I was reading an interview with the band "Agriculture" recently and they had a really interesting take on this. From this interview https://www.treblezine.com/agriculture-interview-quiet-viole... :
"DM: We exist as a band because we sell t-shirts. Our job is that we sell t-shirts and the way we promote those t-shirts is by playing music. If we were talking strictly economically, that’s just a fact.
LL: Weirdly, it’s also our most direct engagement with the money we make and with our fans. We’re often selling our own shirts at the merch table; that’s actually how we talk to a lot of fans and get feedback on our sets. We get cash in our hands; that’s one of the most direct economic exchanges in our lives as musicians. So, it is funny because it seems cynical, but it’s actually one of the more grounded exchanges in what we do."
As it turns out, I had a nice little chat with their drummer when I bought one of their tshirts.
Great band!!! The Spiritual Sound is an excellent album.
As far as this interview: I mean, that's every band ever; the music is an ad for their shows and merch, which is the product. Some, like these folks, come to grips with this easier/quicker than others!
1. I understand the truth of it
2. The inefficiency bugs me
I.e. I want to support the band, but feel like only a fraction of the money spent on merch goes to the target. Same with websites that have mugs and such. I don't want another mug, I don't want to pay 5.99 for shipping, I don't need to support the white box oem mug manufacturer.
But I guess in the real pragmatical world, that's the support mechanism that actually works :)
MC Frontalot and MC Lars had a fun take on this same concept in "Captains of Industry", which you may enjoy, depending on your feelings on old nerdcore hip-hop.
https://www.youtube.com/watch?v=XTrKmP7oU9U
It's pretty funny, and includes Fronalot's characteristic wordplay with lyrics like:
> Captains are we. Of what? Industry.
Which could also be taken as:
> Captains are we, of what industry?
Agriculture has just joined my rotation thanks to this story. The process works.
Great band, cool shirts. Gotta say all the Flenser bands got the memo on strong merch.
I think all this talk of entertainment economics is missing the point of the article. Yes, today bands more money from tshirts then recordings. However, in the 70s and 80s they typically made a lot of money from LPs and CDs. In the time of the Ramones, that was how bands made money.
The point is that punk rock was culturally very influential but never very musically popular. God Save the Queen was a hit record but that is the outlier.
I think it is useful to consider that a lot things that endure are not the things that were popular at the time, particularly with music. I saw the Pixies at the Hollywood Bowl a couple years ago and it occurred to me that when they had recorded the songs they are known for I saw at venues not much bigger than bars. They were never really that popular. Or Elliot Smith, who was seriously obscure in his short lifetime.
In the same way, LeBron James has earned more money from selling shoes than playing basketball.
[dead]
It's very smart of them to recognize that.
The world is full of these weird business cases where people aren't aware of the actual product, like how Starbucks US morphed from a coffee shop into an iced dessert drinks company that also incidentally sells hot coffee.
Edit:
Other fun examples -
In the mid-2000s, Porsche was an incredibly successful hedge fund that also sold cars who tried to acquire VW using a short squeeze.
Most US airlines are profitable frequently flier points companies that also operate airplanes to justify the program.
Target US is a real estate company that operates also (profitable) stores.