Introduction
Until recently, the only method to obtain the training required to begin a career in audio recording was through an organized apprenticeship system. Any meaningful employment now requires a higher level of training and education in music, media, and technology due to the influx of new technologies that have revolutionized the recording industry over the past few years and the opportunities new media presents for recording experts. This is true regardless of your entry level.
Current State of Finance and musical industry
The financial sector is a dynamic industry essential to the world economy. By 2021, the sector will have seen considerable growth in artificial intelligence, blockchain technology, and finance fields. The COVID-19 epidemic has also affected the financial industry, with many businesses turning to digital channels and remote working. However, the industry is still facing challenges related to regulatory compliance, cybersecurity threats, and changing customer expectations.
Due to the emergence of digital streaming services like Spotify and Apple Music, the music business has experienced considerable changes recently. While this has led to increased access to music for listeners, it has also impacted the traditional business model of the music industry. Record labels and artists are now exploring new revenue streams such as merchandise sales, live concerts, and brand partnerships. The COVID-19 pandemic has also impacted the music industry, with canceled or postponed live events and concerts. However, the industry has shown resilience and innovation by embracing virtual events and new technologies to connect with fans.
Copyright
Copyright is a legal concept that protects creative works, such as literature, music, and art, by granting exclusive rights to the creators or owners of such works. According to the World Intellectual Property Organization (WIPO), copyright “is a bundle of exclusive rights granted to the author or creator of an original work, including the right to copy, distribute, and adapt the work” (WIPO, n.d.). The purpose of copyright is to encourage creativity and protect the economic rights of creators, while also providing a framework for the fair use and sharing of creative works by others.
As modified, the Copyright Act of 1976 created copyright law in the United States, and the U.S. Copyright Office is responsible for its administration. The United States Copyright Office asserts that “Copyright is a form of protection grounded in the United States Constitution and granted by law for original works of authorship fixed in a tangible medium of expression” (U.S. Copyright Office, n.d.). Although the term of protection might vary based on the type of work and other criteria, copyright protection typically lasts for the author’s lifetime plus a specific number of years after their death.
Collection Societies license
Collection societies manage the licensing and distribution of royalties for copyrighted works on behalf of their members, typically artists, composers, and publishers. These societies play an important role in ensuring that creators are fairly compensated for using their works and that users of copyrighted works have access to the necessary licenses to use them legally. According to a recent article by Forbes, collection societies “are responsible for negotiating licensing agreements with music streaming services, radio stations, and other businesses that use copyrighted music” (Settimi, 2021). In the U.K., collection societies such as PRS for Music, PPL, and others play a crucial role in licensing and collecting royalties for using copyrighted music. These societies license music to various businesses and organizations, such as T.V. and radio broadcasters, online streaming services, and live music venues. According to PRS for Music, the U.K.’s leading collection society for music licensing, they “collect and distribute money for the use of musical compositions and lyrics on behalf of songwriters, composers, and music publishers” (PRS for Music, n.d.). They offer a range of licenses covering different types of music use, such as public performance, broadcast, and online streaming.
Pay per lead
PPL is a marketing and advertising model in which advertisers or businesses pay a commission or a fixed fee to publishers or affiliates for each qualified lead that they generate. Under the PPL model, advertisers only pay for leads that meet their specific criteria, such as geographic location, age, or interests. This can be a cost-effective approach to advertising, as businesses only pay for leads that are more likely to convert into paying customers. Under the PPL model, advertisers only pay for leads that meet their specific criteria, such as geographic location, age, or interests. This can be a cost-effective approach to advertising, as businesses only pay for leads that are more likely to convert into paying customers ( PPL, 2022).
Performing Rights Society license
If you want to use copyrighted music in your business, such as playing music in a restaurant, you must obtain a PRS license. The license allows you to play the music protected by copyright law legally and ensures that the creators of the music receive fair compensation for their work. The cost of a PRS license varies depending on several factors, such as the size of the venue, the type of music being played, and the frequency of music use. The license fee is calculated based on a percentage of the venue’s gross annual revenue and can be paid annually or quarterly. (PRS, 2022).
