How Minimal Beats Can Generate Significant Passive Income via Streaming
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Chapter 1: The Rise of Minimalist Music
In today's music landscape, a 26-year-old musician is redefining the industry. Known as Bonsai Beats, Michael Turner, along with his partner Mike Bono, produces lo-fi music that earns them an impressive $60,000 annually. Remarkably, they accomplish this in just a few weekends.
This duo exemplifies the art of the modern side hustle.
Section 1.1: The Essence of Lo-fi Music
Lo-fi, or 'low fidelity,' contrasts sharply with high-production values typically associated with mainstream artists like Beyoncé. This genre is often used as ambient music for studying or working late into the night.
Turner's approach is straightforward: maximize content output. Together with Bono, they create, produce, and title each track in merely two minutes. Over the past year, they churned out 85 songs in about three hours across several weekends. Talk about efficiency!
Turner's career took off at age 18 when one of his YouTube videos went viral, accumulating over 1.2 million views. Such exposure undeniably bolstered his lo-fi venture. Currently, he has around 12,000 monthly listeners on Spotify. Most of his tracks are under two minutes long, with only three exceeding that duration. For example, "Lovely Lofi," a brief 1:12 track, boasts more than 300,000 streams. Incredible, right?
He has cracked the code for efficient music production.
Section 1.2: Streamlined Music Creation
Using just a guitar, a keyboard, and mixing software called Logic Pro, they produce music like a well-oiled assembly line. They adhere to a strict two-minute timer for each track, ensuring no second is wasted beyond that limit.
Like a savvy entrepreneur, Turner keeps expenses low while maximizing profits. By using TuneCore, which charges only $29.99 annually, he distributes his music on platforms such as Spotify, Apple Music, YouTube, and TikTok. Since everything is recorded and produced at home, there's minimal red tape involved.
Chapter 2: The Sleep Tune Phenomenon
Turner's friends are also cashing in on the trend of sleep tunes. A company based in the U.K., Ameritz, has capitalized on this niche with a simple yet effective business model. They produce tracks featuring only white noise, like the gentle sound of a fan, which many people find soothing.
As listeners increasingly seek ambient sounds for relaxation and concentration, these companies have developed a range of white noise tracks, from calming fan noises to soft rain sounds. Ameritz, for instance, earns between $9 million and $15 million annually from their white noise albums.
It's an uncomplicated yet profitable venture.
Section 2.1: The Illusion of Streaming Success
Streaming platforms have been lauded for democratizing the music industry, providing artists direct access to vast audiences. At first glance, it appears that anyone with talent and a bit of business savvy can make a name for themselves. With affordable equipment and multiple platforms available for music distribution, the process seems simple: create music, upload it, and earn money with each stream.
But the reality is more complex.
First, the revenue distribution from these platforms is dismal. The payment per stream is often just fractions of a penny, meaning only artists with millions of streams can earn a significant income. For instance, Spotify has faced ongoing criticism for its low payout rates (refer to my article on this topic).
Second, the algorithm that recommends music to listeners is flawed. It tends to favor already popular artists and employs a pay-for-play model that drains aspiring musicians' limited revenues. As highlighted by Rolling Stone, this practice pressures vulnerable artists and smaller labels to accept lower royalties in exchange for algorithmic exposure, which is both exploitative and unjust.
Finally, this access has resulted in a saturated market. While it's easier to distribute music, the sheer volume of available songs makes it challenging for new or lesser-known artists to gain recognition.
These challenges raise questions about the true democratization of the music industry through streaming platforms.
With this context, Turner's success may seem like an elusive goal for those aspiring to thrive in the streaming business.
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