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Music Business Models
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Record Label
A business that produces and releases music recordings. They may also handle marketing, distribution, and rights management.
Publishing Company
A business that deals with the rights and royalties of songwriters and composers. They license compositions for use and collect royalties.
Music Distribution
The process of getting music from artist to consumer, traditionally through physical or digital sales channels, now including streaming services.
360 Deal
A business model where the label provides financial support for various artist activities (recording, touring, merchandise) in exchange for a percentage of all revenues.
Merchandising
The practice of creating and selling branded products related to an artist or band to generate additional revenue.
Direct-to-Fan Sales
Artists sell their music, merchandise, and other products directly to the consumer, often via their own website or through services like Bandcamp.
Touring
Live performances that generate revenue through ticket sales, often the most significant source of income for performing artists.
Synchronization Licensing
Licensing of music for use in various media formats like television, movies, advertisements, video games, etc.
Crowdfunding
Raising small amounts of money from a large number of people, typically via the Internet, to fund music projects.
Live Streaming
Broadcasting live performances over the internet, often monetized through advertising, subscriptions, or paid access.
Patronage Model
Support from fans or sponsors to fund an artist's work over time, often operating through platforms like Patreon.
Performance Rights Organization
An entity that protects the performance rights of songwriters and publishers and collects performance royalties on their behalf.
Fan-funded Music
Music projects funded by fans prior to production, usually through a rewards-based model.
Music Licensing
The act of granting permission for the use of copyrighted music to user for a fee.
Artist Management
A service provided by professionals who manage the day-to-day business affairs of an artist's career.
Concert Promotion
The process of organizing, marketing, and producing live concerts or tours.
Digital Aggregator
A service that distributes digital content, like songs and albums, to online stores and streaming platforms on behalf of artists or labels.
Subscription Streaming
A model where consumers pay a recurring fee for unlimited access to a digital music catalog.
Brand Partnerships
Collaborations between musicians and brands for mutual benefit, including sponsorship deals, endorsements, or co-branded content.
Music Production Company
A company that produces music for clients, handling the recording process, arrangements, mixing, and mastering.
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