Of the $43 billion revenue earning in the music industry, artists themselves pocket only 12 percent, according to a report recently published by Citigroup. After releasing their findings, Citigroup has made the public aware of a fact long-known by artists — lucrativeness is not a strong theme for musician in their field.
The already-shocking 12 percent comes after significant increase from 2000, where artists received a mere 7 percent of the industry’s earnings.
The report revealed concert revenue as a driving factor. Live Nation Entertainment release their full-year results annually, and their reports echo what Citigroup found. In the span of five years, Live Nation Entertainment’s revenue grew exponentially from 2012’s $5.819 million to 2017’s of $10.3 billion.
Other industry changes include consumer spending habits. In 2017, while consumer spending on physical purchases of music went down, spending on subscriptions and concerts increased, raising overall consumer spending.
The Citigroup outlined several proposals for the music industry to evolve to support musicians, but the solution to putting more money in your favorite artists’ pockets is simple — attend their concerts.