is being driven by promotional activity. Pusha-T is the exception, a much longer established artist.
  • Established artists: These artists are largely well-established artists whose streaming audience penetration correlates with their fanbases. Their listening is largely organic. Dua Lipa is the exception, still relatively early in her career but already with an established fanbase driving organic streaming.
  • Low-streamed superstars: These are artists that built their careers in the pre-streaming era and while are household names, have streaming audiences smaller than their fanbases, not having managed to migrate large shares of their audiences to streaming

 

Brand Conversion

  • Heritage superstars: The majority of people who know these big heritage acts like them. In some ways brand conversion is an easier task for such artists than frontline artists. As they have been around so long, it tends to be the very bests of their catalogue that people know. The fact Queen outranks the Beatles is testament to the way in which the biopic Bohemian Rhapsody has created new relevance for the band.
  • Big brand artists:This eclectic mix of artists are – Julia Michaels excepted – well established artists that have benefited from years of label marketing support, with about half of all people that know them liking them.
  • Over-extended brands: One of the most important changes wrought by streaming and social is that fanbases no longer need to be built via mass media. However, big artists, especially major label ones, still rely upon mass media to become global stars. The result is a lot of wasted marketing budget. In this group, which is dominated by Hip Hop artists, more than half of the people who have been made aware of the artists do not like them. The marketing dollars spent on reaching those people has not converted.

We will be diving much deeper into this data in a forthcoming MIDiA client report and also at our next free-to-attend (depose required) event in central London: Managing Fandom in a Fragmented Content Landscape. Join us at the event to get a sneak peak of MIDiA’s artist data and our Index tool. All attendees will get a free copy of the presentation. In addition to the data key note there is a panel featuring people from Kobalt, TikTok, ATC and more to be confirmed. Sign up now, only limited places remain!

See you there!

Big Machine (Inadvertently) Just Did a Promo Ad for Label Services Deals

Taylor-SwiftThe sales of Taylor Swift’s former label Big Machine Records to Scooter Braun has resulted in an ugly spat that has been played out very publicly. First Braun enthused about acquiring a ‘brilliant’ company and the global ‘opportunities’.Then Swift responded with an open letter saying that Braun had ‘stripped her of her life’s work,before Big Machine’s Scott Borchetta responded saying he had given her the ‘opportunity to own her masters’. The feud clearly has some distance to run but the issues of ‘who got what text message when’ are not the big deal here, the real deal is the big deal.

Whether she likes it or loathes it, Taylor Swift’s catalogue is Big Machine’s asset

Late last year Swift left Big Machine to sign a long-term deal with Universal Music that was most likely a label services deal. At the time she said it was ‘incredibly exciting’ to own her masters. But, however good her UMG deal might be, she is now in a position whereby her recordings are being sold to someone she’d much rather not have ownership of them. In her post she calls this a ‘worst case scenario’. From Big Machine’s perspective, it simply couldn’t sell the company without having either Taylor Swift or her recordings on its balance sheet. Without one of those, the company’s value would have been much lower. Swift may not like the feeling of being someone else’s asset but that is the very nature of what happens when an artist signs a traditional label deal.

Artists now have unprecedented commercial choice

Back in the early 2000s the Beatles wentto court to try to regain ownership of their master recordings because of a dispute with their label. Fast forward to now and we have another massive pop act angered at not having control of their own creation. At one level the world has not changed much, but on another it has done so, and dramatically so. The fact that Swift signed a label services type deal with UMG shows just how much more choice artists have with the type of deals they sign, whether that be label services, joint ventures, distribution deals or combinations of all three. Artists have never been so empowered and so educated. Nor have they ever had so many commercial options, from doing direct distribution with a CDbaby or Amuse, a label services deal with an AWAL or BMG or simply going direct to fans with platforms like Bandcamp.

Big Machine just highlighted the downside of traditional label deals

By allowing the dispute with Swift to become so public, Big Machine has just inadvertently done a promo campaign for label services deals. The more that the media is awash with stories like this, the more that artists will be considering their options. This does not however mean that all artists will be turning down traditional masters deals in favour of label services deal. A label services deal normally means trade-offs. A record label is going to get less, so in return it is going to give less back. Artists have to balance out factors such as smaller advances, lower royalty income, higher risk and bearing costs. For an artist that has spent years building to the point of signing a deal, a fat advance and guaranteed marketing spend will often be a more appealing prospect. Especially when you consider that successful artists will expect recording income to be just a minority of their total music income.

Artists increasingly use labels to build their own artist brands 

In this context, the record label becomes a marketing asset to the artist, a tool with which to become famous enough to ensure that all the other income streams (live, merch, publishing, brand partnerships etc.) kick in. In this era of empowered artists, more artists will be making an informed decision that matches their priorities. If they prioritise creative independence and control, then label services will make most sense. If they value building a large-scale audience fast, they may opt for a traditional label deal. Or they’ll take something in the middle. The bottom line is that there is no standard approach anymore. Any artist signing a deal now that finds themselves five years from now complaining about not having control of their masters will, to put it bluntly, only have themselves to blame. It will have been their choice.