Case Study: Jazz Bandleader-Composer
The ARS project includes a series of anonymous financial case studies, being released throughout Spring 2012. These case studies are based on the real finances from real artists, anonymized to protect their privacy.
1995 – present
TIME SPENT ON MUSIC
INCOME DERIVED FROM MUSIC
This case study looks at the world of jazz sidemen through the finances of one Jazz Bandleader-Composer. Like many entrepreneurial small businesses, his net income fluctuates widely from year to year. Anecdotally, his gross income appears to roughly track with the growth of his reputation during this period.
When looking at his gross income, we see that live performance as a leader makes up 77.8% of his income. In addition to his work as a leader, he also earns a steady income each year as a composer, sideman, and teacher.
When looking at his net v gross, Jazz Bandleader’s expenses are high – 80% of his income goes to pay touring expenses, sidemen, managers fees and other expenses. But he is still profits from touring. His net recording income fluctuates from year to year. Some years he loses money on recording. From 2006-2011 he nets a modest recording income.
Examining the artist’s gross income by role reinforces that his recording money fluctuates depending on what years he receives record advances. We also see that roughly 8% of his income is initiated by someone other than the Jazz Bandleader or his team.
Looking at gross income by territory, we see that he is dependent on non US markets for about 44% of his performance income.
We see a similar trend in his PRO Royalties breakdown by territory, that non-US royalties are a significant portion of his PRO royalty income. When looking at his income by album, we see that his compositions continue to earn money for years after the records are released.