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When it comes to selling a CD, that really resonates with the musician
Musicians earn only a fraction of what the buyer pays for the music CD on a CD. Because normally several parties are involved in the sale of a CD: The label, the dealer, GEMA and the sales department want to be paid. The band Bodi Bill reports to the radio station on3 how much money they actually earn from a CD. The production of the CD and its packaging will initially cost between EUR 0.50 and EUR 0.90. In addition, 19 percent VAT is (still) due, the dealer receives 25 percent and 21 percent has to be paid for sales. In addition, there is a further percentage to GEMA, which must be deducted from the sales price. The Mixing and Mastering website even reports 35 percent that go to retailers and 32 percent that the label receives. According to this calculation, only seven percent of the sales price remains for the artist. In addition, musicians have to make a percentage of the purchase price as a contribution to the artist’s social security. What ultimately remains for a musician from selling a CD is in cents or low euros. If you want to support musicians more by buying CDs, you can buy the CD directly from the band or the artist, as in this case there are no dealer costs.
However, CDs are sold less and less these days, and the German music industry has declined significantly in recent years. The German music industry has only been recovering somewhat since 2019, thanks to audio streaming.
This is what musicians earn through music streaming services
Large music streaming services such as Spotify, Apple Music and YouTube offer their users music streaming. However, voices have been heard in the past that labels do not pay their musicians well through streaming. Chip got to the bottom of this and shows statistics that show how many streams a musician needs on which streaming platform to earn one euro. A song on YouTube therefore has to be viewed 1,612 times to earn the musician one euro. On Amazon Music there are 277 streaming clicks and on Spotify 254. Musicians earn slightly better with Deezer, Apple Music and Napster, with Deezer they need 174 streams, with Apple 151 and Napster only 59 streams to earn one euro.
The Guardian reports that Spotify paid its labels and publishers $ 0.006 to $ 0.0084 in 2015, of which the artist received $ 0.001128 from the label. So you can imagine how many streams a song has to receive in order for the artist to earn the minimum wage at all.
What do musicians really do for a living these days?
A rethink has therefore taken place in the music industry. Since musicians can usually only earn a good salary via CDs and streaming services as superstars, other sources of income have established themselves in the music industry. Sponsoring, merchandising, appearances in TV shows, concerts and the like represent the new lucrative income opportunities for musicians.
Finanzen.net editorial team
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