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Music Business Models

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360 Deal

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A business model where the label provides financial support for various artist activities (recording, touring, merchandise) in exchange for a percentage of all revenues.

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Music Licensing

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The act of granting permission for the use of copyrighted music to user for a fee.

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Live Streaming

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Broadcasting live performances over the internet, often monetized through advertising, subscriptions, or paid access.

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Concert Promotion

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The process of organizing, marketing, and producing live concerts or tours.

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Publishing Company

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A business that deals with the rights and royalties of songwriters and composers. They license compositions for use and collect royalties.

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Brand Partnerships

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Collaborations between musicians and brands for mutual benefit, including sponsorship deals, endorsements, or co-branded content.

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Patronage Model

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Support from fans or sponsors to fund an artist's work over time, often operating through platforms like Patreon.

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Performance Rights Organization

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An entity that protects the performance rights of songwriters and publishers and collects performance royalties on their behalf.

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Record Label

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A business that produces and releases music recordings. They may also handle marketing, distribution, and rights management.

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Touring

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Live performances that generate revenue through ticket sales, often the most significant source of income for performing artists.

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Direct-to-Fan Sales

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Artists sell their music, merchandise, and other products directly to the consumer, often via their own website or through services like Bandcamp.

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Artist Management

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A service provided by professionals who manage the day-to-day business affairs of an artist's career.

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Crowdfunding

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Raising small amounts of money from a large number of people, typically via the Internet, to fund music projects.

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Merchandising

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The practice of creating and selling branded products related to an artist or band to generate additional revenue.

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Digital Aggregator

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A service that distributes digital content, like songs and albums, to online stores and streaming platforms on behalf of artists or labels.

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Synchronization Licensing

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Licensing of music for use in various media formats like television, movies, advertisements, video games, etc.

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Subscription Streaming

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A model where consumers pay a recurring fee for unlimited access to a digital music catalog.

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Music Distribution

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The process of getting music from artist to consumer, traditionally through physical or digital sales channels, now including streaming services.

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Music Production Company

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A company that produces music for clients, handling the recording process, arrangements, mixing, and mastering.

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Fan-funded Music

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Music projects funded by fans prior to production, usually through a rewards-based model.

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