How artists can (finally) get paid in the digital age | Jack Conte

307,367 views ・ 2017-08-30

TED


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00:12
Hi everyone.
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So, I'm going to take us back to 2007.
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I'd just spent about six months working on album
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that I'd poured my heart and my soul into,
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and it was getting about three plays per day on Myspace at the time,
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and I was getting more and more depressed when I started noticing these other people
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who were playing guitar and singing
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and putting videos on this new site called YouTube,
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and they were getting 300,000 views.
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So I decided I'm going to start making some Youtube videos.
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And one day they featured a video of my band on the homepage,
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which was amazing -- we got a bunch of new fans.
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We also got a bunch of people
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who, I guess, just didn't really like the music or something --
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(Laughter)
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It's OK because people started coming to our shows,
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and we started touring,
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and we came out with a record.
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And when I checked our bank account balance
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after our first monthly iTunes payout,
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we had 22,000 bucks in it,
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which was amazing because at the time I was living at my dad's house,
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trying to make a living as a musician by uploading videos to the internet
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which literally zero people respected in 2009 --
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even the people who were uploading videos to the internet.
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And so for the next four years,
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I uploaded more and more videos to the Internet,
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and they got better and better,
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and we made enough money through brand deals
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and commercials and iTunes sales
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to buy a house.
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And we built a recording studio.
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But there was one big problem:
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making money as a creative person in 2013 was super weird.
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First of all, the business models were changing all the time.
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So our 58,000 dollars of annual iTunes download income
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was about to be replaced by about 6,000 dollars of streaming income.
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Steams paid less than downloads.
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And then as more and more creators started popping up online,
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there was just more competition for these five-figure brand deals
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that had kept the band afloat for years.
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And to top it all off, our videos themselves --
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the creative stuff that we made that our fans loved and appreciated --
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that were actually contributing value to the world,
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those videos were generating almost zero dollars of income for us.
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This is an actual snapshot of my YouTube dashboard
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from a 28-day period
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that shows one million views
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and 166 dollars of ad earnings for those views.
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The whole machine in 2013
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that took art online and outputted money
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was totally nonfunctional.
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It doesn't matter if you're a newspaper,
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or an institution,
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or an independent creator.
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A monthly web comic with 20,000 monthly readers --
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20,000 monthly readers --
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gets paid a couple hundred bucks in ad revenue.
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This is 20,000 people.
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Like, in what world is this not enough?
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I don't understand.
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What systems have we built where this is insufficient
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for a person to make a living?
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So, I actually have a theory about this.
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I think it's been a weird 100 years.
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(Laughter)
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(Applause)
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About 100 years ago,
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humans figured out how to record sound onto a wax cylinder.
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That was the beginning of the phonograph.
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Right around the same time,
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we figured out how to record light onto a piece of photographic paper,
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celluloid -- the beginning of film and television.
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For the first time, you could store art on a thing,
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which was amazing.
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Art used to be completely ephemeral,
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so if you missed the symphony, you just didn't get to hear the orchestra.
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But now, for the first time,
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you could store the orchestra's performance on a physical object,
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and like, listen to it later,
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which was amazing.
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It was so amazing in fact,
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that for the next 100 years, between 1900 and 2000,
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humans built just billions and billions of dollars of infrastructure
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to essentially help artists do two things.
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First, put their art on a thing,
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and second, get that thing around the world
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to the people who wanted the art.
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So, so much industry is devoted to these two problems.
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Oh my gosh, there are trucking companies,
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and brick-and-mortar and marketing firms, and CD jewel case manufacturers,
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all devoted to these two problems.
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And then we all know what happened.
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10 years ago, the internet matures
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and we get Spotify and Facebook and YouTube
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and iTunes and Google search,
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and a hundred years of infrastructure
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and supply chains and distribution systems
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and monetization schemes
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are completely bypassed --
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in a decade.
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After 100 years of designing these things,
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it's no wonder that it's just totally broken for creative people right now.
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It's no wonder that the monetization part of the chain doesn't work
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given this new context.
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But what gets me super excited to be a creator right now,
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to be alive today and be a creative person right now,
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is realizing that we're only 10 years into figuring out this new machine --
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to figuring out the next 100 years of infrastructure for our creators.
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And you can tell we're only 10 years in.
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There's a lot of trial and error, some really good ideas forming,
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a lot of experimentation.
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We're figuring out what works and what doesn't.
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Like Twitch streamers. Who's heard of Twitch?
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Twitch streamers are making three to five thousand bucks a month
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streaming gaming content.
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The big ones are making over 100,000 dollars a year.
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There's a site called YouNow,
