The Music Business Ecosystem

The modern music industry is a complex web of rights, relationships, and revenue streams. Before building a team or signing a deal, you must understand how the pieces fit together. This ecosystem view simplifies the flow of creativity and commerce.

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Creation & Rights

Everything starts here. Understanding the split between Masters and Publishing is the "Golden Rule" of the business.

The Master

The actual sound recording. Usually owned by Label or Artist.

Publishing (The Song)

Lyrics & Melody. Owned by Songwriters & Publishers.

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The Hub

The Artist is the CEO. The Manager is the COO. They coordinate all external partners.

THE ARTIST

CEO / Creative Visionary

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Personal Manager

Strategy, Coordination, Firefighting

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Commercial Partners

Entities that help monetize the art in exchange for a percentage or fee.

Record Labels Distrib & Marketing

DSPs (Spotify/Apple) Consumption

Live Agents Touring

The Economics of Art

Music isn't just one paycheck. It's "pennies from heaven." This section breaks down where the money comes from and how deals affect your bottom line. Use the **Deal Simulator** to understand the impact of signing a 360 deal versus staying independent.

Revenue Mix

Emerging artists rely heavily on direct fan support (Merch/Gigs), while stars see massive Touring & Publishing scale.

Deal Simulator

Adjust the generated revenue to see how much the Artist keeps under a Traditional 360 Deal vs. an Independent Distribution Deal.

Gross Revenue Generated ($)

$10k $100,000 $1M

Note: 360 Deals often take 15-30% of Non-Record income (Touring, Merch) on top of owning the Masters. Indie deals typically take 15-20% only on distribution.

Building Your Infrastructure

"You don't need a manager until you have something to manage." However, knowing the roles is crucial. Explore the cards below to understand the standard commission rates and responsibilities of key team members.

Personal Manager

15-20% Gross

✓ General Strategy
✓ Team Selection
✓ Label Liaison
✓ "The Bad Cop"

Business Manager

5% Gross or Hourly

✓ Accounting
✓ Taxes & Investments
✓ Royalty Audits
✓ Bill Payments

Booking Agent

10% Live Gross

✓ Finds Gigs
✓ Route Planning
✓ Festival Placement
✓ Collects Deposits

Attorney

Hourly or 5%

✓ Contract Review
✓ Negotiation
✓ IP Protection
✓ Shopping Deals

A&R and Data Strategy

Modern A&R (Artists & Repertoire) is data-driven. Labels scan for "Spikes" in data—consistent growth in streams and engagement—before making contact. This interactive tool mimics a modern A&R dashboard used to evaluate talent.

The "Signing Matrix"

Drag to Zoom • Hover for Details

Labels look for outliers. High streams with low social engagement suggests a playlist fluke. High engagement with low streams suggests a "Cult Fanbase" (High Potential).

The Fan Journey

Discovery

Short-form video, Playlists.
Metric: Views/Impressions

Consumption

Streaming full catalogue.
Metric: Save Rate / Repeats

Participation

Buying Merch, Tickets, Email.
Metric: $ per Fan

Key Metrics

ARPU: Average Revenue Per User.
Recoupment: Repaying advances before earning royalties.
Black Box: Unclaimed royalties.
Sync: Licensing music for TV/Film.

The Music Business Ecosystem

Creation & Rights

The Master

Publishing (The Song)

The Hub

THE ARTIST

Personal Manager

Commercial Partners

Select an element above

The Economics of Art

Revenue Mix

Deal Simulator

Building Your Infrastructure

Personal Manager

Business Manager

Booking Agent

Attorney

Role Details

A&R and Data Strategy

The "Signing Matrix"

The Fan Journey

Discovery

Consumption

Participation

Key Metrics