[Music]
back when people were buying physical
CDs there was a ton of money to be made
for the labels and for the artists but
the rise of streaming services like
Spotify Pandora and Apple music have
changed the industry in 2017 music sales
revenue was just 60 percent of what it
was in 1999 I'm super convenient but I
do not pay well every time one of their
songs is played on Spotify artists only
earn around one tenth of one cent cool
that'll cover my rent for the next three
seconds see Jordan this is why I support
our local record store streaming is
killing the music industry actually
that's not true at all streaming may be
screwing the artists but the labels have
figured out how to make Bank off of it
when early internet services offered
illegally downloaded music everyone took
a hint but then the labels started
cutting contracts licensing their entire
catalogs for streaming and streaming is
now their biggest source of revenue
while their profits aren't quite back to
what they were in the 90s they're
bouncing back at a rate of 1 billion
dollars per year the only problem
artists are not getting a fair cut of
those deals even Beyonce one of the
biggest musicians in the world only
makes 10 percent of her money off of
music sales yeah but she tours all the
time that's how a real artist makes
their living by getting out in front of
the fans actually unless you're as huge
as Beyonce it's pretty much impossible
to make any money off a touring either
the top 40 live acts can make up to 80
percent of their income from touring but
everyone below the top 40 is lucky if
their tours even break even the tour was
a huge success now after we recoup all
the production travel and crew expenses
you owe the label 20 grand what since
it's so hard to make money off of record
sales or touring now many mid-level
artists these days can only earn a
living by taking endorsement deals or
appearance fees you guys look great now
just a few small adjustments Jessie J
has deals with vitamin water drink
pitbull endorses sheets energy strips
say aah and tons of artists get paid
just to show up at events and not too
much dancing you need to save your
energy for Justin Bieber's cousin's
yacht christening
[Music]