All About the Music Business

Music business can be a great major if that is the industry you want to be in. A regular business major would also be helpful in that industry, but a specific music business degree will relate the business concepts in a more “entertainment business” context.

Some artists own their own music, but in many cases – especially with mainstream, major artists – the record labels often have a major stake in all of the music. The labels will also retain ownership of the master recording rights of any music created while signed to the label. However, with the rise of independent artistry and the internet more and more people are able to retain ownership of their music.

The major transitions that took place in the music industry have completely changed the way things are done. Whereas before the year 2000 the majority of revenue made by labels and artists was based on radio play, live performances and album/single sales. With the rise of the internet and digital file sharing, sales of product plummeted. Then came the rise of streaming sites like Spotify and much of the revenues recovered, however physical sales are still miniscule in comparison to earlier eras. Streaming and the “home studio” also leveled the playing field for artists and there are more artists making a living in the industry than at any other point.

There are many streams of revenue that music companies can earn from in the modern entertainment industry. The biggest sources of revenue (not in order) are live performances + ticket sales, music merchandise, streaming royalties, radio royalties, sync placements in film/tv/ads, brand endorsements and other products like vinyl, cds and more.

There are many music companies (like distributors, publishing companies, record labels, venues, artist management, etc.) where you can get a job with business/marketing/finance/etc skills or education. But the music business is naturally a “go-getter” industry where people who start their own thing (management, artistry, business, etc.) can often find great success as well.