 Wow, what's up everybody once again is brand man Sean and I'm here back with my guys sir. Love How you guys doing today? We got a topic for you guys Which is basically where this music industry is going if you looked at some of these deals lately Some people might have heard about Gucci man getting the 10 million dollar deal XX 10 tassillon getting the six million dollar deal Well, somebody just got a four million dollar deal almost like two people. I think I had a four million dollar deal recently Nipsey, I don't know how much he got paid But just a fact that Nipsey hustle is actually signing with somebody all these things are indicative of Something to come so we're gonna talk about where the industry is going because seeing that kind of money Giving out to artists is not what you've seen for a good amount of time and we're gonna talk about why so first sir I want to just get your opinion on What those deals are showing what they mean to you when you see stuff like that It means this is going to be growth in the game. I mean that there's industry is doing a northern trajectory or an upward trajectory I'm I have this conversation with investors a lot of times people will bring me in to have investor Conversations for them speak to the people that are gonna be cutting the checks and a lot of times I show graphs and documents and things that nature that showcase and forecast Where the freaking bread is going and it's not surprising to me the game has been on a Norfolk on an upward trend yet for a while Streaming has definitely changed the game I think streaming is going to lead to more success than we've ever seen in music history So we all have we all know about the golden age of music Which was the 90s and things of that nature when CDs people were buying four or five CDs at a time To listen to them in multiple places I think streaming is actually gonna beat that and we're going to live in a completely different ecosystem where for the first Consumption is going to be tracked from the moment a record is first broken and heard to the moment It blows up and is all over the place two years later when the artist is dead and gone and the record is still making money There's a lot of bread to be made a whole lot of bread to be made So I could basically echo those things when we The water industry is going with streaming I know a lot of people didn't think it was great at first But really consumptions at an all-time high, but we've been missing out on that consumption, right? We've been making less money with more consumption now The money being made is going to really lead a lot back closer towards the amount of consumption as going down Which is more than the 90s, which means more money will be in this game And you're seeing deals like deals that people have started to be making because for one if you look at artists like Gucci Mane X Nipsey Hustle they have a little there's their situations are a little bit more stable, right? So when record labels record recognize that they say, okay, this is something we can invest in they have a lot more leverage But on top of that also when they're looking at the fact that these streaming numbers are going to be coming in Streaming is going to increase is still there's still a lot of young people, right? who have not adopted streaming yet because They don't even have credit cards and things like that But a lot of these this SoundCloud audience is as they get older and age People are going to be moving into streaming as that's just going to be the new norm for a lot of people 100% agree and you gotta understand that it's easy to forecast the value So when you look at someone you say why is he getting a four million dollar check? Well, when you start to I know you've done a video on streaming I've done a video on my channel about streaming and I know in mind I calculate it You know based off of this channel this channel this channel this channel this channel how much you get per stream Yep, right when you start doing those type of calculations and you start looking at an artist's number It gets real easy to project. Hey if I sign this artist for three albums Well, the last two albums that he did on his own with no marketing real marketing capital He was able to generate X amount of strings what you're worth X amount of dollars So if I put X amount of new dollars in that artist It's a chance that I should be able to at least break even off the previous fan base that they've already built And then you got to think think factor in it. They're probably gonna eat a little bit on the publishing They're probably gonna eat a little bit on what publishing royalties are that they might eat a little bit on some 360 If they have exactly 360 scenario, right? So, you know, there's multiple ways from they get their cash back And so they get have more confidence in putting their cash out there Yeah, and you're talking about real-time graphs that are gonna be available here as all this stuff is tracked on streaming So with that kind of thing happening sir talked about the projections being a lot more accurate That's just going to be some there's something called predictable revenue, right? If you guys don't know this is something that's very common in the tech industry when you see anything that's subscription based model It's predictable revenue. So that means all right. I have 100 customers and they're paying $10 of $10 a month right those $10 times a hundred customers mean the thousand dollars per month multiply that by 12 That's $12,000 a year, right? And they just scale that scale that out That's why companies like Netflix and all them all of the subscription companies have such high about Valuations it's not going to be the exact same when you look at artists because people aren't subscribing directly to artists That's right. They're subscribing to these streaming platforms But they will be able to create a lot more predictable Biddily when it comes to these formulas and how they calculate what an artist is going to put out on top of that When we talk about listening sir also mentioned breaking your record imagine a world where for one Consumption is going to be almost like just a second layer of skin like there's