When you think of musicians and the topic of royalties, your mind probably instantly begins to consider singers and bands with international fame who are reaping the rewards every time their big hit is played.

While this is an understandable trail for your mind to walk, it isn't perhaps the 'real' story behind royalties and why they mean so much, especially for those who are not signed up with major record labels.

Royalties are earned from the usage and listening of music, and the amount an artist can make varies wildly, depending on how well-known the musician, singer or band are.

Making Money from Royalties

The use and playing of music on various channels will result in payments for those involved in the production and performance of the relevant track. The sums made from these can vary wildly, and also, the amount they can make is dependent on the deals the artists may have with the label that may own the rights.

In 2021 these royalties most commonly come in the form of sums made from the playing of their tracks on streaming services, and while the revenue generated from these avenues is higher than it was in recent years, it's still way below how much they would have made from the sales of physical music.

Dwindling Sales of Physical Music

Ever since the emergence of Napster (remember them?), sales of physical music via vinyl, CDs and other mediums have dropped massively. Naturally, this has affected established artists as well as those who have looked to make a living from their musical talents.

While mainstream artists can generate substantial revenue from downloads of their tracks from reputable sources, they lose most of the money they could make due to people easily finding the track from illegal sources. In other words, it's fair to say that the internet has in many ways ruined this revenue stream.

The Reliance on Live Shows

This drop in sales of physical music led to something of a renaissance in live shows and the value of the income they derived for artists. Often, and this goes for the most well-known bands in the world, money earned from gigs and tours far exceeded any other sums made by them. Add to that the sale of merchandising and other additional profits they can recoup from these shows.

This is doubly true of struggling acts who used live shows to earn a fraction of a living from their music. These concerts helped to bring them exposure and the additional possibility of being 'spotted' by an A&R representative from a record label.

Sadly, this one consistent form of revenue generation has been decimated by the Coronavirus pandemic, where guidelines and restrictions have meant that concerts have been shelved for the best part of 18 months.

Royalty-Free Music Has Now Become a Steady Source of Income

One form of 'new' income that has become something of a lifesaver for unsigned acts comes in the form of royalty-free music. Artists who are not well-known can now make a strong level of income by aligning themselves to royalty-free music providers and can also secure a great level of exposure at the same time.

Royalty-free music providers offer users great music via large databases and libraries for a competitively priced subscription fee that can be used for whatever purpose they require.

Perhaps a user wants to get a great track for their latest commercial, or maybe a filmmaker is looking for songs that will suit their latest thriller. They can now avoid all the hassle and expense of using music from established acts (who may not even consider allowing their use anyway) and instead provide a rich, diverse range of quality music.

This is all available for a one-off rate and means that a subscriber can sidestep any of the potential obstacles around accidentally using music that is not licensed to them.

Exposure AND Revenue

Singers, musicians, and artists who offer their music via these services secure a good solid income from the use of their work. Often, when used for content that is viewed by many, they can attract the attention of a wider audience, and of course, that same A&R man who would usually have heard them at a show.

For example, this can work to their advantage from using their song to back up the latest TikTok dance craze; there are plenty of examples of relatively unknown acts suddenly becoming chart-topping successes due to their music being used on a viral video.

Even though live shows are starting to happen again, albeit, with much smaller audiences, there is now the very real opportunity for musicians, bands and singers to play their music to a massive audience without leaving their home studios. This is one of the major benefits that can come from being featured by a royalty-free music provider.

The musical landscape has always been a shifting, unpredictable one, and the advent of the web and various technological leaps have made it all the more unsteady.

So, in many ways, royalty-free music offers a real boost for those who are seeking to earn a living from their talents, and it's an opportunity that many are gladly taking with both hands.