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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).
Only happened because the music industry absolutely refused to sell DRM-free music for a decade. No one wanted to buy music that could go obsolete when the store went away.
Revenue from albums? Actual sales are way up and have been for years:
Here's the 2012 report:
http://www.businesswire.com/news/home/20120105005547/en/Nielsen-Company-Billboard%E2%80%99s-2011-Music-Industry-Report
Overall sales
2012, 2011, Gain
1,661 , 1,611 , 3.10%
Even album sales are up in that report.
Here's their Canadian one from 2009 (couldn't find the US one)
http://www.businesswire.com/news/home/20100204007048/en/Nielsen-Company-Billboard%E2%80%99s-2009-Canadian-Industry-Report
Same thing, total tracks sales are way up, album equivalent are also up. (See the 'overall album sales' +2%).
The price hasn't gone up, so the only way revenue has gone up, is if Apple and Walmart and the rest have paid out more of their income for the music.
And as musicians get a bigger cut from live performances, everybody is happy except the middlemen who have been cut out and a thin elite of top musicians who hoped they could retire at the age of 30.
Maybe not so much... Many artists are being saddled with what are called "360" deals, meaning that the labels get their cut of performances, merchandise sold at performances, publishing, and other media usage of the material. The labels will put in money promoting and fronting money for the tours and selling the new IP they've retained in the deal. But, at the end of the day, it's all accounted using the same shady practices that the 'AA's have always used, so now the artist isn't even guaranteed to make money from performance or publishing either - he or she is living advance to advance in indentured servitude trying to pay off what his or her label has supposedly fronted for his or her "success".
That is all.