these barriers of yeah Like just I go pay for the album You know I get my check ready and all that kind of stuff. That's that's no more right you already own the platform You're already paying $10 a month and it's going to be a subscription for Spotify. So you're not even thinking about it So really you just go get what you want. It's going to feel like I just go get what I want There's no barrier and let me give you let me give a great example of that So years ago if you wanted lights in your house, you had to use kerosene, right? So kerosene was actually something that you had to physically go to the store buy fill it up and Power your your house when it comes to lights and electricity and all different things that you wanted This was the norm at one time It would have been awkward for a person to say wait you telling me I have to pay every month for lights No matter what are you gonna gonna cut them off? I don't know you would have had some older generation rebelling against that, right? But in the future music is the same way. So right, you know, we're coming from a time period We were downloading records and we're paying a dollar for warming or we were illegally stealing the records And now we're going to a place where you know a $10 $7 $12 14 maybe 15 I think music can actually potentially get up to you know, anywhere between 20 to $60 depending on how these companies are Consolidated in the future, but that would become a regular bill just like you pay your internet bill Just like you pay your electric bill. You don't look at these things as you know, luxuries You look at it like I need electricity And I think music is going to get in that space as time begins to progress and which opens up the door For a lot of revenue to be made It also forces a lot of conversations around the legality of you know as companies grow If the users aren't paying how are they going to buy out? What is the value of the stream outside of what the streamers think the value gap argument between YouTube being that YouTube has more Streams than any other provider in the space, but they're paying out less than any other provider in the space How is that going to be evaluated in the future if they win that legal battle? Oh My god, the number is gonna completely that's gonna be crazy You know, it's a lot of opportunities. So like like sir said, it's gonna be the norm and For anybody who can't perceive this being this way of music just realize we're talking about music But it's gonna be that way with a lot of things right like there's Some people who just they pay a subscription for their house to be clean, right? They pay a subscription like for these grocery delivery services. That's just one That's the direction that we're moving in like things are just going to show up when we want them low barriers to access to entry That's just a word. We're moving towards. That's a little off topic. I might go down that rabbit hole But what I can say about that is with things being on streaming when we talk about the idea of Being able to be tracked from the moment your record broke and being able to go back and look the data Imagine a world when now not only do we actually be able to get paid for the streams of let's say when Consumer like buys my project right back in the old day a consumer by your project project You get that money from that consumer in that way, right? Now you translate that to streaming Okay, whenever my fans listen to my music, I'm getting paid that way But there's another person that you wouldn't necessarily get paid in a lot of ways But back in the day which will be a DJ DJ playing your music in the store in the or in the club Or just or just stores like Starbucks playing music. Now you're getting paid for those streams too, which back in the day Some of those like the actual big corporate stores You might get paid because they have to go through a more official system But like just a DJ playing your stuff in the store or random people you would get paid for that Right in the future. You're going to get paid for literally every time Exactly every everything whenever your shit gets played you will get paid and then you also have to look at the fact that Concert ticket sales are the all-time high people are attending concerts at record numbers Venues, you know things of that nature are selling out at different rates. So, you know, the sales of Tickets have increased. You also look at merchandise sales overall have increased So you're seeing an increase in that area You're also looking at an expense decrease. So you're looking at you know back in the day when they were given out all these big Four million dollar two million dollar six million dollar deals It was taking millions and millions of dollars just to promote and break the record or even create the record Now, you know, the artists are making the records themselves in their home studios Or they're making the records in some local studio the cost of making a record are extremely low the cost of Putting the record out into the market and distributing it on a worldwide scale are extremely low So not only are your revenues increasing but your expenses are decreasing which leaves this huge gap You know back in the day you had to pay for it BET and MTV and all these platforms to play your records You don't have to do that anymore. There's a time period We had to really throw cash and radio and you don't even got to do those things anymore So all of your expenses are shrinking and your revenue is increasing This is going to be a glorious time for the game and that's why the money is flowing like this Alright, I'm back and I would like to know What you guys think and how you feel about the deals y'all have been seeing lately Does that change your perspective on being independent or not does that make making a deal more attractive to you? Especially when you see people who have been independent and just so Successful without a label like nipsey hustle eventually signed with the label What are your thoughts on that but other than that if you liked this video hit that like button And if you like it you might as well share it, but if you ain't subscribed run, you know what to do hit that subscribe button