The Business of... MUSIC
Kendrick Lamar is redefining the Music Business before our very eyes. He has revolutionized how artists/performers are paid and compensated for their work. For example, he is expected to make a cool $15 million for his social media platform deal with Apple Music for his 15-minute concert at the recent NFL Superbowl game. Despite not being paid for his show (NFL Superbowl performers are not paid), he could make more than $50 million dollars in other streaming deals, album sales and merchandise just from his one short concert at the 59th Annual Superbowl. His halftime show broke the domestic viewing record with over 133 million viewers. Period. Full Stop In 2022, the music industry was valued at approximately $26.2 billion dollars for the global recorded music sector. However today, the overall global value of the music business is estimated to be over $50 billion. Additionally, the music industry contributes around $170 billion to the US GDP annually, supporting millions of jobs. The rise in the global sales and revenue of the music business is directly related to the rise and influence of paid streaming subscription services. The leading streaming services in the music business are Spotify, Apple Music, Amazon Music and YouTube. The number of paid music streaming subscription services continue to grow and the revenue they generate is unparalleled. The US market is the largest in terms of music consumption and revenue generation. Kendrick has tapped into this new and historic revenue stream. Who is Kendrick Lamar and why should you care? Notably, his fans span generations. How many artists can say that? The 37-year-old musical genius has transformed the iconic phrase, satirical poem and Black Liberation song by Gil Scott-Heron, “The Revolution Will Not Be Televised.” How you ask? Kendrick has moved the revolution to Apple Music and social media platforms making him unrestricted and
unstoppable. He’s calling the shots. Kendrick Lamar Duckworth is a Pulitzer Prize Winner, 22 time Grammy Award Winner making him the third-winningest rapper in Grammy history. From Compton, population 105,000, located a few miles southeast of downtown Los Angeles, is considered the birthplace for “gangster rap.” I must confess, my son introduced me to the talented songwriter about five years ago and I’ve been a fan ever since. Kendrick is regarded as one of the most influential hip hop artists of his generation and one of the greatest rappers of all time. Apparently, Kendrick was named after the late great Eddie Kendricks, the smooth, velvet voice of the mighty Temptations. In 2016, Time Magazine listed Kendrick as one of the 100 most influential people in the world. In 2018, as previously mentioned, he won a Pulitzer Prize for Music becoming the first musician outside of the classical and jazz genres to receive the honor. That’s right - a rapper from Compton won this prestigious global award for music. The Pulitzer is the ultimate world recognition for one’s talents, brains, and achievements. After all, isn’t rap an extension of artistry, poetry and wordsmithing? Two months before the nationally televised Super Bowl game, he won five Grammys at the Grammy’s Award Ceremony, an annual music gala that recognizes the best in the music
Dale R. Hunter Founder, The Hunter Group (THG).
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The Acumen
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