Portfolio.com did an interesting estimate on how much money Stairway to Heaven has made over the years. You can check out the full article here.
In the end they estimate that Stairway to Heaven has made over $500 million and could make at least another $10 million if Led Zeppelin decided to license it for use in commercials, movies and TV shows.
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Shortly after reading about the millions companies would pay to use a song in their commercials I read the news about Rhapsody selling 99 cent MP3 downloads and realized that the value of a song depends greatly on who’s buying it. To the people who bought over 5 billion songs from iTunes a song is worth 99 cents. For the pirates who are downloading music illegally a song isn’t even worth paying for. But to a company looking to strengthen their brand, music is a great vehicle.
I’d love to find some solid stats to back this up, but it seems like the value of music to consumers is going down while the value of music to companies is going up. This should be good news for up and coming bands because even if they make less money from record sales, a lower price for consumers to buy their music will give them more exposure to people who would otherwise not spend $12 on a band they’ve never heard of. A lower price to customers should (assuming the music is good) bring in more fans. More fans means more leverage when negotiating with companies who want to use music to strengthen their brand. Plus until they figure out a way to illegally download t-shirts, bands can still monetize their fanbase with good merchandising.
For more info on breaking into music licensing, check out this great post by Peter Spellman.
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