Due to the fact that so much is changing in the music industry, music artist should focus on their actual business model and approach to the industry. Music is still selling but isn’t selling like it used to due to online streaming, piracy, and inefficient business structures. Some people would rather not buy your album, but rather just listen to it on streaming sites like Spotify. More and more artist are starting to refer to music as the “loss leader”.
The loss leader is basically a business strategy to sale other products. So what you see a lot of artist doing to day is they are giving out their music for free so they can then turn around and sell other things such as merchandise, verses, hooks, promotion, meet and greets, consulting, endorsement deals, shows, touring, studio visits, VIP tickets, memberships, etc. There are so many ways to make money as an artist, so a lot of them are starting to refer to their music as the loss leader and focus on building their brand to sell products or services to fans or to their peers. Artist today should be thinking outside of the box.
Listen to Will.I.AM talk about how artists make money from music now a days.