We live in a culture where capitalism, greed, paranoia, and fear are clashing together. When people see successful companies and business models, the only option to compete is to “undercut on price”.
The fact of the matter is that monthly earnings can already be measured within the subscription model. My sources have told me that a few folks have earned around $900 to $1500. So if the very best one can do inside elements at this moment in time is $1500, that to me sounds like eventually, the best anyone can do with monthly earnings from subscription alone is about 90% less than what can be generated from a 1 sale at a time sync license model. Just imagine if all AJ tracks went over to elements? It seems that logically speaking, everyone’s earnings would fall by 80 to 90%.
Musicians and music producers will undercut each other until each track or download will equate to fractions of cents.
No one likes pessimism or gloom and doom, but I highly advise those dependent on AJ income to support themselves and their families to look for another job. I do not see a good ending to this change. It’s like a tsunami growing in size little by little each day.
Thank God for the PRO’s and back end performance royalties, the “front end/ sync fee” royalty is clearly under attack, but only because music producers are agreeing to undercut, devalue, and get on board with a lot less. Sure there are folks making “more” these past 2 or 3 months, but there are some who actually made “less”. Once subscription becomes the “new normal” or if it does, I predict all will be making 80% less.
Hopefully I will be wrong and perhaps not as many businesses will embrace subscription, but it just seems like we’re headed to “Subscribe and take everything you want for only 5 cents!” The price undercutting is a nasty virus spreading at the speed of light. So sad. In the end, it always comes down to music producers being at fault. They are the one’s who agree to deals that on face value, just look completely absurd.
How about the offer of:
“Sign your track over to our publishing company for $0, we become the exclusive publisher in perpetuity and we now own the master sound recording and copyright, in perpetuity.”
It’s amazing how many music producers accept that deal. Everyone has been fighting a good fight here, but the fight may very well already be lost. No communication about these matters simply means “no”. Everyone is looking for an answer to all authors concerns about $5 prices, banner ads, rewarding sales numbers instead of revenue…we have our answer…it’s “no, we will not change the way we are doing business.” So start thinking about plan B for your income. I already have myself. It’s not just at Envato/ AJ only…it’s all markets. Again, thank God for the PROS and performance royalties. That is the last layer of protection we have.
If you price your assets as “worthless”, you will become “worthless”. Philosophically speaking, why is it that so many music producers just render themselves as worthless? Here it is…take it, for nothing, it’s yours to use, for absolutely nothing or pennies at the very most. Look in the mirror friends.