Bassist Phil Soussan, known for his work on Ozzy Osbourne‘s “The Ultimate Sin” and the iconic hit ”Shot In The Dark,” recently opened up on the “Rimshots With Sean” podcast about the evolving landscape of music revenue.
Gone are the days of freebies at concerts driving record sales, Soussan explained. Today’s music industry operates on a reversed model:
“Music has essentially become a loss leader. It’s about driving fans to live shows where they’ll buy merchandise and expensive tickets. That’s where the real money comes in now. The tangible concert experience can’t be replicated, unlike a digital track.”
While Soussan doesn’t foresee a return to the days of record sales dominance, he does see potential for artists to earn more through streaming platforms.
He points to the increased subscription rates and soaring stock prices of platforms like Spotify as evidence that they have the financial capacity to share more with artists.
“They initially promised lower rates to get off the ground, and the music community, always willing to support new ventures, agreed. But those rates never went back up, instead, the conversation shifted to – we’re paying you too much! Musicians deserve greater consideration and support from these platforms.”
Soussan acknowledges the role of collector’s items like vinyl and autographed cds, recognizing they continue to hold value for dedicated fans. Though, he believes a fairer system within the streaming ecosystem is crucial for a sustainable future for musicians.
His experience, spanning collaborations with legends like Jimmy Page, Steve Lukather, and his current role with LAST IN LINE, highlights the need for artists to diversify revenue streams and advocate for fairer compensation models in the digital age.
What are the main revenue streams for musicians today in the age of streaming?
Interview with Phil Soussan: Navigating the Evolving Landscape of Music Revenue
Time.news Editor: Phil, thank you for joining us today. You’ve had an impressive career in the music industry, working with legends like Ozzy Osbourne and Jimmy Page.What are your thoughts on the current state of music revenue, especially with regards to changes in consumer behavior?
Phil Soussan: Thank you for having me. The landscape of music revenue has certainly shifted dramatically over the years. Nowadays, music has become somewhat of a loss leader. In the past, we could rely on record sales fueled by concert merchandise and touring, but now it’s all about driving fans to live shows where they will spend money on tickets and merchandise. The tangible experience of a concert is something that cannot be replicated, which is why it remains a key revenue stream.
Time.news Editor: you mentioned that musicians can no longer depend on record sales as they once did. Can you elaborate on what this shift means for artists today?
Phil Soussan: Absolutely. We’re living in a new paradigm where streaming platforms dominate the industry. While I don’t foresee us returning to a model where record sales are the primary income source, I do see potential for artists to earn more from these streaming services. Substantial increases in subscription rates and the rising stock prices of platforms like Spotify suggest that they have the capacity to share more revenue with artists.
Time.news Editor: That’s an captivating point. You also brought up the initial promises made by streaming services regarding artist compensation. What needs to change in this regard?
Phil Soussan: The conversation has shifted over the years. Initially,streaming platforms promised lower payout rates to get their services off the ground. The music community, in its eagerness to support new ventures, accepted this. Yet,those rates never improved,and now the dialog seems to revolve around claims that musicians are being overpaid. It’s crucial for musicians to advocate for fairer compensation models.They deserve greater consideration and support, particularly as these platforms become more lucrative.
Time.news Editor: Manny artists are exploring alternative revenue streams beyond record sales and touring. What strategies would you recommend for artists in today’s digital age?
Phil Soussan: Diversification is key. Artists should look into multiple revenue streams, such as merchandise sales, vinyl and collectible items like autographed CDs, which hold value for dedicated fans. Also, investing time and resources into establishing a robust online presence can create additional income opportunities, whether through Patreon, exclusive content, or branded partnerships.
Time.news Editor: What role do collector’s items play in the current market? Are they still significant?
phil Soussan: Yes, they definitely hold significance. Collector’s items like vinyl records or autographed cds can still fetch high prices and have a nostalgic appeal. They create a deeper connection between fans and artists, contributing to the overall experience of fandom.However, as desirable as these items may be, relying solely on them isn’t sustainable for a musician’s long-term financial health.
Time.news Editor: As someone who has collaborated with various artists, how crucial is it for musicians to engage with their audience?
Phil Soussan: engagement with fans is essential. Today’s music landscape emphasizes personal connections, and artists who actively communicate with their audience, whether through social media or in-person events, foster loyalty and support. This doesn’t just enhance their brand; it also helps create a community around their music,which can translate into increased sales and support for various projects.
Time.news Editor: Thank you,Phil,for sharing your insights on the evolving music industry. It’s clear that understanding the landscape and advocating for fair compensation is crucial for musicians today.
Phil Soussan: Thank you! It’s always a pleasure to discuss these critically important issues facing artists in the digital age. The future of music is shining, but we need to work together to ensure it’s sustainable for everyone involved.
