KreechAlso double post, but yeah sure concerts and touring brings in a lot of money for people like Taylor Swift, but then again people like Taylor Swift aren't really what this is about. People like Taylor Swift will always be fine in the money department. It's musicians that are struggling to be able to support themselves that are really getting fucked in the ass by spotify and pandora and other streaming sites.
When I studied econ we did a case study on this. Basically the rise of internet music (in particularly piracy, this was at a time where something like 97% of music downloaded was done so illegally, streaming hadn't caught on) had meant that artists no longer needed to tour to promote themselves, but rather it became their main source of income. This is a big reason why concert and festival tickets are now so much more expensive (even in real terms) than they used to be.
It's also in stark contrast to the past. When Pink Floyd toured the Wall, their second most commercially successful album, all the well known members except Richard Wright turned a loss. The shows they ran were ruinously expensive, but they couldn't increase the ticket price because their shows were the main way of reaching new audiences. This was a time when radio did very little to promote popular music, particularly in the UK where it was very heavily restricted. The strategy seemed to work for them, The Wall would go on to sell 17.6 million copies, ranking it as the 30th highest selling album of all time.
(Side note because it's interesting: Wright turned a profit on The Wall tour because he fell out with Waters while recording Animals. During The Wall Waters had almost complete creative control over the band, contributing everything except some solos, which were the work of Gilmour. Wright refused to cooperate with Waters, arriving late to many recording sessions and contributing very little of his own, amongst other things. He left the band after recording the Wall, but was hired as a session musician for the tour. That way he had a fixed salary, and the losses were absorbed by the permanent members. Wright would not return until after Waters left, not making any serious contributions until The Division Bell.)