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Music Industry Sees First Revenue Increase Since 1999
Zaatxe writes with a bit of news about the music industry; sales are slightly up (basically flat). From the article: "The music industry, the first media business to be consumed by the digital revolution, said on Tuesday that its global sales rose last year for the first time since 1999, raising hopes that a long-sought recovery might have begun. The increase, of 0.3 percent, was tiny, and the total revenue, $16.5 billion, was a far cry from the $38 billion that the industry took in at its peak more than a decade ago. Still, even if it is not time for the record companies to party like it's 1999, the figures, reported Tuesday by the International Federation of the Phonographic Industry, provide significant encouragement. 'At the beginning of the digital revolution it was common to say that digital was killing music,' said Edgar Berger, chief executive of the international arm of Sony Music Entertainment. Now, he added, it could be said 'that digital is saving music.'"
Because CDs aren't digital. CD sales are declining, and being replaced by the sale of lossy files. I wonder how much more money they could be making if they'd just sell folks lossless music on the open market (not just iTunes) since at least that's all that keeps me buying a CD or three a year (I own way too many CDs personally, and stopped buying music until discovering Bandcamp and easy lossless downloads rekindled my desire to find new stuff).
Make no mistake about it, the music industry still DREAMS of going back to the days when they could charge you $15 for a CD that you had to buy just to listen to one lousy song. Turn your back on them, and they WILL try to go back to a similar model.
What political party do you join when you don't like Bible-thumpers *or* hippies?
Just you wait! Five years will pass and the RIAA will claim this event was the result of the six strikes ISP rule. Given enough time, a little historical revisionism is all it takes to cascade the "truth" to your favor.
Life is not for the lazy.
Actual quote from executives there. Then they prosecuted, lobbied, internationally legislated any and all innovation out of existence. And they wonder why they have such trouble generating revenues from new markets.
I think these numbers are still better than they deserve. Burn in hell, executives.
I wonder how much more money they could be making if they'd just sell folks lossless music on the open market
Most people don't understand what this even means, let alone actually care. All they know is availability and cost, along with how many songs they can fit on their iDevice.
Funny how the initial release of Napster coincides with the start of the music industry's doldrums (1999).
"At the beginning of the digital revolution it was common to say that digital was killing music," said Edgar Berger, chief executive of the international arm of Sony Music Entertainment. "Now, he added, it could be said 'that digital is saving music."
"At the beginning of the digital revolution it was common to say that digital was killing the music industry," said Edgar Berger, chief executive of the international arm of Sony Music Entertainment. "Now, he added, it could be said 'that digital is saving the music industry."
FTFY
This is where they just don't get it. Music has never been in danger. Nothing in the industry has or will stop people from making and performing great music. They aren't concerned with saving music, just their cut of music.
Music industry =/= Recording industry
In fact, the music industry has been doing just fine on the whole, and was largely unaffected by piracy. The recording industry (aka the RIAA and goons) have been suffering, rightfully so
All your 09 F9 11 02 9D 74 E3 5B D8 41 56 C5 63 56 88 C0 are belong to us
Make no mistake about it, the music industry still DREAMS of going back to the days when they could charge you $15 for a CD that you had to buy just to listen to one lousy song. Turn your back on them, and they WILL try to go back to a similar model.
The people who once wanted to charge you $15 for a CD still want to charge you $15 for a CD. If you actually read the article, it's not the "big five" or any of the RIAA members that they're talking about movin' on up. Instead it's distributors like Apple’s iTunes Music Service, Amazon MP3, Spotify, Rhapsody and Muve Music. Google will join them eventually. But you're not going to see UMG, Warner, Sony/BMG, etc because they're still fighting these models. It's just turning into a really slow and long and painful turnover process as the money changes hands. Singer songwriters and performers are learning they don't need big labels as their music will pretty much advertise itself on social media and YouTube. That means the only big guys feeding off them are the distributors listed in the article. Time will tell if the distributors will hang around or continue to undercut each other (since it doesn't appear to be contractual and exclusive like label contracts). But one thing is for sure: more money is making it into the hands of a more diverse group of musicians. And the industry is more diverse and healthier because of that.
My work here is dung.
In my younger days, I purchased vinyl 45 RPM singles for hit songs, and LP records for albums. For the car, most people used 8-track cartridges. They sucked, because the tape slides against itself internally, causing "wow and flutter". They also wore out as the lubrication was consumed. I was unusual because I'd record them to cassette tapes. Soon the 8-track got a bad reputation, and people switched to recording their own cassettes. The industry cried foul - we were "stealing" from them. Rather than selling multiple 8-track cartridges (due to wear), they only sold a single cassette or LP, and users would freely copy them. Oddly enough, sales rose.
When the CD came out, the industry raised the price about 50%, claiming it cost more to produce than vinyl records. We accepted that "fact", and repurchased most of our music collection.
A funny thing happened - the CD-R arrived. Suddenly we could make copies of a music CD for $1. People felt screwed. We knew the record companies screwed the bands, and we knew they were overcharging us, but charging 15 times the cost of a CD-R pissed a lot of people off.
Soon, we had a CD at home, and perfect copies at work, in the car and at the girlfriend's house. Wear it out? No problem - burn another copy. Find a new artist? Burn a copy for a friend. In theory, you'd think this would have caused a massive sales drop, since the earlier formats wore out and the CD did not. Yet, while the industry argued they were losing sales, it turned out to be the period of highest sales in history.
Then Napster and MP3 players appeared. Suddenly the industry was in a panic. The MPAA began an aggressive attack on downloaders, and sued anyone they could find as a scare tactic. Even though past history showed that sharing was a form of viral marketing, they wanted to kill it - perhaps because they have little control over it.
To my ears, nothing wrecks a song like Autotune (sounds like fingernails on a chalkboard to me) compressed to MP3. Most new music sounded too processed and too compressed. In a sea of over-processed crap, I'm finding it hard to find music I want to buy. So I don't.
The music industry doesn't understand the people like me buy music because my music-geek friends would share. Without that discovery vector, I'm simply not exposed to anything I'd buy.
Place nail here >+
I'd add a third variable into it, as a devil's advocate:
Music industry -- doing well.
Recording industry -- meh.
Artists -- dead.
Because the recording industry is not fairing well, they have only focused on markets which give them revenue, which tends to be teens/tweens. This is why we are only seeing pop acts like the Justin Beibers promoted compared to Kurt Cobains or acts that might define/push a genre outwards. Add to this radio, where most "rock" stations are living in a time warp ending around 1995, and it is impossible for an artist to "make it big" these days with a band.