Fair distinction between bands and the industry but the general conclusions are the same - very few musicians are making money. Fewer than before, harder than before. Talking about side hustles and having other jobs to make it work is clearly evidence of that fact.
Most bands never made money in the past either.
It still works more or less the same way.
Enormous amounts of ready cash hurled in their general direction, which then cascades through a set of filters (manager, agent, promoter) who each take their percentage. Then it goes to pay for press, studio time (rehearsal and writing), equipment (buying and maintenance), living expenses. How the the music makers get paid is organised by the band and the manager.
Tours are given tour support, which pays for rehearsals, hall hire, bus hire, accommodation, crew, per diems, incidentals…..
Same with making records: the label pays for everything up front and it looks like an amazing lump sum of money, which goes towards the studio, the producer, then the art work, press and promotion….. and it all has to be paid back to the label put of earnings.
Everything is recoupable, meaning the band has to pay it back out of earnings. That may never end up happening. Plenty of famous bands are still in hock to their label and always will be, meaning that the label can release their records any time they want to. Band will get royalties, producers will get points, label gets the lions share. The difference between tour earnings and the advance goes to the band. The money the band gets might look huge but when you average it out, for most bands it’s pretty modest,
Record sales, merch sales, royalties, points,….. bands get income from all that but it’s sliced up into pieces of pie and percentages. Some bands are smart and keep hold of their merch.
And remember that only some of the band get the money, some of them are hired guns who get a daily rate or a fee per tour.
But given that any band (exceptions are obvious to all of us) has a limited shelf life, and all their income is at the front end, and they pay huge huge tax on that too because on paper they’re getting huge money, bands generally don’t end up making big money. Plenty of stories about famous musicians struggling for money.
At a certain level, many musicians are obliged to keep playing and producing music because they’re basically unemployable for anything else, and they’re in hock to the label, and they’re not cool or hot enough for a new label to sign them. The old label might renew the contract and keep them around, or drop them, or not renew the contract even though they haven’t recouped, and now never will.
All the power is with the industry.
Making bands look powerful and important is a trick of the light.
It might actually be better in the future, with less of the enormo-sums being flung at them and more of a normal flow that arrives over time.
Young music makers want to be signed by a manager and an agent, but they’re truly not that bothered about being signed by a label. It’s so easy to make your own records these days. The hard work, the boring work, is the admin: sorting out the show, the tour etc. Paying someone else a percentage of income to get that done makes sense to the band. Signing to a label no longer makes good sense. Unless you want to go up a level and work inside the machine.
Some do, and there will aways be bands that really want to do it the old fashioned way.
But there are now a plethora of small decent independent labels, often started and staffed by people who at some point have been or still are musicians themselves. Those labels are just as able and competent, and if then more supple and responsive, than the big labels.
Bigger labels are increasingly employing younger people and going more skinny at the top end. There has always been a lot of bloat at the top, people drawing down execrable sums of cash to sit round and pretend they have an opinion, shake hands and suck dick.
So so many musicians were traditionally supported by other band members, their wives and girlfriends, or just kinda disappeared when they weren’t on the road. Some bands would pay there hired guns a retainer, or they’d do session work, or work with other bands, or teach music, run or work in studios, or do sound engineering at their local live venue, or whatever else they could manage, but mostly invisibly. Now they’re more visibly doing it, less embarrassed.
In the past, it was seen to be embarrassing or shameful to have to go elsewhere to get some money. The gig economy and online living and the very notion of doing a “side hustle” (its even been given its own name) has changed that.
Bands and musicians have always struggled. Everything is more visible these days.
Things do need to change, we’ve never supported our musicians properly. Music is one of the UKs most lucrative important income streams, internationally. But there is no govt support or recognition or breaks for them.
But it’s not true to say that it was better in the past.