The MCPS
The Mechanical-Copyright Protection Society (MCPS), which has a service agreement with PRS, pays royalties to its members when their music is reproduced as physical goods like C.D.s or vinyl, streamed or downloaded, and used in T.V., film, or radio. MCPS is responsible for collecting money for those who own the copyright of musical works, including songwriters, composers, and publishers. Mechanical royalties may apply if a musical composition is streamed, downloaded, synced, or reproduced on a tangible item.
Rightsholders Membership
Before receiving royalties from one of these collecting organizations, a rightsholder must join one. PPL membership is free, compared to the one-time fees of £100 for songwriters and £400 for publishers charged by PRS and MCPS. After joining, copyright owners must enter information into the repertoires of the various collection organizations in order to provide licenses for their works. In cases when more than one contributor is eligible for royalties, the upload process enables the assignment of percentages of rights. Audio engineers are sometimes not entitled to royalties since they are frequently paid a specific amount to record the recordings.
The engineer could, however, occasionally be eligible for a modest amount of royalties from the copyright in the musical composition if they significantly contributed to the creative process. This might be the result of audio editing or creatively adding effects to a recording. As a result, it may be in the engineer’s best interest to sign up with PRS and MCPS; but, if the engineer is not paying royalties and employing well-known musicians, it is doubtful that the £200 needed to open accounts with each would result in any cash in the following years. So I will not join until there is a potential to get royalties.
The Recording Industry
According to Götting (2022), the exponential growth of streaming services has led to a more than 28-fold increase in music streaming revenues over the past ten years, surpassing physical formats by around 2017. Exceptional services like Spotify and Apple Music have contributed to this growth. The trend in music consumption is undoubtedly the monthly-paid streaming subscription. Before reverting to a modest degree of growth in 2021, physical formats, which had previously generated the majority of income, had been steadily declining from a peak in 1999. Despite this, they were still well behind the streaming behemoths by billions. In this competitive industry, getting a record contract is a surefire method to acquire top-tier marketing and promotion.
Best Recording Labels
In 2021, Universal Music Group (31.9%), Sony Music Entertainment (21.9%), and Warner Music Group (16.3%) will account for the majority of the market share held by record labels. (Dredge) 2022. A&R, which seeks musicians with the potential to sign with the label and track their artistic development after being signed, is responsible for most of a big label’s duties. They operate as the intermediary between labels and artists. In a typical exclusivity record deal, an artist has less direct communication with the label, less creative control, and a higher risk of going “unrecouped.” However, they also gain from huge marketing, larger recording budgets, and significant advances. 10% to 20% of the proceeds usually go to the artist.
Independent Recording Labels
Many musicians prefer to sign with an “independent” label due to some disadvantages of signing with a large company. Indie labels provide a higher amount of ownership to artists while offering less money for advances, recording, and marketing. Some musicians have entirely foregone the label and self-release their work because some so-called “indie” labels are divisions of more prominent music companies. This is a choice that is gaining popularity since artists keep complete control of their creations.
Distribution Deals
The firm enters into distribution agreements with retail establishments to distribute records, a standard option for self-releasing musicians. Musicians can choose to sign these agreements. More musicians are receiving help from artist services businesses like Ditto and AWAL to promote their songs. Major labels hire sound engineers or have them record in studios. Therefore audio engineers are involved in the music business at all levels. The majority of these engineers have been working in the field for many years and have developed to the point where they can collaborate with large record companies. The majority of studios provide ‘dry rental’ for space and will employ engineers on a full- or part-time basis. Instead of hiring an engineer from the studio, clients might rent the studio space solely; here is where the freelancing occurs.
Freelance engineers are a feasible choice for smaller labels or artists who are self-releasing music because they are typically fresh to the industry and may be hired for less than hiring a studio with their engineer. Engineers who work for themselves are frequently paid a fixed fee and do not get paid royalties.
The Publishing Industry
Another way to generate money in the recording business is through music publishing. Leasing and managing musical works for use in movies, commercials, and other kinds of media are the responsibilities of a publisher. A publisher’s duties include facilitating the usage of writers and songs through synchronization, establishing A&R departments to help the creative process, and providing administrative services for song registration and royalty collection. They have the authority to give licenses for using a song’s musical work on behalf of songwriters and composers, therefore exercising the copyright therein. Like a record deal, a publishing agreement pays an artist a cash advance and assigns rights to a portion of their future earnings.
