Industrial Context - Finance, distribution, exchange, and how audiences access them
Music video companies finance their businesses in many way.
For bigger companies, some use 'cash-flowing'. Cash-flowing refers to a companies use of cash-on-hand to finance a film, meaning the company takes money coming in as revenue, and spends it to produce the film.
Cash-flowing arguably is less risky than other finance strategies as it demonstrates that the company already has all the funds to make the video, providing comfort to banks etc. as it is unlikely they will incur debt.
However, cash-flowing is not always realistic as it requires the company to have millions of revenue to finance the film/music video etc.
For smaller companies, crowd-funding can be a key way to raise finance.
Crowd-funding is a way for creators to get funding for their ideas from anyone who is interested in the projects - eg. fans etc.
As a result, crowd-funding can benefit not only the company and artist, but the fans and listeners too, as they can then watch the music video due to their help funding it!
Merch sales is a classic way smaller companies can also help finance their music videos.
Especially now with the convenience is eCommerce, fans worldwide can help raise finance whilst purchasing goods from their favourite artists etc.
Live performances is also a great way to generate funding for an artist etc.
Live performances can also expand the artists audience, creating a wider reputation, in time for the release of their music video.
Successful music video distribution is vital for the artist/band and company.
A good example of a music video distributer is Symphonic Distribution.
Symphonic Distribution is a very attractive deal with Merlin, which offers them (and their customers) special benefits and higher royalty rates.
Horus Music offers 3 types of services: marketing, distribution, and record label services.
Horus Music has a great reputation, and reviewed as excellent on Trust Pilot by 78% of people.
JTV Digital allows videos to be distributed on iTunes, VEVO or Trace TV Channels, and has become particularly successful among artists in Africa.
Unlike other distribution companies, JTV Digital as a 'pay-as-you-go' scheme - where you pay 0.5euros per track upload, and 0.2euros per track delivery per store.
For an iTunes music video it is 99 euros, and a VEVO Channel costs 29.90 euros per year.
However, JTV Digital gets 10% of royalties.
Music video distribution increases visibility, and provides as an opportunity for monetisation and revenue generation.
Music videos can generate revenue and exchange very effectively...
Youtube generally pays $0.50 to $2.00 per thousand views, depending on factors including ad quality and viewer location.
If your Youtube music video however gets one million views, Youtube pays between $3,000 and $5,000 (depending on whether viewers actually watch the ads or are signed up for Youtube Premium).
Other ways music videos can make money is by...
1) Advertising Revenue
2) Product Placements
3) Digital Downloads
4) Sponsorships
5) Streaming Royalties
6) Affiliate Marketing
7) Touring and Live Performances
8) Merchandise Sales
9) Licensing and Sync Fees
With the developments in technology, music videos can be accessed even easier by audiences
Audiences can now download, as well as, stream music videos straight onto their electronic devices, such as a mobile phone, tablet, and laptop to watch at their own demand.
The internet, TV stations and media players such as iTunes are the 3 main platforms that allow audiences to access and consume music videos.
Before the internet, it was much harder for audiences to access music videos, especially if music videos were only released in a few countries. However, search engines including Google and allowed audiences to access music videos from platforms eg. Youtube and Vimeo.
YouTube was launched in 2005, and at the time was the only website dedicated showing and publishing music videos online for free. Later, in 2006, it was bought by Google for $1.65 billion...
Youtube is now one of the biggest websites for audiences consumption of music videos!
TV stations, eg, 4Music and MTV target teenagers and young adults and focus on playing current and old music videos.
MTV, for example, has even focused on creating different channels for different genres of music.
Audiences can also now download and stream music videos on their electronic devices on media players, eg. iTunes.
This was of accessing music videos is becoming more popular due to its convenience of accessing the music videos on demand whenever or wherever they are.