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it's an app.
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It allows musicians and vloggers to get paid in digital goods from fans.
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So, I'm also working on the problem.
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Four years ago I started a company called Patreon
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with a friend of mine.
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We're 80 people now working on this problem.
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It's basically a membership platform
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that makes it really easy for creators to get paid --
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every month from their fans to earn a living.
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For a creator, it's like having a salary for being a creative person.
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And this is one of our creators.
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They're called "Kinda Funny."
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They have about 220,000 subscribers on YouTube.
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And when they upload a video,
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it gets somewhere around 15,000 views to 100,000 views.
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I want you to check yourselves right now.
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I think when we hear numbers like that, when we hear "15,000 views,"
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and we see content like this,
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we just snap categorize it as being not as legitimate
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as a morning show that you'd hear on the radio
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or a talk show that you'd see on NBC or something
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But when "Kinda Funny" launched on Patreon,
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within a few weeks, they were making 31,000 dollars per month
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for this show.
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It took off so fast that they decided to expand their programming
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and add new shows,
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and now they launched a second Patreon page --
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they're making an additional 21,000 dollars per month.
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And they're scaling what's essentially becoming a media company,
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financing the whole thing through membership.
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OK, here's another example.
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This is Derek Bodner,
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a sports journalist who used to write for Philadelphia Magazine
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until a few months ago when the magazine cut out all sports coverage.
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Now he writes articles and publishes them on his own website --
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he's still covering sports, but for himself.
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And he's making 4,800 bucks a month from 1,700 patrons,
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financing it through membership.
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This is Crash Course --
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free educational content for the world.
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This show is actually on the PBS digital network --
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29,000 dollars per month.
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This is a duo sailing around the world,
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getting paid every month for documenting their travels
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from 1,400 patrons.
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This is a podcast, "Chapo Trap House", making --
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actually, since I screenshotted this,
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they're making an additional 2,000 dollars per month,
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so they're now making 56,000 dollars per month for their podcast.
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And Patreon's not the only one working on the problem.
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Even Google's starting to work on this.
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A couple years ago, they launched Fan Funding;
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more recently, they launched Super Chat
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as a way for creators to monetize live streaming.
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Newspapers are starting to experiment with membership.
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New York Times has a membership program;
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The Guardian has over 200,000 paying subscribers
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to its membership program.
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There's this bubbling soup of ideas and experiments
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and progress right now,
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and it's pointing in the direction of getting creators paid.
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And it's working.
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It's not, like, perfect yet,
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but it's really working.
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So, Patreon has over 50,000 creators on the platform making salaries --
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getting paid every month for putting art online,
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for being a creative person.
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The next hundred years of infrastructure is on the way
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and it's going to be different this time because of this --
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because of the direct connection between the person who makes the thing
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and the person who likes the thing.
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About seven or eight years ago,
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I went to a cocktail party.
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This is when the band had hit our first machine,
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so things were really cranking.
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We had just made about 400,000 dollars in one year
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through iTunes sales and brand deals and stuff like that.
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And this guy comes up to me and says,
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"Hey, Jack, what do you do?"
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I said, "I'm a musician."
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And he just sobered up immediately,
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and he stuck out his hand,
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put a hand on my shoulder,
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and in a real earnest, very nice voice he was like,
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"I hope you make it someday."
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(Laughter)
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And ...
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I have so many moments like that logged in my memory.
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I just cringe thinking of that.
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It's so embarrassing to just not feel valued as a creative person.
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But as a species,
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we are leaving that cocktail party behind.
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We're leaving that culture,
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we're out of there.
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We're going to get so good at paying creators,
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within 10 years,
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kids graduating high school and college are going to think of being a creator
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as just being an option --
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I could be a doctor, I could be a lawyer,
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I could be a podcaster, I could have a web comic.
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It's just going to be something you can do.
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We're figuring it out.
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It's going to be a viable and sustainable and respected profession.
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Creators are going to come out the other end of this weird 100 years,
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this century-long journey,
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with an awesome new machine.
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And they're going to be paid, and they're going to be valued.
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Thanks, everybody.
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(Applause)
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I think it went pretty well.
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I want artists who saw that to not give up --
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to know that we're getting there.
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It's not there yet,
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but in a couple years,
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there will be so many systems and tools for them
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to just make a living online,
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and if they've got a podcast that's starting to take off,
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but they're not able to make money on it yet,
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that's happening
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and they're going to be paid.
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It's happening.
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