It’s from Vice News and there is so much good stuff in the 5 minute segment.
Brent was offered a major record deal and turned it down. The highest offer was a $250K advance and a $300K recording budget. A lot of people would have taken the offer and become slaves to a system designed to favour the record label. But he turned them down, because the terms bothered him.
He looks at the money from a 100% pot. So when the label is offering him an 18% royalty rate, what is happening to the other 82% of monies earned?
If the artist makes a million dollars in gross, the label will get $820K and the artist $180K. Suddenly, it makes the advance and recording budget look like small change. But the label will not share any of the gross with the artist. They will discount the gross into a net and then share it. And from the net profit, the label will recoup the advance and the recording budget.
So Brent and his manager invested $30K of their own monies to record the debut album.
They then went on a 3 month tour using streaming data to lead the way. Streaming has changed everything. An artist can be a moderate successful indie artist with a few million streams on a few songs. It will not pay much in streaming royalties, but when you take into account the streaming data by city, you can then organise tours based on the data.
“Artists have to be smarter and they have to tour more and they have to do more to make sure fans come”
The lawyer in the segment said the above line. The old plea of “putting in your blood, sweat and tears” into your new music doesn’t cut it anymore with the audience.
Having a million followers on Facebook or Twitter doesn’t mean you have a million fans. I’ve seen Sebastian Bach post something like, a million plus followers on Facebook and only 10,000 people purchased the record. It’s old school, one sale = one fan thinking. Social media gives artists a way to connect and engage with fans. That’s it. That’s all it does. Dave Mustaine is trying to get to a million followers on Twitter. Why? For what reason and if he does get to a million followers, how do you connect and engage with them and turn them into concert ticket sales? A quick look at his posts and he gets comments from less than 30 people at a time.
In January 2018, Brent made $25K from music streaming services like Spotify and Apple music. His team mines the data from those streams to find out exactly where and when a show will sell out, spending $18 a day on ads to target those cities.
The data tells them were the demand is in the market and they use the streaming data to estimate how many tickets they can potentially sell. They look at the analytics of their top 50 markets and spend the money on ads on those markets.
Spotify’s data also highlights the listeners and super fans, city by city.
Super fans are fans of the artist who have streamed the music for 45 days in a row. For example in Philadelphia, Brent has 13,600 listeners and 3,186 super fans. They used this data to target ads in Philadelphia, sold out the venue and earned $3,880 in revenue. In Baltimore, there are 10,000 listeners and 5,743 super fans. Again, they targeted their ads to the city, sold out the venue and earned $5K in revenue. After 17 tour stops and royalties from song placements they walk away with $30K a month. Management takes 20%.
Streaming data also showed strong fan bases in Europe and they sold out shows in London, Paris and Berlin.
There is a reason why Trivium are selling out show after show across the US, Canada and Europe. There is a reason why Machine Head are selling out shows. There is a reason why Papa Roach are selling out shows. Streaming is a game changer.