As artists begin the push for direct-to-consumer a certain group of creators that are a staple in the music industry stand to lose big! This may leave some producers feeling a little sick after this video is over. I can’t say that I’m here with you but I can empathize with the pain you may feel in 12 months or so however I saw the warning signs last year and so did some of my audience members. But if you want to survive this shift we need to talk about a few things right now!
Artists are craving a solution to Spotify and there are strategies and options!
Artists have started to time-release projects via Even, Bandcamp, and iTunes—only releasing singles to Spotify in the beginning while cataloging with Spotify later. This is a problem because as this behavior becomes the norm, type beat producers and beat leasing producers cannot track money made from these purchased transactions. On top of the original contract, there are no producer points included in lease agreements. In Streaming 1.0 this could fly, but in Streaming 2.0 this is a HUGE problem. Producers are going to have to move their strategy with the market or stand to lose a lot of money as time goes on. Producers may default to keeping things the same this year, but next year some changes will have to be made because if they aren't… well, you get the picture.
Subscription Releases aren’t helping either!
Last year I had a few artists that suggested releasing exclusive music to their communities. This is another undocumented threat because artists can make thousands in their communities providing promotional releases to entice signups. Though money isn't made directly, it is made indirectly and your tracks are the support. At this point, there is nothing that you can do. Even if you tried, you couldn't change this. Imagine a $35 track was purchased to support a community of people that makes this artist $3,500 a month or even $35,000 a month! The only fight is to put it in your contracts and hope they don't do this; however, again, you'd never know unless you were in there. All I'm saying is at least make the attempt to protect yourself in the contract.
AI-Generated Beats the left hook you never saw coming
As more and more artists can produce their own beats via AI, they won't need leases. They will just make their own beats for demos and find other producers to add elements or finish the productions themselves. I entered the music game in the Snap music days, so I know it doesn't take much to create a hit. Being a purist has no place in a monetary conversation. The playing field will continue to be leveled, and even though you may think people still want leases, as time rolls on they won't need you because they have other options. This move will be the invisible glitch in your model. It may be time to start thinking about offering real exclusive production services because in the end, when artists want a real record after they've gotten notoriety off of AI beats, they will be looking to you for your expertise if you’ve developed it.
What if I lose my current income stream from beat leases?
While this is a valid concern, the real issue isn't losing beat lease income - it's failing to adapt to the changing market. The revenue potential from high-ticket and percentage-based production services and D2C partnerships far outweighs the declining returns from traditional beat leasing. This will take some work on your behalf to make this happen though.
What if transitioning to high-ticket production services takes too long to generate income?
The fear of a slow transition isn't the real issue - the real challenge is managing your resources during the shift. You can mitigate this by gradually building your high-ticket client base while maintaining your current beat lease income, creating a bridge between both business models. If you avoid it, you'll be forced to make a desperate transition when beat leasing becomes unsustainable. If you don't avoid it, you'll have established yourself in the new market before your competitors.
What if I can't adapt fast enough to these industry changes?
The real challenge isn't about adaptation speed - it's about taking strategic action now while you still have time. Many producers are paralyzed by the fear of change, but waiting too long to evolve your business model is far riskier than making gradual adjustments today. Because what will happen is one day you'll find yourself in a new industry where your model doesn't work anymore.
Here’s what Type Beat Producers can do!
Sell customized, high-ticket production instead of bulk leasing. Use a combination of upfront fee percentages, and your influence to create unique buy opportunities.
Get in the studio with artists and writers so you can build your brand and fanbase, don’t just work behind the scenes.
Monetize outside of artists by selling sound packs, memberships to exclusively selected people and other production services.
Lock in revenue-share contracts in the D2C model before it’s too late.
Join me in the Music Money Makers Community every Monday at 7pm EST and if you want to build your Record Label in 60 days or less complete with funding sources grab the 60 Day Record Label course.
Catching the wave creates
Higher revenue potential through D2C partnerships and revenue shares will happen so you can build sustainable long-term income streams
Developing high-ticket production services will happen so you can command premium rates and attract serious artists
Creating additional revenue streams through sound packs and memberships will happen so you can reduce dependency on beat leasing
Building direct relationships with artists and writers will happen so you can position yourself as an expert producer in the evolving market
What you’ll face if you miss the wave
Rapidly declining income as artists shift to D2C platforms and AI-generated beats, potentially losing 50-70% of current revenue streams
Growing frustration and career stagnation as the industry evolves without them, leading to missed opportunities in high-ticket production
The difficult choice between making a desperate last-minute transition when it's too late or watching their business model become obsolete
At the End of the Day
The music industry landscape is shifting dramatically, and producers who've relied on traditional beat leasing models are facing a critical turning point. With D2C platforms, AI generation, and changing artist behaviors reshaping the market, the time to adapt is now. Those who recognize these warning signs and take action will position themselves for success in the evolving industry, while those who resist change risk being left behind.
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