Ed Sheeran set to become billionaire. How did he make is money?

Ed Sheeran set to become billionaire. How did he make is money?

Ed Sheeran is said to be well on his way to becoming a billionaire before the age of 30.

So how did he make all that money? 

Metro.co.uk sheds some light on where the money is made. And surprisingly (or not) it isn’t through album sales.

With the increasing dominance of streaming sites, less money is made through the music artists create, touring and selling merchandise now seem to be where the money is coming from.

While Ed makes most of his money from touring, as well as licensing and royalties from songwriting for himself and other acts, for the industry at large, income streams are gushing from areas other than recorded music.

Alice Cooper, who told Metro.co.uk that he solely produces albums for the fans – because there’s barely anything else in it for him.

‘It is kind of funny about the whole record industry now. People like us, who have been around for thirty albums or so, are basically making albums for their fans.’

But it’s not all bad news with streaming, as according to Dan Minchom, the Managing Director at Ochre, an e-commerce platform for the music industry, sites such as Spotify and YouTube just need to be given time.

He said: ‘Streaming is seeing massive growth and there are huge amounts of money coming into the industry.

‘But a fan simply streaming the record will take many years to contribute as much financially as one who buys merchandise and music directly from the artist.

‘For a new artist; merchandise, vinyl, CD and other physical product sales bring an important immediate payback.

‘However, later on, streaming should still be bringing in money with little ongoing investment.’

The Membranes frontman and creator of the Louder Than War magazine John Robb, added to the point explaining that despite the internet making music easier to access, it’s also drained the cash flow.

The 58-year-old said: ‘It’s a cruel and cold world full of disappointment but don’t let that put you off your art.’

‘Working hard doesn’t justify getting paid. The internet has made it easier to get heard and harder to get paid. It’s made it too easy to get heard.

International lighting designer Tim Routledge, who is currently working on the Spice Girls tour, underscored the significance of getting out on the road, and how taking to the stage is the key element in both fame and fortune.

He told us: ‘The huge growth in concert sales versus physical music sales has hit at a perfect time in the development of show technology, creating a sweet spot between demand for shows and ever-changing possibilities to push the envelope in show design.

‘Never before have we as show designers had more options and tools at our disposal, plus the willingness of artists to adapt their shows to engage and amaze.’

He added: ‘By capitalising on the development of technology in show creation, artists are able to connect with their fans on a more personal level, therefore creating a greater demand from fans to see their “idols” in a live experience.

‘Combining this with the audiences increasing need to be wowed – the money flowing into the live entertainment business is far greater than it ever has been.

‘Tours are getting bigger and more elaborate than they ever have been. The music that is being created is the artist’s art, however, the real money is now in “the live experience.”’