Christian music is big business. The sales numbers show that. But Christian music insiders argue it’s a ministry as well.
Although sales figures fell about 10 percent in the first six months of this year, the industry still moved 21 million units during the period, according to the Gospel Music Association (GMA). For all of 2002, retailers sold about 49.66 million albums.
Artists such as Jars of Clay, Michael W. Smith, dc talk and Steven Curtis Chapman each have sold between 5 million and 8 million albums during their respective careers. Kirk Franklin and Sandi Patty each have sold 11 million. Amy Grant tops the list of Christian artists at 24 million units sold.
Today, contemporary Christian music is sold nationwide by mainstream retailers as well as Christian bookstores.
Both the companies that produce the music and the artists themselves get more than heavenly rewards for their efforts. The GMA estimates Christian music generates about $900 million in sales annually.
Christian artists typically get between 8 percent and 20 percent of the sales of albums, according to Dan Keen, assistant vice president of the American Society of Composers, Authors and Publishers.
Balancing evangelism and economics
Michael W. Smith’s “Worship” album, for example, has sold more than 1.2 million units. The suggested retail price is $17.98, although many retailers sell albums for less. Calculated conservatively, assuming an average sales price of $12 and a low-end royalty of 8 percent, that brings the artist’s earnings to more than $1 million.
On top of that, artists earn about 4 cents per song that they write on each album sold, Keen said. If they co-write the song, they divide the royalties with the co-authors. Each of the royalty figures can be negotiated on an individual basis, Keen said.
But touring is where most artists get a significant amount of their income, Keen noted. They earn money from ticket sales, merchandise and the music bought at the shows.
A recent tour with Michael W. Smith and Third Day ranked as one of the top 100 tours of all musicians in 2002, according to Pollstar magazine. Celebrate Freedom, a Dallas-area Christian concert that featured 17 acts in 14 hours, drew more than 200,000 people. “Most artists, if they’re realistic, look at the record as a promotional piece to get better live gigs,” Keen said.
With the growing success of the Christian music industry has come questions about the nature of the business. Artists consistently maintain they are trying to make a difference in lives with their message, but economics constantly remind fans the genre is a business.
John Styll, president of GMA, argued it is both ministry and a business. The labels operate to make money by getting the music out to radio stations and retailers, he said. “I can’t excuse the fact that these labels are businesses. But ministry can happen as a result.”
Christian music labels and businesses are like any other business run by Christians, Styll noted.
“Lots of Christians make lots of money,” he pointed out. There is “nothing inherently wrong” with making money. (ABP)
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