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).

Comments

Keep your guard up

[crazyjj]

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.

Re:Keep your guard up

[bedroll]

What's missing from the article is a comparison of actual sales numbers. The RIAA members are bringing less revenue in but selling more music. That's because people are paying less and digital suppliers are taking a larger cut than traditional retailers. That's what the whole digital revolution was really about, people reacted not just to free music, but to the greed and abusive pricing models of the industry.

Another piece that's missing from the article is that independent music sales now make up a far larger portion of the industry. While some of these numbers are likely to be included in a report like this, many of them are not because the independent artists are not members. The overall music industry may well have eclipsed 1999 revenue a few years ago, but we wouldn't know because only the label revenues are counted.

In short, I think you're right. The industry pines for the days when buying a copy of their works required a physical copy, not just because of bundling though.

Music never needed to be saved.

[fermat1313]

"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.