Music Biz Predicts 6% Decline in '03

jonerik writes "According to this article from Reuters, music industry executives gathering this weekend for the global music industry conference Midem in southern France are being told that a 6% industry-wide decline in sales is being predicted for 2003; not as bad as last year's 9% decline, but bad enough since '02 and '03 come on top of a five percent dip in 2001 and a 1.4 percent fall in 2000. As a result, talk of consolidation is rampant at the conference, with the most likely scenario being a buyout of EMI by BMG-Bertelsmann. Critics, however, are skeptical that the labels' problems will necessarily be solved by simply bulking up. 'The politics at the major labels hasn't changed. The guy who puts his neck out on the line could get fired. Whereas the guy who keeps his head down is safe, and he gets to keep his BMW for another year,' said Paul Myers, founder of Wippit.com, a subscription download site."

Comments

Re: Imagine That

[kryonD]

I just saw Bon Jovi in concert at the Tokyo Dome. The Japanese have been in an economic slump longer than America. However, that stadium was sold out in 10 minutes and packed with 50,000 fans. Most of them came in wearing, or purchased in the stadium, all kinds of Bon Jovi gear. A T-shirt with Jon's picture on it was running about 6000 Yen which is close to $50. CD's here run 3000 Yen ($26).

My point is that good music still sells. Part of this is also due to a loyal fan base. As long as the music industry continues to manufacture these cheezy one-hit-wonder acts in the hope of quick money from Tower Records, their industry will continue to suck. If they start focussing on what the fans want, they will keep their loyal fan base and thus, their solid revenue flow.