2020, to put it mildly, was not a good year for the music industry. Many facets of the music industry were hit particularly hard. Most strikingly, revenue from live music plunged by 75%. For many artists whose primary source of revenue is from performing live, 2020 was a particularly brutal year. For many musicians, who were already struggling to make a living wage, 2020 was a major setback. My personal income from both performing live and from online sales all took a major hit in 2020. My income from performing live went to zero for most of the year, due to local lockdowns and regulations imposed due to Covid. My income from internet sales of music business related products, which I’ve used to supplement my income for over a decade, also declined pretty sharply in 2020. This downturn was primarily due to the overall downturn of the economy at large and the fact that the music industry and musicians, who are my primary demographic, were hit particularly hard economically due to the pandemic. The only revenue stream that I saw an increase in, over 2019, was licensing and publishing revenue. 2020 was one of the best years I’ve had in licensing in several years. I signed five new publishing and licensing deals for multiple songs in 2020 and earned consistent revenue from sync and performance royalties throughout the year. I’ve never been happier to be a musician involved in sync than in 2020. Although 2020 was a monumentally difficult year for the music industry, and how quickly things will rebound remains to be seen, there is reason for long term optimism. Goldman Sachs’s new “Music in the Air” report forecasts that, long term, the music industry is expected to grow in several key areas. Revenue from streaming is expected to increase by 18% over the next decade. In terms of live music, 79% of music fans have indicated they will return to seeing live music events within four months of restrictions on public gatherings being lifted. 74% of people polled also say they will continue to watch live stream concerts post-pandemic. “According to researchers, the pandemic will “accelerate the shift” from offline to online music, prompt more “reliance on social media and streaming for music discovery and promotion,” and up direct-to-consumer efforts in merchandising and live-streaming.” According to the “Music In The Air” study, “While user time spent may shift away from music streaming to other forms of entertainment in the short term, overall we believe the industry’s long-term growth outlook is intact, driven by the secular growth of paid streaming, growing demand for music content and live events, new licensing opportunities (e.g. TikTok), and positive regulatory developments,” the report finds.” The forecast is for the music industry at large to hit $142 billion in revenue by 2030, up 84% from $77 billion in 2019. Music publishing revenue actually increased 3.5% in 2020 over 2019 and is expected to continue to grow in 2021 and beyond. So, while 2020 was undeniably a really difficult year for the music industry and for most musicians, there are reasons to be cautiously optimistic about the future. Music isn’t going anywhere and one day, in the hopefully not too distant future, this pandemic and its negative impact on the music industry will be in the rear-view mirror. In the meantime, my humble opinion is that musicians should double down on what’s still working. Focus on things like licensing and publishing, that for the most part, have not been negatively impacted by the pandemic. Work on growing your catalog and repertoire and build connections and plant seeds now, so that you’ll see things come into fruition in the next few years. 2020 sucked for musicians, there’s no way to sugar coat it. According to a recent study conducted by Encore Musicians, 64% of musicians are considering quitting music altogether. I get it. We all have financial needs and making money from music is challenging even in the best of times, let alone during a pandemic. With that said, we won’t be going through this situation forever. As my research points to, long term forecasts for the music industry are optimistic about the future of the industry. If you can get through this, undeniably rough patch, there are better days ahead. This too shall pass. How were you impacted as a musician in 2020? What lessons have you learned? Were you able to find any silver linings? How optimistic are you about 2021 and going forward as a musician? I'd love to hear your thoughts and comments, the good, bad and the ugly.
6 Comments
1/5/2021 02:50:03 pm
In 1980 my state of Colorado was full of 4,5, and 6 nighter gigs. I had 10 booking agents calling me regularly. Cover musicians could lead a lower middle class lifestyle without having to promote, advertise, sell merch, or prospect. $100/musican pay was common at clubs,double that at private events. By 2019, those multi-night gigs had disappeared, often replaced by 3-bands-per-night gigs. The hundred dollar standard had not risen, and there was considerable downward pressure on that figure. The pandemic has simply accelerated what was already happening the past 4 decades. Many long-standing venues have closed. They were operating on momentum, but their now vacant spaces will be occupied by much more profitable businesses.
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Aaron Davison
1/5/2021 03:15:51 pm
As Dylan sang, "The times they are a changing!"
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Dan L
1/5/2021 03:25:58 pm
Great article, as always. My two cents: I took a risk with the church I had been working for part time, when they panicked in March and realized in person would be closed...and had ZERO options or tech for any online presence. I offered to help them create it all from scratch, and shifted directly to video and audio production for them, and while I miss playing music with my friends ( I am a jazz pianist ), it's been good to work weekly in my studio producing content ( videos, podcasts ). As we all know, studio work can be a very solitary experience, but that income has mostly served to replace lost income from the gig world for me. Plus I finally don't feel like a big dummy with cameras lol ( what's an fstop???) But seriously.....for me, my background in engineering and being a gearhead has finally paid off!
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Aaron Davison
1/5/2021 03:49:05 pm
Great job at pivoting and adapting! There is no choice other than to adapt and roll with the changes at the moment.
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1/6/2021 07:26:44 am
Great article Aaron! Even if a little bittersweet. I went from performing as a jazz pianist/composer at the start of 2020 and thinking myself primarily as that, to as of writing this, feeling like I'm wearing an entirely new (or atleast definitely - "expanded") hat as producer/mixer getting into the world of licensing. I can actually thank this crazy year for forcing me to pivot like this. Even though production was something i always dabbled in, it took this year for me to fully embrace this new role for myself and find my voice in it, not to mention take it seriously as a path for generating income. Luckily i discovered your fantastic website HTLYM, Gary Gray's amazing content, and a few other resources and mentors that have really helped me make that shift, for which i'm very grateful! So as much as i miss the days when i could just show and play somewhere to make a check lol, I'm excited about the new challenge and possibilities that await as i stick to this new path and continue to grow as a producer. Cheers! ;)
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Aaron Davison
1/6/2021 08:13:13 am
As hard as this year has been for so many musicians, there's always an upside if you're willing to dig in and do the work. Glad to hear you're discovering new hats to wear and you're rising to the challenge.
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