Artists direct Focus on passion, not professionalism

20,000 foot view:  All eyes of the music business are on artists direct, the fastest-growing segment of the industry. But the            million artists in this segment are far from a unified group, and have varied aspirations, challenges, and needs. MIDiA’s 2023 creator survey reflects that the two largest sub-segments of artists direct are those who seek full-time music careers; and those who are passionate about music, but not seeking a full-time career. Counterintuitively, the latter may provide nearly just as large a revenue opportunity for the artist services sector than the former.

Key insights 

• Music is            full-time career for just            of            artists direct sector, or            million           
           of artists direct are “career seekers” aspiring for a full-time music career, and            are “passionate enthusiasts” who do not aspire to go full-time. These are the two largest sub-segments of artists direct
• Passionate enthusiasts            often just as committed and            as career seekers, but simply            not plan to earn a            from their music
• On average,            seekers earn            more income annually            music than passionate enthusiasts, and            more diversified music income sources
• Despite lower            earnings, passionate enthusiasts spend            more            music-making tools compared to career            (an average of            per year,            to           
• Passionate enthusiasts’            challenge is not having enough            to create            and            use project            tools
• Oversaturation and            of financial resources tie at            the top two challenges for            seekers, with the latter hindering            ability to overcome the former
• To assess            artists direct opportunity, MIDiA built            addressable revenue model based on            sub-segment allocating a portion of            revenues to growth tools
• Because they            both willingness and ability to            on growth tools, passionate enthusiasts            an            million addressable revenue opportunity            an artist services market based            streaming revenue profit-share
• Career seekers            willingness, but less of an            to spend on growth tools.            they have more streaming revenue            allocate so end up with            higher addressable opportunity of            million

Companies and brands mentioned in this report: AWAL, BandLab, Believe, Discover Mode, Gamma, Human Re Sources, Laylo, Repost Network, Reverbnation, Sony Music, SoundCloud, SoundOn, Spotify, Stem, TikTok, TuneCore, UnitedMasters