With the rise of streaming services such as Spotify, artists have been struggling to receive fair pay for their music. Despite having millions of streams, many artists are only receiving a fraction of a penny per play, leading to a significant decrease in their lifetime earnings. However, a new trend is emerging that provides artists with a way to increase their profits: direct-to-consumer (D2C) business.
D2C business allows artists to bypass record labels and streaming service providers (DSPs) by selling their music directly to their fans. This eliminates the middleman and ensures that artists receive a larger share of the profits generated by their music. Additionally, it provides artists with greater control over their music and brand, as they can connect with their fans directly and offer unique merchandise and experiences.
One of the key benefits of D2C business is that artists can receive a higher royalty rate per stream. For example, music service Bandcamp pays back 80%-90% of its revenue to rights holders, while Spotify only pays a fraction of a penny per stream. By selling their music directly, artists can increase their earnings significantly, as they receive the entire profit from each sale.
Another benefit of D2C business is that artists can sidestep the limitations imposed by record labels and DSPs. Labels often control the distribution of an artist’s music, and DSPs can dictate the royalty rate that artists receive. By going D2C, artists can bypass these limitations and have complete control over their music and how it is distributed and monetized.
Several indie artists have already profited from D2C business by controlling their own distribution. For instance, Amanda Palmer, a singer-songwriter and performer, has used her D2C business model to sell albums, merchandise, and concert tickets directly to her fans. Another example is singer-songwriter Neko Case, who used her D2C business model to release her music independently, bypassing record labels and DSPs.
In conclusion, D2C business provides artists with a solution to the problem of low royalty rates. By bypassing record labels and DSPs, artists can increase their profits, gain greater control over their music and brand, and connect with their fans directly. While D2C business may not be the right solution for every artist, it is a valuable option that is worth considering.
In today’s digital age, where music consumption is dominated by streaming services, it’s important for artists to consider new business models that will allow them to earn a fair wage.
DIGITVL, founded by artist and tech entrepreneur Mwosa, is a decentralized sales channel (DSC) that leverages the power of web3 technology to create a seamless, secure, and decentralized platform for artists to reach their fans. With DIGITVL, artists like Mwosa, Joel Bleu, and LAYDB are able to bundle their music with other unique items like event tickets, NFTs, physical products, and more, creating a new level of engagement with their fans.
In the traditional music industry, artists often struggle to get their fair share of royalties and profits. Labels and digital service providers (DSPs) often take a large cut of the profits, leaving artists with only a fraction of what they deserve. DIGITVL changes all of that by providing artists with a direct line to their fans, cutting out the middleman and giving artists complete control over their distribution and monetization.
DIGITVL operates on a web3 infrastructure, which makes it possible for artists to receive their payments directly and in real-time. This not only reduces the transaction costs associated with traditional payment methods but also provides artists with greater security and transparency in the process.
For artists who are looking to break free from the limitations of traditional music distribution and monetization methods, DIGITVL offers a unique solution. With its powerful technology and easy-to-use platform, DIGITVL is empowering a new generation of artists to take control of their careers and reach their fans in new and innovative ways.
So if you’re an artist looking to take your career to the next level, sign up to DIGITVL today and join the revolution of independent artists taking control of their distribution and monetization. With DIGITVL, you’ll be able to reach your fans directly and build a successful career on your own terms.