Study finds 75% of artists lose money when they release music
A new study has found out 75% of artists lose money when they release music after paying for promotional costs.
The research has been carried out by Pirate. They surveyed over 1,000 producers, live musicians, and artists who use their recording studios in the United States, and the United Kingdom. Their study discovered that “75% of music creators were out of pocket, and over half had taken a social media detox to cope.”
91% of the artists who participated in the survey promoted their music independently and didn’t use a label or manager. Meanwhile, 75% of those who pay to promote their music spend more than their revenue from streaming and sales.
Dan Davis, Head of Community at Pirate, said: “As an artist doing your own promo, it’s both harder and easier in the social media age. Platforms reward a constant stream of content which takes a lot of work, the payoff is that you can build your own audience rather than just trying to break through gatekeepers.”
They also explored how social media is used as a promotion tool. Pirate discovered that 54% of artists primarily use the platforms for promoting their music, and as a result, 51% have taken a break from social media for their mental health.
Davis added: “Seeing artists take time off social media is a really positive sign that more creators are prioritising their mental health. For a lot of musicians in our studios, music is on top of full-time or part-time jobs; it’s important to take breaks from work, music and everything else that comes with being a musician.”
Additionally, it was recently announced that Spotify now have over half a billion people are using their platform on a monthly basis. However, Spotify also reported a net loss of $284 million (£232m) in the first quarter of 2023. Average revenue per user also fell by one per cent to $4.77 (£3.85).
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