Music Fans Are Prepared To Spend Up To $2.6 Billion More Annually For Premium Content

Nielsen has unveiled the findings from “The Buyer and the Beats: The Music Fan and How to Reach Them,” an unprecedented music study created especially for the 2013 SXSW conference attendees that provides beneficial insights about music fans, defined as those who are passionately invested in music. Co-presented by Nielsen and SXSW during this year’s conference in Austin, the report explores how music listeners engage with music and technology, utilize their smartphones, tap into free content, and engage in crowdsourcing; as well as how companies, artists and fans can be better served.

“The Buyer and the Beats: The Music Fan and How to Reach Them” reveals that 40% of U.S. consumers � those classified as “Fans” � are responsible for 75% of music spending. These Fans, who spend between $20 billion and $26 billion on music each year, could spend between $450 million and $2.6 billion more on music if compelling content is made commercially available. Additionally, the study finds that that the most avid of “Fans” have downloaded the most tracks for free–approximately 30 digital songs per fan over the course of a year.

“It’s encouraging to see such strong demand for content from music fans,” says David Bakula, SVP Client Development & Analytics for Entertainment, Nielsen. “We are finding that there’s a lot of untapped demand for additional content, which can translate into beneficial and profitable opportunities for artists, labels, and advertisers.”

A majority of “Fans” want greater engagement with their favorite musicians and would be willing to pay considerably for that access. They want to know more about what they’re like as people, and get a better understanding of the creative process. These “Fans” are prepared to pay more for exclusive or premium content, autographed products, and special merchandise. In addition, these fans would consider paying about $30 for an “online ticket” to view an exclusive live webcast.

Neilson data on music fans

Nielsen identifies the difference between a casual music consumer and a music “Fan,” and the best way to reach them. The core music fans include “Aficionado Fans,” “Digital Fans,” and “Big Box Fans.” Fans who don’t meet the criteria to be classified as one of Nielsen’s core music fans are the “Occasional Concert Consumers,” “Ambivalent Music Consumers,” and “Background Music Consumers.”

* Aficionado Fans (14% of respondents) – the most avid and engaged music fans are spending about $400 per year on music, concerts and artist merchandise through retailers such as iTunes, Amazon and independent record stores. These fans prefer alternative rock, are active social network users, attend live concerts and listen to music via computer.
* Digital Fans (13%) � the smartphone is the entertainment hub for these fans, who discover music via technology and listen to music via Facebook. They spend over $300 per year on music and share music more than other fans, giving music as gifts and sharing their playlists.
* Big Box Fans (13%) – these fans shop at mass retailers, are partial to pop and country music, and listen to music through a CD or mp3 player. They are highly influenced by bargains, respond well to brand endorsements, and spend about $200 per year on music.
* Occasional Concert Consumers (14%) and Ambivalent Music Consumers (22%) are less engaged with music than the “Fans,” and they spend less (about $100 and $70 per year, respectively). Nonetheless, the Ambivalent Music Consumer is open to discovery (60% use Pandora) and expressed some willingness to pay for exclusive content.
* Background Music Consumers (24%) are the least engaged of all music consumers, spending only $40 per year on music.

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“The Buyer and the Beats: The Music Fan and How to Reach Them” presenters included Barbara Zack, Chief Analytics Officer, Entertainment Measurement for Nielsen; David Bakula, SVP Analytics for Nielsen; Benji Rogers, Founder & CEO of PledgeMusic; and Shawn O’Keefe, Interactive Festival Producer, SXSW. During the panel, Bakula projected On-Demand streaming to exceed 100 billion by the year’s end.

Data for “The Buyer and the Beats: The Music Fan and How to Reach Them” was collected via 1,000 consumer surveys using Nielsen’s proprietary, high-quality ePanel in the United States; 1,800 PledgeMusic contributors; and 1,200 SXSW attendees.

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Types of Music License

.Types of Music License

Well once again we have compiled a little more info on some catagories of music licensing. we are trying to help promote music and the education of our artist. If you would like to collaborate maybe share some thoughts feel free to add a comment.  Would love to hear from our fellow artist, music libraries

Master Use Sound Recording Licenses
Usage: License master audio recording with no use of visual synchronization.
License Types:

  • Audio Projects
  • Composition and Sound Recordings
  • Master Ringtone (Pre-Recorded music which play actual clips from sound recordings.)
  • Music Compilation (CD, DVD, PC Audio)
  • Public Space (Restaurants, Trade shows, Retail spaces)
  • Radio Ad or Production
  • Sampling, Remixes, Covers and Derivative Works
  • Telephone or Music On Hold

Print Rights Licensing
Usage: Generally sheet music, song folios, scores or notation in any printed or digital form released for sale. Once sold, printed music earns royalties from the print rights license which the publisher negotiated.
License Types:

  • Scores or notation
  • Sheet music
  • Song folios

Sync and Master Licenses
Usage: Use of master in synchronization with visual for film, games, video, etc.
License Types:

  • Corporate, Theater and Competition (unless no visual media is used)
  • Film Sync License
  • Games and Software
  • Internet Website, Flash
  • Products and Toys
  • Single Units (Wedding video, small quantity for profit)
  • Slide Show or PowerPoint
  • Software – Multimedia, All platforms, any use
  • TV Advertising
  • TV Show Sync License
  • Video (Music for Video, DVD or CDROM)

Composition Licenses
Usage: No sync or master, only license to record and sell the song’s composition.
License Types:

Basic Mechanical Royalty application: A mechanical right is the right to record and distribute (without visual images) a song on a phonorecord (e.g. CD) for private use. Mechanical rights or a mechanical license must be obtained in order to lawfully make and distribute records, CD’s and tapes.

  • Phonic Ringtones – Ringtones using standard MIDI sound files

There are two basic types of ringtones:
Phonic Ringtones and Pre-Recorded Ringtones.

  1. Phonic Ringtones are (most commonly) standard MIDI sound files that are either monophonic, where the ringtones are recreated using standard single notes, or polyphonic where notes can be played simultaneously creating harmony and/or counterpoint.
  2. Pre-Recorded ringtones play actual clips from sound recordings. It should be noted that the term ‘Pre-Recorded ringtone’ is not the standard (industry wide) term. They are also known as Trutones, Songtones, Master Ringtones, etc.

Personal Use Licenses
Usage: Non commercial usage, may be sold as retail product, offered for promotion or evaluation for commercial licensing purposes.
License Types:

  • Free Demo – for promo or commercial project evaluation only.
  • Personal Use – typical retail sales application. May not be used for any commercial projects OR purpose requiring other kinds of licenses.

Performance Rights Licensing
Application and Usage: The public performance rights most commonly collected via the Performance Rights Organizations such as ASCAP, BMI, SESAC, SOCAN, PRS and other PROs around the world. Their fundamental job it is to keep track of every single performance or broadcast of all works protected under copyright. Common uses include Film, TV and Radio broadcasting among many other public and live audience venue performances.

Mixed Usage, Special Licenses

  • Custom License – publisher/buyer negotiated according to exact usage, for example, blanket, per-program, exclusive or foreign rights deals, etc.
  • Stock Music License – some restrictions normally apply and vary according to publisher

If your looking to get an idea on some music to use feel free to visit one of the many places to utilize our music. There is a small guitar oriented library and catalog as well as a larger cata log to sample thru with more genres. Please also feel free to add your thoughts, comments and ideas that might help your fellow musical brothers and sisters in the journey to get their music out there.

Wolfies Music Publishing Store