BUSINESS
By Hamza Kazi Jay-Z once popularly said, “I’m not a businessman; I am a business, man” which perfectly captures the evolution of music artists as we forayed into the glorious 21st century. While the gold or platinum RIAA certification of commercial feats by artists holds an old-world charm, streaming numbers and Billboard figures have gained prominence. In this new millennium, the grammar and commerce of the music industry have undergone a significant transformation. Did I hear that right?: Music’s role in helping brands monetise The craft of music is not a monolithic entity anymore. It has successfully penetrated all major business models that have anything to do with sound. Music enterprising has evolved from elite patronage during the Renaissance period to a multi-source revenue stream for many stakeholders, including brands. Brand marketing models had an interesting journey of their own. From birthing jingles after the hegemonic wrath of the USA’s print industry to unique sonic branding, soundscapes provided brands with wider visibility. Amidst the existing tried-and-tested strategies, embedding original tracks by popular artists has transformed the marketing experience. One of the most popular examples is the Super Bowl ad by Pepsi in 2004. It starred three pop icons—Beyoncé, P!nk, and Britney Spears —as gladiators, making the audience in the Colosseum thump their feet to Queen’s ‘We Will Rock You’ . The incorporation of this 1977 hit song boosted the brand’s image, and the song, apart from being iconic, became an integral part of the brand’s identity. In contemporary times, brands have employed strategies that will not only lead to wider visibility but higher conversion rates as well. One of them is collaborating with an artist or production house for in-video brand integration. The closer-to-home example is how boAT has made these integrations an essential part of their marketing gimmicks. Jasleen Royal and Dulquer Salman-starrer romantic ballad ‘Heeriye’ featured various boAT products. The video song did really well, and Jasleen came on board with boAT as its brand ambassador. An idea that was conceptualized by Dharma Cornerstone Agency and went on to become part of the marketing outreach for the brand. Another way to generate good conversion rates is by creating experiential IPs through music concerts. Zomaland, Barcadí NH7 Weekender, and others have curated sensory brand experiences to connect with their TGs, giving them a chance to engage with the brand in an interactive format. A win-win situation for brands and artists. Call my agency: Achieving fame, staying in game, and a whole lotta gain! Artists help brands achieve their marketing goals, while it is their management agencies that broker these deals. Agencies are an important bridge that helps artists maneuver through brand deals, booking, and inking important contracts. The agencies also assist in promoting the artists’ songs to a larger audience by negotiating sync deals. Without Prateek Kuhad’s talent managers, his global smash ‘cold/mess’ would not have been included in a Facebook ad campaign or on former US President Barack Obama’s summer playlist. A portion of the revenue generated by these artists through brand collaborations, sync deals, and streaming revenues contributes significantly to how these agencies monetise. HYBE Entertainment, the leading K-Pop giant, has resorted to cashing in on the global fanbase of artists and launched a superfan platform called WeVerse. The platform allows direct communication between the fans and artists while providing them with all official information with paid features like DMs. The platform boasts 10 million active users with artists like Ariana Grande, BTS, and others. Loyalties and royalties in my DNA: Artists’ balancing act of craft and commerce Artists, too, earn through various revenue channels like live, brands, synch, content, etc. In India , there are two traditional ways that an artist earns money from content. Firstly, an artist can earn a lump sum upfront fee with all rights surrendered, while working with a label. Secondly, an artist can also strike a revenue share deal with a label or distributor where they earn from royalties depending on how the songs perform. However, streaming has revolutionised the music-making and music-listening experience, opening new possibilities for artists. Digital streaming became a phenomenon after the game-changing Metallica vs. Napster case in 2000. After Napster was shut down, there was a growing fervour for a similar platform, and this is when Apple’s iTunes came into the picture. While streaming did become a pivotal part of an artist’s income, it is not the most lucrative mode of revenue for the majority of the artists. In the US, artists earn only 1/10th of the national industry revenue. One Spotify filing also revealed average per-stream payouts to be between $0.006 to $0.0084. The streaming platforms are only conducive for chart-topping artists like Beyoncé, Drake, Karan Aujla, and others. Live performances then become the most sought-after mode of revenue for the artists. The demand for live acts has spiked post-pandemic. BookMyShow reported that in 2023, around 13.5 million people attended 26,359 events. In the West, the ticketing giant Live Nation earned $22.7 billion in revenue in 2023. Brand collaborations and merchandising also comprise a significant part of artists’ revenue. In 2021, Lil Nas X caused a stir with the MV of ‘Montero’ . Around the same time, he also collaborated with a Brooklyn-based startup, MSCHF, to release limited-edition Satan Shoes which contained a drop of human blood. The 666 shoes were sold in a minute, proving it to be a beneficial deal for the artist. Music has emerged as a binding factor for brands, agencies, and artists, all of whom aim to amplify their reach. If brands and artists join forces for a collaboration, it can unlock new opportunities for them. Agencies possess the power to strategically place their talents in the industry to gain lucrative deals for both of them, resulting in handsome revenue. Artists have become multi-faceted brands themselves while driving substantial revenue growth as Jay-Z said rightfully, “Put me anywhere on God’s green earth; I’ll triple my worth” . The author is head of music, Dharma Cornerstone Agency (Views expressed are the author’s own and not necessarily those of Follow us on Twitter , Instagram , LinkedIn, Facebook None
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