The recording artist will get additional revenue after the advance is paid back. Because they have a portion of the rights to the musical piece, publishing corporations profit from music through PRS. The top three music label publishing businesses accounted for 59.9% of the industry in 2021 (Dredge, 2022). Major publishers are publishing organizations that are a part of several major record labels. Other publishers, such as smaller independent or associated ones, provide a range of publishing agreements, including single-song contracts, restricted assignments, and administration agreements without an advance.
The Live Performance Industry
Another significant area is the live industry. This sector finances live performances by holding concerts, gigs, tours, and festivals in various locations. Live performances enable viewers to witness their favorite or up-and-coming performers, generating income for venues through ticket and product sales. This market might be vital for more recent artists looking to develop a fan following and make a living. Music venues are essential parts of the ecosystem that makes up the music business because they give performers a platform to spread their music, gain fans, and advance to bigger venues and more expansive recording studios. Because selling tickets is their primary duty, promoters are significant players in this sector.
However, in order to choose lineups and promote events that would appeal to audiences, as well as to identify venues and use marketing strategies, their work also calls for an understanding of current trends. Internal promoters at many venues are aware of what the patrons want to see. The ongoing prospect of significant losses on concerts makes promotion one of the riskiest professions in the business. Agents, who find concerts and tours as well as coordinate sponsorships and marketing, and artist managers, who have a variety of duties to assist in developing the careers of their clients, are other positions in this sector.
Live audio engineers achieve the best possible quality, sometimes called sound technicians or live sound engineers. Their duties include setting up microphones and speakers for performances, conducting sound checks, and continuously balancing and mixing sounds throughout the performance. For a tour, some bigger touring firms may engage sound engineers, who will work each concert. Depending on the equipment given and the duration of the gig, engineers are typically paid a straightforward flat charge for their services. The regular charge for grassroots venues in London is £150 per gig, which often takes place over the course of an evening and lasts for about six hours. I want to follow this option because of my prior expertise in this field; more information is provided in the conclusion section on services.
The Role of an Audio Engineer
What precisely is an audio engineer’s job description as that is where I want to start my career? A person who deals with the technical elements of sound recording, mixing, and reproduction is known as an audio engineer. In studios, they collaborate with artists and producers while using their technical expertise to create the desired sound. There are several places where engineers can work, including music ensembles, recording studios, film studios, venues, theaters, and conference events, among others. Engineers are compensated in two ways: on a job-by-job basis, freelance engineers are paid a flat fee; permanent engineers are paid hourly; the U.K. government estimates that an experienced engineer’s income will be £50,000.
I am knowledgeable about the different areas of the music business and how to succeed in each one. However, only some of these sectors provide an audio engineer with a realistic chance to make a life. I plan to provide my talents in the recorded and live music industries. However, publishing is not a practical way to make money because an audio engineer only has a tiny portion of the copyright for composing and performing music under his name. I have put much effort into studying as much as possible while seeking a job in this potentially profitable field. I am seeking a loan for £7.075.61. The loan monies would be used for the following things, in that order:
These things make it possible to convert a space into a productive home studio for mixing and recording. Vicoustic acoustic treatment and Noisestop soundproofing alone make the room functional. High-quality recordings would be made possible by the Apollos and Patchbay, while Yamaha monitors would provide high-quality sound playback for mixing.
Services provided
Freelance engineering is the leading service I aim to offer to the recording business. Customers who hire dry studio space can access my freelance engineering skills. My understanding of the technical facets of recording would be most helpful to clients who wish to save money by forgoing studio space and their engineers. I want to charge a minimum of £150 for a recording session lasting six to eight hours because my experience is limited. I would charge an additional £20 per hour for sessions over eight hours.
With the help of the financing, I can also provide mixing as a service in the recording business. While many musicians choose to distribute their music independently, more and more are increasingly understanding the benefits of a professional mix performed by a mixing engineer, which produces a far better-sounding finished piece. Professional mixes are more likely to feature alongside other artists on playlists on streaming platforms like Spotify, giving an artist a great opportunity to expand their fan base. This professional sound helps musicians compete in a congested market. I plan to charge £150 per track for this service, a price I feel accurately reflects my level of expertise. However, it may go up over time as experience and inflation grow.
In the live industry, I want to provide live sound engineering services. I have handled on-stage live mixing and silent pits for a local rock band and live sound for a theater. I will be available for hire for gigs and corporate events, however owing to the limited live sound equipment I have, my introductory pricing for gigs will be £150, and my base rate for corporate events, where equipment is given, will be £200.
