This is the question that is on everyone’s mind when they hear about Crowd Music. Crowd Music…”Great, another music service. I already have Spotify.” I get it, believe me, I do. I mean…we can all have virtually any type of music we want at our finger tips for free or at the very most a very small subscription fee…and video? Well Youtube is absolutely free!! Life is good!

Well, if you’ll hang with me for a second, l’ll explain to you why “the day the music died” is coming sooner than we all think.

For starters, let me just throw some real facts and figures at you. Keep in mind, these are not alternative facts…these are real, documented numbers. Hold on, this is gonna get bumpy…

-According to Music Business Worldwide….”Spotify revenues hit 3.6 billion in 2016…but net losses widened by 133% and soared to a momentous 665 million dollars.”

-According to Thestreet.com…”Pandora posted a 30.4 million dollar loss in the 4th quarter of 2016, up from a 24.8 million dollar loss a year earlier.”

How do major music companies keep posting losses and yet stay in business you ask? Investor capitol. That’s right, The major labels have invested heavily in the streaming services propping them up year after year, but that is starting to come to an end. You see, according to Billboard “Labels hate the free tier because it pays so much less than the subscription revenue.”

Conclusion…Labels and streaming services are not happy because they are losing money with this model.

What do artists and songwriters think of the new music business model?

Well, as an artist with a song on Spotify your payout per stream is a whopping…. .004891 cents per stream. That is a massive pay cut from what a physical c.d. used to sell for.

Let’s put that into perspective…if you had 10 million streams of your song (which I think anyone would agree is a pretty big hit song) that would only make you $48,910.

Now, think about the fact that in most cases the only artists that have a shot in hell of getting those kinds of numbers are signed artists that are having to pay back their recording advance to the label, pay a manager, a booking agent, travel expenses, lawyers, etc…

Conclusion…Artists are not happy with the new music business model.

Okay, okay, I get it…you are not an artist or a big streaming service… you are a consumer that just wants to listen to great music. Well, lets take a look at that…

I think a good way to illustrate what is happening to music consumers is to equate it to another industry. Let’s use, computers. Okay, so I am typing this on an Apple computer right now that I paid a good amount for. Thousands of dollars in fact. Now we all know that the folks who design and build Apple products out in California get paid very well to do that…so they are happy to keep making innovative and quality products. Now, let’s imagine we cut their pay by 50%. Do you think the quality of the product might suffer? If the quality of the product suffers, how long do you think the investors in Apple would keep the doors open and keep making computers while losing money? I’m guessing not very long.

Conclusion…consumers are unappy because they are force fed the same twenty songs on radio. Streaming subscription services give them choices but eventually we come back to the start because they are losing money and cannot continue to be cheap for very much longer.

So we’ve established that the streaming services and labels are losing money, the artists are losing money, and as a result, the consumers are getting factory made, cookie cutter music delivered.

It’s a tangled web with only so much money to go around. The music business is broken and on the verge of collapse. It’s a scary time to be in this industry. In fact, anyone with half a brain would tell a kid to stay far away from the music business. We’ve already taken music out of many schools.

So how do we save music and make everyone happy again? Well, now that I’ve thoroughly depressed you, let me give you hope. Crowd Music.

This is not a sales pitch, this is a fact. Run the numbers for yourself and you’ll see…We CAN save music and make loads of money doing it. That’s right, I said MONEY and MUSIC in the same sentence. Let me show you how…

Crowd Music is a subscription service. We provide our consumers with 20 songs per month for $20. That’s one dollar per song. We then pay the creatives first….40 cents per song sold. Then we pay YOU, the consumer! For every person you tell about Crowd who signs up to receive new music you will get a $1 referral fee every month. Now here’s where it gets crazy, lets say 5 people sign up through you, and they tell 5, and they tell 5 etc…You receive a dollar every month from Crowd for every single person that signs up in your Crowd. That’s potentially a ton of extra monthly income for just sharing music.

We at Crowd hand pick the artists so we ensure only the best of the best get featured every month. Think of us like the Rolls Royce of the music business. We pay artists better, we now pay consumers to share music, and we have better music. Everyone is happy.

There is a future for the music business and it’s super exciting. Where there is hardship there is always opportunity, now is your opportunity to join our Crowd and help save music, and get paid to do it!

Craig Wilson

Author Craig Wilson

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Join the discussion 2 Comments

  • Lou Spoltore says:

    I understand the model are you seleciting your 20 songs monthly genre specific and offering multiple genres in your subscription package? Many more questions. Licensing, promotion and distribution. Are these major label signed artists or independents trying to compete. What are your subscription goals and how does business model payout for those who invest time and money beyond a buck per subscriber referral fee ? How does the artist make money from the airplay or is it driving subscribers to a site for purchase? Let’s chat

    • Hi Lou, thanks for the great questions! I’ll touch on some of them here at a high overview level in this format, but we’d love to have a more in-depth chat. We have a growth strategy designed to benefit everyone. We can grow to 20 Million Subscribers in the next 5 years and still be less than 4% of industry estimates for paid streaming subscriptions. Do we think 4% of those paying for streaming would be interested in an additional music service that can pay for itself, cover the cost or their current subscription, and still put cash in the bank… potentially A LOT of cash? That’s pretty conservative. Obviously we look at lot different at 20mm Members vs 50,000 Members at the start. The whole concept is starting out with a group of folks who will all rally around a small amount of Artists and Bands at the start to make sure they have exposure, and stand out above the noise in the marketplace (20,000 songs uploaded on Spotify Daily. Over 300 Hours of Video – much of it music – uploaded on to YouTube every single minute of the day! etc…). Even at 1,000,000 Members, we can easily be providing a variety of 70+ songs every month and guaranteeing Artists actual sales in excess of 250,000 copies per single on average. That’s just on the Memberships, and doesn’t even start to take into account the Consumers who just want to purchase a single. In this model Artists are making over $20,000 per Featured Single released through Crowd even at just 50,000 Members. Compared to what on Spotify even if the standout and stream millions of times. If their song is that good that people want to hear it, and 50,000+ have already bought it, others will buy it too. Artists retain ownership of their songs. Radio play, etc… all goes to them. We’re simply exclusive distribution. Our payout model allows our Promoters to earn several hundred to several thousand a month in income. Let me ask two somewhat rhetorical questions: Do you think EVERYONE knows at least 5 people who like music? Do you know anyone who would NOT want a growing residual income stream coming in every month as a result of sharing it with just 5 people personally? You see, the model isn’t based solely on your efforts. You benefit from the growth of your entire Crowd. Even if you shared it with just 3, and they each shared it with 3, etc… We pay out six connections deep into your Crowd. That’s over 1,000 Members in your Crowd… on which yes, we are paying you a MINIMUM of $1.00 per Month, per Member. And that’s with just 3. What happens when folks catch on and share it with just 4 or 5? Go to the Opportunity Page here on the site and scroll down to the “Potential Income” Calculator and play with a few scenarios. Trust me, there will be no doubt left in your mind that this is a great exchange of time and effort for the money involved. Again, a whole lot more to go into than what this space allows. Let’s chat further. Shoot us a message on our About Us page on the tab up above with your contact info, and David or I will reach out personally. Looking forward to it! – Mike

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