German musicians deserved so much money in 2021

1. Music income in 2021

According to a survey by the artists' social security fund (KSK), there are 55,455 musicians in Germany in 2021. According to the German Law, the musician employed is subject to a simplified manner if you permanently exercise a musical activity.

For 2021, the annual income of gained musicians is estimated by the KSK on an average amount of just EUR 12,991 before taxes.

Both musicians and teachers fall into this survey. Even if the term musician is broad in this survey, we derive from the determined estimated value of the KSK that it is rather lean of the merits of musicians. We were particularly interested in which, apart from music lessons their money on .

2. Sources of income for musicians

Based on a contribution from the Funk media group, we 5 essential sources of earnings for musicians . The earning opportunities here differ in part.

2.1 Live music events as the main source of income

the online magazine Deutschlandfunk Nova, live music events are the main source of income for many musicians. In the past, concerts and events were held to promote physical recordings. Today it is exactly the other way around.

The willingness to spend money on live music events has increased significantly. This underlines a study by the Federal Association of the Concert and Event Economy between 2018 to 2021. While fans were still ready in 2018 to spend an average of 45 euros for a live music event, in 2021 it was an average of 55 euros.

According to Deutschlandfunk Nova, musicians earn an average of around a third at the income from concerts. The remaining income is no longer available to concert agencies, musicians management, CD and record publishers as well as ticket dealers. Depending on the type and scope of a live music event, of course, more for musicians can also jump out in individual cases.

2.2 Streaming provider

The streaming business is making an ever increasing share in the music business. According to BVMI 63.4 percent. However, the earning opportunities for musicians are low. Spotify, for example, pays its artists only one euro for 254 streams. A monthly payment of 1,000 euros would require 254,000 streams.

The remuneration on Spotify is also proportionate. The streams of a musician are therefore placed in relation to the total number of streams. As a result, streaming is most likely to benefit from streaming, which already have a large reach and a loyal fan base.

A considerable number of musicians can therefore use streaming providers to generate attention and reach. But not to build a sustainable income from it.

2.3 Merchandise article

In order to diversify their income flows, some musicians also focus on selling their own merchandise articles.

However, precise sales are difficult to determine, since the income for musicians depends very much on which products are offered and in which quantities you sell them to your fans.

A whole range of products can be sold for this. It can be T-shirts , sweaters, cups, chains or the like. This depends entirely on the creativity and the entrepreneurial spirit of the musician. A trade in merchandise articles can be worthwhile. These can be purchased cheaply in purchasing and can be sold to loyal fans with a significant profit.

However, it is a prerequisite for this type of business that the musician has a certain number of loyal fans who are willing to pay for it.

2.4 Gema & Gvl

Both the GEMA and the GVL are exploitation companies for musical works . Musicians and music publishers can join GEMA. GEMA represents the remuneration claims of its members and enters license fees from those who want to use the music for their purposes.

This is the case, for example, during live performances, the sale of sound gears, online broadcasts, radio or television as well as at public events. The remuneration to the author is largely dependent on the use.

The aim of the GVL is to better set out performing artists (singers, musicians, dancers, etc.) and to achieve adequate remuneration for the use of productions. Here, too, the principle of remuneration for GEMA is similar in principle. The more often the recordings produced are used, the higher the remuneration. For musicians, membership in these exploitation companies can therefore have a positive effect.

2.5 Physical recordings

According to the BVMI, 28.5 percent of sales from sales in the music business in the music business are still on physical sound carriers in 2020. Musikmagazin Delamar, the percentage of a musician on a CD is around 4 percent and therefore shows that the income from the CD sale is hardly worthwhile.

We do not know the exact age of those who buy physical sound carriers. However, we assume that older generations in particular like to buy CDs. In our opinion, young fans and subsequent generations rarely tend to buy a CD of their favorite star.

We therefore do not see the sale of physical recorders as a very profitable source of earnings for musicians, but rather as a way to advertise their own events and concerts.

3. Outlook

We draw from our research that the average of the musicians in Germany is quite difficult. We currently see the most promising source of income for musicians in live music events and the sale of merchandise articles.

With Scoopas we want to create a solution to the financial challenges of the musicians. Scoopas provides a live streaming platform on which musicians earn money by streaming live concerts and events . Recovers can be generated by selling concert tickets, promoting their own merchandise articles or being supported by their fans by a donation.

Are you a musician or music fan? Scoopas.com on our platform . The platform will be live in the course of 2022.