Royalty Free Music - A Digital Disruption that Can Help Artists

Early issues, such as illegal downloading and music-sharing have been somewhat resolved, although piracy will never completely be eliminated. The other issue, disputes over streaming services and how much in royalties should be paid to both artists and labels, is still very much alive. And more issues and questions arise as the Internet continues to be a major source of music for millennials and younger generations.

Some may think that the Internet has only brought about negative changes for the music industry, but that is not the case. While the Internet has certainly made music accessible to everyone, and that can be bad for artist revenue, it has also been an amazing venue for musicians to establish a following and to become globally known without the backing and help from a major label. So, there are two sides to this "coin" of music and the Internet, and one new disruption, digital royalty-free music that may change how music is promoted and sold.

The Negative Side

While consumers love being able to access music faster, easier, and cheaper (and even steal it), the music industry, both labels and artists, are struggling to get enough revenue. Every time music changes hands, royalties are paid – to the artist, to the label, and to others who have had a part in that recording. When money is not paid, all of these people lose. There have been some famous legal cases of music piracy, and they have helped. And iTunes and Amazon are now offering really cheap singles downloads – customers can purchase a single song rather than buy the entire album, and they are much happier with this option.

Another recent development has been streaming services and Internet radio, such as Pandora and Spotify. They make their money with paid subscriptions or advertising and pass some of that off in royalties to artists and labels. Still, those artists and labels complain that payments are not nearly enough and nowhere near what they can earn when consumers buy individual songs outright. These issues are not going away anytime soon, and, in many instances, they have forced artists to conduct many more tours than they would perhaps like to do.

The negative consequences of the Internet for music have all been reaped by artists and labels, not consumers, who seem to be enjoying cheap (and sometimes free) music.

The Positive Side

Recently, artists have determined that they can take control of their music and its distribution – the Internet has made this all possible. The same Internet that has reduced revenues for artists has also enabled them to market themselves without the need to use the traditional "music industry machine" – agents, labels, promoters, etc. – all of whom get their cut of royalties.

Now, artists can go straight to the consumer, with their own websites, their own sales, and their own promotions all over social media, and achieve a global following. As well, many labels have discovered their new artists through those artists' own media efforts.

While self-promotion may not have the reach that the music industry giants may have, the artist does not have to share any profits. And the Internet has made recording and sharing so easy, brick and mortar studios are no longer needed.

Needless to say, this trend has led to the rise of a lot of web-based Indie recording companies who openly solicit and promote artists, taking a far lower cut of earnings than traditional labels and promoters. So even musicians who do not want to promote themselves can find cheaper methods to do that.

Enter Digital Royalty-Free Music – A Great Positive Option for Artists

Royalty-free music has been around for a long time. Basically, it means that the purchaser buys a license to use a piece or a set of music and can then use that music for a specific purpose for as long as s/he wants. DJ's for example, if they are honest, will buy licenses for entire sets of music which they can then use at wedding receptions, etc. Businesses can buy licenses for specific music and use it on their websites, potentially reaching tens of thousands of listeners. Artists have been paid a small royalty from these license fees, and there have been a lot of companies selling licenses so cheaply that the artists get very little.

Now, however, web-based royalty-free companies, such as Music Screen, are sprouting up, which put the artists in complete control of their music. While these companies sell licenses for music use, it is the artist who determines the license fees and artists who decide when and if they want to allow totally free use of their music to humanitarian or charitable organizations.

Artists are free to create the music they love; they are also free to contract directly with a royalty-free company, name the conditions, and have their music promoted without the traditional labels and promoters who take such a big cut.

What all of this means for the traditional recording industry remains to be seen. If nothing else, its business model will have to undergo some changes, and that will mean adapting to the new ways that music is now delivered to consumers. The same shift is now being made by book publishers and TV providers – the smart companies will find new models, adapt, and continue to make money. Those who insist upon the traditional models will experience demise. One thing is for certain – artists are now taking the reins and taking steps to control their own futures and revenues. While Internet music disruptions began with negative consequences for artists, that same Internet may now prove to be more friend than foe.