Informative Presentation Outline

Informative Presentation Outline

Name: Amaya Ashe

Specific Purpose Statement: By the end of my presentation, the audience will understand the three main avenues for music

artists to generate revenue in the music industry.

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I. THE INTRODUCTION

A. When it comes to music, do you consider yourself a consumer or a creator?

B. The International Federation of the Phonographic Industry (IFPI) reports that in 2019, the average individual

across the globe consumed 18 hours of music each week (“Consumer Research,” n.d.). Consequently, music is

an important part of our everyday lives.

C. Music has always been a part of me. I have been playing piano for 13 years and flute for about 8 years. I also

love to sing, dance, and listen to music. In general, I find the music industry an interesting concept, so I

performed extensive research to learn more about it.

D. Music artists often complain about making little money off their music even though the music industry is a

lucrative business.

E. My goal today is to teach you guys about the main avenues in which music artists make money. Those avenues

include the distribution of an artist’s music, touring, and selling merchandise.

F. Let’s kick this off by breaking down how money is made from an artist distributing their music.

II. THE BODY

A. The money made off an artists’ music stems from the song’s copyrights.

1. When a song is created, the ownership to that creative work is known as copyright. Every song is further

divided into two separate copyrights: the composition and sound recording, or the lyrics and melody versus

the actual audio recording of the song (Wang, A. 2018.). Ownership to the audio recording is split between

the artist and their record labels, while ownership to the lyrics and melody is split between whatever

songwriters and publishers are involved (Wang, A. 2018).

2. Money is then made from that artists’ song once it is sold, embedded in other media, or monetized in any

other way (Wang, A. 2018). But remember, the artist may only see a small portion of the money from their

song if multiple people own copyrights.

Transition Statement: Now that you understand the breakdown of making money from a song, let’s talk about touring.

B. Touring is the most important revenue stream for music artists today because it is where the most money is

made, and often guaranteed to make you more than streaming or merchandise sales (O’Connell, E. 2018).

1. When an artist gears up to go on tour, there are a lot of expenses to consider. First, money must be dished out

in order to book venues to perform at. Many artists also put a lot of money towards production costs. Take

Chris Brown as an example. His tour stage consists of dancers and a very intricate set layout. Chris Brown

must pay the production crew to set it up at each location and pay to train every dancer. Another portion of

the touring budget consists of expenses racked up along the road, which includes hotel fees, food, and travel.

2. Even though there is a long list of expenses included to tour, music artists still make their money back and

even more because of ticket prices, the amount of people purchasing tickets in one location, and the amount

of locations in general. Most artists also schedule tours domestically and internationally.

Transition Statement: Besides touring, the final stream of revenue we are going to discuss comes from merchandise.

Informative Presentation Outline

Name: Amaya Ashe

C. Generally, music artists are extremely well-rounded, talented individuals who make money from side

businesses, such as selling merchandise.

1. With the introduction of social media, it is way easier for artists to promote merchandise to a wide audience.

Artists are selling makeup, perfumes, clothing lines, alcohol, etc.

2. An interesting example of an artist tapping into merchandising comes from Chance the Rapper. When he was

younger, he was always seen rocking some type of hat (Schwartz, D. 2017). Therefore, it was only right

when he created his famous “3” hat to symbolize him dropping his third album (Schwartz, D. 2017). In a

2018 interview, Chance revealed that he made $6 million off this hat alone (Rucie, D. 2019).

Transition Statement: And that is the final component to the three main ways an artist generates revenue in the music

industry.

III. THE CONCLUSION

A. In conclusion, the breakdown of music artists making money in the music industry is a lot more complicated

than people realize. I hope this presentation opened your eyes to an interesting world that is often overlooked.

B. Now you can begin to understand why music artists often complain about making little money in pursuing their

passion.

C. The main avenues in which music artists make money include the distribution of an artist’s music, touring, and

selling merchandise.

D. So, the next time you decide to stream your favorite song, or buy concert tickets to see your favorite artist,

consider where your money may be going and how it contributes to what an artist truly makes.

IV. BIBLIOGRAPHY

Consumer Research. (n.d.). Retrieved April 12, 2020, from https://www.ifpi.org/consumer-research.php

McIntyre, H. (2017, April 17). The New Role Merchandise Plays When Creating A Musician's Brand. Retrieved April

12, 2020, from https://www.forbes.com/sites/hughmcintyre/2017/04/17/the-new-role-merchandise-plays-

when-creating-a-musicians-brand/#1751444429e6

O'Connell, E. (2018, March 2). Why Touring Will Be Your Biggest Source of Revenue. Retrieved April 12, 2020,

from https://medium.com/bandbasher/why-touring-will-be-your-biggest-source-of-revenue-2464fd47b655

https://www.forbes.com/sites/natalierobehmed/2019/06/04/rihanna-worth-fenty-beauty/#270fdec13de4

Rucie, D. (2019, July 3). Why Chance the Rapper Started Selling His Music. Retrieved April 20, 2020, from

https://trapital.co/2019/07/03/why-chance-the-rapper-started-selling-his-music/

Schwartz, D. (2017, February 28). Chance The Rapper Explains Signature "3" Hat In Interview With Katie Couric.

Retrieved April 20, 2020, from https://www.hotnewhiphop.com/chance-the-rapper-explains-signature-3-hat-

in-interview-with-katie-couric-news.29484.html

Wang, A. X. (2018, August 8). How Musicians Make Money - Or Don’t at All - in 2018. Retrieved April 12, 2020,

from https://www.rollingstone.com/music/music-features/how-musicians-make-money-or-dont-at-all-in-

2018-706745/