As an alternative source of income, I want to make myself available for session musician works as an alto and tenor saxophonist. I wish to register with PPL for free to get any future royalties since I could be a performer on master recordings. According to the Musician’s Union, my fixed rate for three-hour recording sessions is £130, which increases with session length. Any material that has to be recorded should be given to me at least four days before the session. (2022, Musicians’ Union) Based on this, I plan to provide live session work for between £120 and £150, depending on the length of the performance, maybe with clients I have previously recorded in the studio.
With the services, I have specified, a somewhat unskilled engineer will be unable to pay for housing costs and start making loan payments. As a result, as many individuals do to complement their early professions, I aim to work part-time as a teacher and lecturer. I want to work at a high school as a music technician or technology specialist. Four days each week, ideally. A forty-week study year and a wage of around £17 would yield an income of about £19,040, all of which would be utilized to pay living expenses.
Return on Investment
As said before, I can successfully produce a variety of revenue streams to help me repay the loan. As more individuals are satisfied with their job and are more likely to return for more work or promote me to others in the community, the amount of work will rise. My anticipated monthly costs, which include rent, food, and transport, come to $2000 per year, or $24,000 overall. Through a mix of teaching and the several services the loan will enable me to offer, I am sure that I will be able to return the debt in full over the course of two years.
I would have to provide 33 essential services in a year to cover my costs. Any further effort would go toward paying back the debt. I plan to work 1.5 jobs a week in the first year. I am Earning at least £11,700 annually. £4,960 would be needed to meet expenses, leaving £6,740 for repayment. This implies that I would still be obligated to pay £335.61 in year two, a sum that a foreseen rise in work would readily cover.
Please consider my loan request; the money will be utilized to build an adequate mixing and recording studio, generating income for a return on investment. I have successfully illustrated my knowledge of the music business and the numerous revenue streams. Finally, I have included a detailed plan for anticipated earnings showing that the loan can be returned within two years.
References
Savage, M. (2022). The global music market was worth $26 billion in 2021, BBC News. BBC. Available at: https://www.bbc.co.uk/news/entertainment-arts-60837880
Ruby, D. (2022) Spotify stats 2022 – (facts, data, infographics), demands. Available at: https://www.demandsage.com/spotify-stats/
Copyright, Designs and Patents Act 1988. Available at: https://www.legislation.gov.uk/ukpga/1988/48/contents
PPL reports a 12% increase in revenues in 2021 to £252.8 million (2022) PPL. Available at: https://www.ppluk.com/ppl-reports-a-12-increase-in-revenues-in-2021to-2528-million/
Big numbers PRS for Music: royalties, music copyright, and licensing. Available at: https://www.prsformusic.com/about-us/track-record/big-numbers
Götting, M.C. (2022) Topic: Music streaming, Statista. Available at:
https://www.statista.com/topics/6408/music-streaming/#topicHeader__wrapper
Perry, M.J. (2022). Animated chart of the day: Recorded music sales by format share, 1973 to 2021. Available at: https://www.aei.org/carpe-diem/animated-chart-of-theday-recorded-music-sales-by-format-share-1973-to-2021-2/
Dredge, S. (2022). Majors slightly increased their market share in 2021 – Music Ally. Available at: https://musically.com/2022/04/06/majors-market-share-in-2021/
Musicians’ Union (2022) BPI and M.U. Agreement for Session Musicians & Artists, The Musicians’ Union. Available at: https://musiciansunion.org.uk/workingperforming/recording-and-broadcasting/recording-agreements-rates-of-pay-andconsent-forms/bpi-agreement-and-consent-forms
Harrison, A. (2021). Music: The business. LONDON: VIRGIN BOOKS.
WIPO. (n.d.). What is Copyright? World Intellectual Property Organization. Retrieved from https://www.wipo.int/copyright/en/
U.S. Copyright Office. (n.d.). Copyright Basics. Retrieved from https://www.copyright.gov/circs/circ01.pdf
Settimi, C. (2021, March 10). What Are Collection Societies, And How Do They Work In The Music Industry? Forbes. Retrieved from https://www.forbes.com/advisor/entertainment/what-are-collection-societies-music-
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